Multifamily Financings Fall 27% in First Quarter, Less than in Other Real Estate Sectors
By Anuradha Kher, Online News EditorWashington, D.C.–Loan originations for commercial and multifamily mortgages fell on a year-over-year basis in the first quarter, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. First quarter originations were 53 percent lower than during the same period last year. The year-over-year decrease was seen across all property types and most investor groups. “Three trends jump out from this quarter’s figures: the impact of the credit crunch, a return from the extraordinary record origination volumes of 2005, 2006 and 2007 and strong variation between different investor groups,” says Jamie Woodwell, MBA’s…
Special Report from AIA National Convention: Top Architecture Trends
By Erika Schnitzer, Associate EditorBoston–In keeping with the concerns of today’s society, this year’s AIA (American Institute of Architects) national convention and design exposition placed great emphasis on the role of social responsibility within architecture. Many of the growing trends demonstrated at the show involved awareness of the impact architecture has on the world, as well as advances in new technologies to improve upon design.”BIM (Building Information Modeling) and sustainable design were the two areas of interest at the convention,” notes Sandi Susanto of Seattle-based Weber Thompson. “We are interested in BIM and are currently talking with vendors and other…
Continued Mortgage Woes Prompt Executive Changes at Wachovia, WaMu
Charlotte, N.C.– As the mortgage market fallout continues, Charlotte, N.C.-headquartered Wachovia Corp. fired its chief executive and Seattle-based Washington Mutual Inc. removed its CEO from his chairman’s post this week.Both banks are big players in the home loan market and have lost billions, which has had a huge effect on the stock market, according to the Los Angeles Times.On Monday, Wachovia–which became heavily involved in California’s adjustable-rate mortgage market in 2006–removed CEO Kennedy “Ken” Thompson. Wachovia had a $393 million first quarter loss and cut its dividend by 41 percent.In April, the lender agreed to pay $18.9 million to federal…
Bank of America CEO Expresses Approval of Planned Countrywide Purchase
Charlotte, N.C.– Bank of America CEO Ken Lewis reaffirmed his belief Monday that–despite housing market issues–purchasing mortgage company Countrywide Financial Corp. is still a solid investment, the New York Times said.Speaking to investors on a conference call sponsored by Deutsche Bank, Lewis said the housing market would pick up by early 2009. Countrywide’s sales force will help Charlotte-based Bank of America–the second largest U.S. bank–increase its market share in the mortgage industry, he said.The bank is purchasing Countrywide for roughly $4 billion; however, some fear Countrywide’s loan portfolio–along with the declining mortgage market–could cause expensive losses and hurt Bank of…
Declining Home Prices Take Valuations to Pre-Bubble Levels
Cleveland–Lower U.S home prices have brought valuations–the difference between a home’s price and what it should cost–to pre-housing boom levels, according to a survey released Monday by research firm Global Insight and Cleveland-based banking company National City Corp.In the first three months of the year, home prices dropped in 262 of the 330 metropolitan areas studied–which means just eight markets are now thought to be overvalued, CNNMoney.com said. Last quarter, 14 markets were considered overvalued. At the housing market’s 2006 high point, 53 metro housing markets were considered to be valued above their homes’ actual worth.The readjustment was most pronounced…
Biggest U.K. Building Equipment Manufacturer Says Lower Demand Is Spreading to Europe
Rocester–JCB–the U.K.’s largest construction equipment manufacturer–says that reduced North American demand for its building equipment is now prevalent in some western European countries, according to the Financial Times.Due to growing demand in emerging markets including Russia, India, Poland and South America, the company–headquartered in Rocester in the U.K.–is set to announce record sales, profits and market share for 2007 on Tuesday.JCB’s pre-tax profits increased 25 percent to £187 million ($367,296,107) in 2007. The year was, in JCB’s words, “the most successful year in its 62-year history.”However, the company is facing less demand for its products in the future. Because infrastructure…
DEAL OF THE DAY: Quantum First Closes $22.61M Loan to Finance 25-Building Rental Community
By Anuradha Kher, Online News EditorDallas–Quantum First Capital recently closed a $22,610,000 loan to finance the Vail Quarters Apartments in Dallas. The loan was funded through Quantum First Capital’s correspondent relationship with Green Park Financial through the Fannie Mae DUS program. The loan was structured at a seven-year term with full-term interest-only payments at a sub-5.75 percent interest rate.The Vail Quarters Apartments is located at 3900 Briargrove Lane in Dallas. The 25-building, 332-unit Class A project was completed in 2007. Developed on 9.61 acres, the garden-style, apartment community features one and two-bedroom units averaging 864 sq. ft.The units are finished…
Firms Compete in LA’s RFP Process for 5.2-Acre Project
By Anuradha Kher, Online News EditorLos Angeles–A panel of city agencies and local citizen groups in Los Angeles will decide which of the three short-listed design firms will design a mixed-use project slated for a 5.2-acre site at the intersection of First and Almaeda streets in Los Angeles.The property, located in an area that is a merging point for Little Tokyo, Chinatown and Downtown, is owned by the city and will be sold to the development team that best meets the criteria reflected in the city’s request for proposal (RFP) for the project.The three developer and architect team finalists include…
Starrett City Will Remain Affordable, Says HUD Secretary
By Anuradha Kher, Online News EditorNew York–Senator Charles E. Schumer, Gov. David A. Paterson and local politicians and tenant advocates released a detailed blueprint this week for evaluating any potential sale of Starrett City, a 5,881-unit affordable housing community in Brooklyn, New York, which is the largest federally subsidized development in the United States. In recent years, there has been speculation that the community might be sold to a private developer and converted into condominiums.Starrett City, (now called Spring Creek Towers), will be put up for sale this week, but potential buyers will receive a memorandum of understanding stipulating that…
Green Affordable Housing Project Breaks Ground in Stamford
By Erika Schnitzer, Associate EditorStamford, Conn.–Jonathan Rose Companies, a New York-based real estate development, planning, consulting and investment firm, and New York-based W&M Properties, a real estate management, marketing and acquisition firm, broke ground today on Metro Green Apartments, a 50-unit LEED-certified affordable housing project.The project is the first phase of the 238-unit Metro Green Residential, a mixed-use transit-oriented development of mixed-income rentals and for-sale units. The project is a candidate for LEED New Construction and Neighborhood Development gold certification.Located at the Stamford Transportation Center, the project provides a pedestrian link to the Stamford Metro North Train Station.”Metro Green Apartments…