Home Depot to Close 15 Stores, Reduce Expansion
Atlanta–Atlanta-based home improved retailer Home Depot announced Friday it would close 15 stores and suspend the development of 50 stores, the Atlanta Journal-Constitution reports.Home Depot attributed its difficulties to the housing slump and slowing economy. The store closings–at locations primarily in the Northeast and Midwest–will affect 1,300 employees. “Closing a store is always a difficult decision because it affects both our people and our communities,” Home Depot CEO Frank Blake said in a statement. “But, as with our decision to slow future store growth, this is the right decision and will bring long-term benefits to our associates and to our…
Housing Bill Gets Thumbs Up From House Financial Services Committee
Washington, D.C.–The House Financial Services Committee approved the bill designed to help troubled homeowners–which would allow the Federal Housing Administration to guarantee to $300 billion in new mortgages–on Thursday, CNN.comreports.The committee passed the bill with a vote of 42 to 21; the entire House should weigh the measure next week.Democratic House Financial Services Committee members shot down several Republican amendments on Wednesday, including proposals to limit the program to low- and middle-income borrowers and to exclude homeowners with poor credit. Homeowners would need a mortgage-debt-to-income ratio of 35 percent or higher to qualify; their lender also would have to agree…
DEAL OF THE DAY: HFF Provides $24.7M Loan to Greystone Group
By Anuradha Kher, Online News EditorPhoenix–The San Diego office of HFF (Holliday Fenoglio Fowler L.P.) recently arranged a $24.7 million construction loan for West Town Court, a 274-unit multifamily development in Phoenix.Real estate development, management and construction services firm, The Greystone Group headquartered in Newport Beach, Calif., received the 36-month, adjustable-rate loan with U.S. Bank. Aries Capital was the co-broker for the transaction. Estimated for completion in the fourth quarter 2009, West Town Court will have 22 buildings with one-, two- and three-bedroom units averaging 846 sq. ft. Parking will be available in attached and detached garages as well as…
Sperry Van Ness Chicago Merger with Fisher/Sears Creates 30-Broker Office in the City
By Erika Schnitzer, Associate EditorChicago–Sperry Van Ness Chicago is merging with Chicago-based Fisher/Sears and Associates Inc., a firm specializing in the sale of multifamily properties throughout Illinois, Indiana and Wisconsin.“This is a good mix of the culture of the two companies,” Jim Sears, (pictured) a certified public accountant who previously headed Fisher/Sears and Associates Inc., and who is now the director of multifamily sales for Sperry Van Ness Chicago, tells MHN. “We can now more effectively put the interest of the client first by aggressively marketing to investors and other brokerage companies. The opportunity will maximize the exposure of our…
Construction Begins on Dutch Architect’s First Major American Building
By Erika Schnitzer, Associate EditorNew York–Construction on Dutch architect Ben van Berkel’s first major American building, Five Franklin Place, has recently begun. New York-based Sleepy Hudson LLC is developing the 20-story 55-unit condominium tower, located in New York’s TriBeCa neighborhood. Construction is expected to be complete in the next two years.In an attempt to keep up with Manhattan’s modern building boom, the tower will be wrapped in shifting horizontal black metal bands, giving it an etched effect as light reflects off the ribbon-like structures. “I hope the building will be a real new anchor that people will refer to. It’s…
Two Real Estate Principals Launch Investment Co., Say Liquidity Crunch Allows Them to Compete with Large Groups
By Anuradha Kher, Online News EditorLos Angeles–Two Los Angeles real estate principals, Mory Barak, formerly of Buchanan Street Partners and Jeff Weller, formerly with CB Richard Ellis, have formed a new privately held real estate investment company called Lion Real Estate Group LLC.Lion Real Estate will focus on acquisitions of value-add and opportunistic multifamily projects in Los Angeles through direct investments in equity and debt secured by real estate. Along with the launch of the firm, the founders also announced their acquisitions of 417- 421 Ocean Park Blvd., a seven-unit property located in Santa Monica, Calif., and Villa Gramercy, a…
Multi-Housing Executives on the Move
Nate Kredich Joins U.S. Green Building Council as First VP of Residential DevelopmentWashington, D.C.–Veteran residential executive Nate Kredich has joined the U.S. Green Building Council (USGBC), stepping into the newly created role of vice president for residential market development, overseeing USGBC’s LEED for Homes program.Kredich comes to USGBC with experience in the residential construction business. He spent the last five years with Creative Touch Interiors (CTI), a national turnkey provider of design center services to the nation’s largest homebuilders. Kredich led the sale of CTI to The Home Depot in 2004 and oversaw CTI’s integration into the home improvement retailer,…
May Market Pulse
Commentary and Data Supplied by Dean Crist, Senior Economist, National Association of Home Builders Apartment Starts: The roller coaster continues as a steep drop in starts (at a seasonally-adjusted annual rate) for March more than offset February’s gain. While for-rent and for-sale multifamily aren’t differentiated in the monthly data, a majority of current starts are rentals.Rent Changes: Rent growth has slowed in comparison to the entire consumer price index, but that’s to be expected, since the entire CPI includes items such as gasoline, food and beverage costs, and medical care—all of which are rising faster than rents.Interest Rates: The Prime…
Products: Creating a Green Footprint
By Erika Schnitzer, Associate EditorWith the growing concern about the effects of global warming, developers, architects and designers are focusing on energy consumption to reduce the carbon footprints of for-rent and for-sale multi-housing projects.”Anything we can do to make our properties more environmentally friendly in design and maintenance resonates and is of interest to a segment of the market,” says Mike Everly, president of Novare Management, a subsidiary of Novare Group that provides property management services. While the initial cost of green products may be higher than their non-sustainable counterparts, developers, architects and builders often end up paying less in…
Foreclosures Double GMAC’s First Quarter Loss
Detroit–Foreclosures are causing problems for some mortgage handlers, including GMAC, General Motor’s finance company, Forbes said.Detroit-based GMAC posted a first quarter loss this week that was nearly twice as much as the one it announced during the same period in 2007.GM fell 2.3 percent–50 cents–to $1.44 in afternoon trading as a result on Tuesday.The company’s home mortgage unit is suffering because of “falling home prices in the U.S. and tight mortgage liquidity around the world,” according to GMAC Chief Financial Officer Robert Hull.