Multifamily Starts Down More than 25% in June, But Highest Housing Construction Level Since November 2008
By Anuradha Kher, Online News EditorWashington, D.C.–Multifamily starts have fallen again; this time by more than 25 percent, according to the Commerce Department’s latest report. With no clear trend in sight, starts for June were at 101,000 units, which is a 28.6 percent drop when compared to May and a 74.8 percent drop year over year. There was a brief uptick in May when starts were at 143,000 units over April’s 80,000 units. In January they were 118,000, February saw an increase to 204,000 but in March they were down again to 129,000 units. Overall however construction was started on…
New Firm to Help Clients Capitalize on Self-Storage Distress and Then Some
By Barbra Murray, Contributing Editor Two real estate industry finance veterans have come together to create Davies Ingersoll Capital Partners, a firm offering debt and equity solutions, as well as investment opportunities to clients across the country, with a particular focus on the self-storage sector. Jim Davies, a former senior vice president and shareholder of Buchanan Street Partners, as well as was a co-founder and principal of leading storage finance concern Buchanan Storage Capital, is the firm’s president, while Peter Ingersoll, managing director of real estate services firm Sperry Van Ness/Davies Ingersoll, is on board as CEO. Newport Beach, Calif.-based…
Nation’s Largest LEED for Homes Multifamily Community Now Open
By Erika Schnitzer, Associate EditorBayonne, N.J.—Trammel Crow Residential’s 544-unit Alexan CityView, the largest LEED (Leadership in Energy and Environmental Design) for Homes multifamily community in the country, is officially open. Move-ins began in April and the community is 13 percent leased.“The key to being successful is making a commitment to the LEED program early on in the design process. Once your architecture gets too far along, it’s difficult to incorporate some of the LEED requirements,” Richard Murphy, managing director of Trammel Crow Residential, tells MHN.Trammel Crow worked with the NJ BPU (New Jersey Board of Public Utilities), the New Jersey…
TODAY’S DEALS: Love Funding Closes $7M-Plus Refi Loan, and Other Transactions
By Anuradha Kher, Online News EditorSterling Heights, Mich.–Love Funding recently closed a $7,327,000 refinance loan for Sterling Lake Apartments, a 261-unit multifamily complex located in Sterling Heights, Mich. Love Funding secured the funds using the HUD 207/233 (f) loan program for the borrower, LR Management. Terms of the deal include a 5.5 percent interest rate and a 35-year amortization.Sterling Lake Apartments features one and two-bedroom apartment and townhome units. Amenities include a 24-hour fitness center, swimming pool and a well-equipped clubhouse. As a testament to its aesthetic value, the city of Sterling Heights honored Sterling Lake Apartments with the “Best…
MULTI-HOUSING EXECUTIVES UPDATE: Bill Stahlke Abandons Retirement to Become President of Investments at Lane Strategic Investment, and Other Moves
By Anuradha Kher, Online News EditorAtlanta–Lane Co. has named Bill Stahlke (pictured) president of investments at Lane Strategic Investment LLC. His responsibilities include developing Lane Co.’s acquisition strategy and overseeing all of the firm’s acquisitions. Lane Co.’s primary equity partner is Lubert-Adler Partners L.P. The firms announced earlier this year that Lubert-Adler will provide $250 million for the acquisition, rehabilitation and repositioning of distressed properties, or properties held by distressed sellers. Initially the firm will focus on opportunities in the Southeast and Southwest. Stahlke came out of retirement to take the position. Before his retirement, he was president of Windsor…
Mortgage Rates Fall for Three Consecutive Weeks
McLean, Va.–The 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.7 point for the week ending July 16, 2009, down from last week when it averaged 5.20 percent, according to Freddie Mac’s recently released Primary Mortgage Market Survey (PMMS). Last year at this time, the 30-year FRM averaged 6.26 percent. The 15-year FRM this week averaged 4.63 percent with an average 0.7 point, down from last week when it averaged 4.69 percent. A year ago at this time, the 15-year FRM averaged 5.78 percent. This is the third consecutive week that the rate fell. The 30-year FRM…
TODAY’S DEALS: KeyBank Real Estate Provides $16.5M from $200M Fannie Mae Credit Facility
By Anuradha Kher, Online News EditorStatesboro Ga. and Columbus, Ohio–KeyBank Real Estate Capital recently provided $16.5 million from an existing $200 million Fannie Mae structured credit facility extended to Campus Apartments in January 2008. Consistent with the original terms of the facility, Key provided a $14.6 million variable rate DMBS advance for Campus Crossing at Statesboro Ga. and $1.9 million for The Seneca in Columbus, Ohio. Campus Crossing at Statesboro is a garden student housing property consisting of 600 beds in 168 units. Built in 2008, Campus Crossing at Statesboro serves Georgia Southern University. The Seneca was formerly the Seneca Hotel,…
MARKET SNAPSHOT: Could There Be Signs of a Recovery in New York?
By Erika Schnitzer, Associate Editor New York—Manhattan may be showing some signs of a recovery, according to CORE’s Quarterly Real Time Report, Second Quarter 2009, a culmination of snapshots of current market inventory, pricing and absorption. However, whether this is due to seasonal activity or pent-up demand remains to be seen, notes Shaun Osher, founder and CEO of CORE Group Marketing LLC, a boutique luxury real estate firm specializing in resales, new development sales, marketing and rentals.The report shows that the Manhattan residential market is in a stage of absorption recovery; June 2009 had more than four times the volume…
Q&A with General Aharon Zeevi Farkash: Multifamily Buildings Not Adequately Secure to Handle Risks Facing Us in 21st Century
General Aharon Zeevi Farkash, a security expert who previously served as head of Israeli Military Intelligence, established FST21 in 2007 with the mission of providing preventive security solutions to increase safety and enhance tenant quality-of-life in residential, commercial & mixed-use buildings. He is the chairman & CEO of FST21 Ltd. based in Tel Aviv, Israel.Farkash talks to MHN Online News Editor Anuradha Kher about the importance of security in multifamily buildings and the new technology developed by his company that provides security through face, voice, license plate and behavior recognition. MHN: What is the reason security needs to be considered…
EDITOR’S NOTE: ‘TCAP’ and ‘Exchange Funds’ Explained
By Keat Foong, Executive Editor Among the multifarious areas to which the government will direct money under President Obama’s economic stimulus package (The American Recovery and Reinvestment Act of 2009) is tax credit housing. The Low Income Housing Tax Credit (LIHTC) program has been suffering from a fall-off in investor equity owing in part to the fact that financial companies no longer needed tax credits now that they were experiencing losses in the midst of the financial crisis. This is where the two programs under the Act—the Tax Credit Assistance Program (“TCAP”) and the Low Income Housing Tax Credit Exchange…