MARKET SNAPSHOT: San Diego Transaction Activity Indicates Market May Have Bottomed Out
By Erika Schnitzer, Associate EditorSan Diego—San Diego’s apartment market has shown recent signs of stabilizing, according to a new Cushman & Wakefield Special Annual Report. The report highlights countywide average per unit sales prices since 1986, along with six years of prices for 33 city and county areas. The report shows that there were 456 sales transactions in 2008, down from 482 sales in 2007 and down 66 percent from 2004. Despite this decline, the market may be bottoming out as the percent decrease from 2007 to 2008—just 5.4 percent—is a significant improvement compared to the 27.2 percent, 28.6 percent…
Three FHA Lenders Suspended by HUD for Violations
Washington, D.C.–The U.S. Department of Housing and Urban Development’s Mortgagee Review Board has suspended three lenders based on evidence of serious violations under HUD’s regulations. The three lenders are Golden First Mortgage Corp of Great Neck, N.Y., Great Country Mortgage Bankers, Inc. of Coral Gables, Fla. and Beneficial Mortgage Corporation of San Juan, P.R. They are now prohibited from originating new FHA-insured mortgages pending completion of HUD’s investigation into their lending practices.The Board found that Golden First Mortgage (GFM) failed to notify HUD/FHA of an investigation by the Office of Thrift Supervision (OTS) into the business activities of the company’s…
EDITOR’S NOTE: Worse Is Yet to Come
By Keat Foong, Executive Editor If you have been reassured by President Obama’s calm demeanor and are feeling more relaxed these days, there is an opinion article in a recent issue of The New York Times entitled “ The Economy is Still at the Brink.” In case you miss the point, an illustration accompanying the article says, in big, black, artistic, letters, “The Storm Is Not Over, Not By A Long Shot.” In the multifamily sector specifically, if the number of outfits being created that are specializing in turnarounds is any indication, players may be expecting the trickle of distressed…
Alliance Residential Opens Leasing for Recently Bought Condo Conversion
By Anuradha Kher, Online News EditorSeattle–Alliance Residential Co. recently added the Broadstone Domaine project to its property management portfolio. The company has completed condo conversion on the 91-unit apartment community in Seattle, which is now open for leasing.Located at 2480 and 2483 Birch Ave. North, in the Queen Anne neighborhood, the newly built property had not sold any of the units prior to Alliance buying it. “Units in a number of for-sale projects in Seattle, as in other parts of the country, are not selling at the price that builders initially expected,” Kelly Hughes, VP of Operations, tells MHN. “Which…
HUD Launches ‘Recovery Act in Action’ Week in Chicago
By Anuradha Kher, Online News EditorWashington, D.C.–The U.S. Department of Housing and Urban Development, along with the city of Chicago, recently launched HUD’s “Recovery Act in Action” Week, along with $143 million in Recovery Act funds, in order to improve Chicago public housing, create jobs and jumpstart the local economy. The announcement marks the first day of HUD’s “Recovery Act in Action” Week, which is dedicated to communication with HUD’s stakeholders, grantees, staff and partners about the funds that are available for competition and Recovery Act program implementation. The week will include three days of webcasts that will provide education…
INSIDE THE DEAL: A ‘Grade A’ Helps Sell Louisiana Apartment Asset
By Keat Foong, Executive EditorLafayette, La.—The sale of Grand Pointe Apartments provides an example of the kinds of transactions that can take place in a down market—in which a strong market and high quality asset can help facilitate any deal. Apartment Realty Advisors (ARA) brokered the sale of the Class A luxury apartment community based here by the Mississippi-based regional developer of the property. On behalf of ARA’s Secondary Markets team based in Austin, Texas, Matt Heininger represented the developer. The buyer was an Omaha-based national investment corporation which owns and manages apartments throughout central U.S. “Despite the current difficult…
KTGY Designs Affordable Housing for Jamboree in Irvine
By Anuradha Kher, Online News EditorIrvine, Calif.–The Granite Court Apartment Homes in Irvine, Calif. are all set to open this July. Designed by KTGY GROUP, INC., Architecture and Planning and developed by Jamboree Housing Corp., Granite Court is an affordable housing community for families earning between 30 percent and 60 percent of the area median income. Granite Court features 71 units with 20 one-bedroom, 20 two-bedroom, and 31 three-bedroom apartments. Granite Court is situated on 1.23 acres in the city’s urban core at 2853 Kelvin Ave. in Irvine with a design that’s green, smart growth, modern, compact, with four stories…
First Joint-Use Housing/School Development in L.A. Completes Entitlement Process
By Erika Schnitzer, Associate EditorLos Angeles—Abode Communities, in collaboration with the Los Angeles Unified School District (LAUSD), has completed construction documents for Glassell Park, a new joint-use community that will co-locate housing and an LAUSD school on the same site, the first development of its kind in Los Angeles.“This program was thought of as an opportunity to utilize surplus land to produce housing, if possible for the workforce,” explains Robin Hughes, president and CEO of Abode Communities. “It’s an initiative that allows the school district to support affordable housing and workforce housing for district employees.”Hughes tells MHN that the Southern…
Three Gables Residential Communities Receive EarthCraft Multifamily Certification
By Erika Schnitzer, Associate Editor Atlanta—Gables Residential has received EarthCraft Multifamily certification for three new apartment communities. The EarthCraft program is a residential green building program of the Greater Atlanta Home Builders Association in partnership with Southface. In addition to achieving the certification, the company received the 2009 EarthCraft Multifamily Developer of the Year.“The City of Atlanta has a program that [will incentivize] developers to build toward a green standard,” Joe Wilber, senior vice president of investments for the East, tells MHN. “We feel like we are pioneers in the city because we did it without incentives being offered and…
TODAY’S DEALS: Hendricks & Partners Arranges Sale of 210-Unit Affordable Housing Portfolio for Over $8M, and Other Transactions
By Anuradha Kher, Online News EditorMadison, Wis.–Hendricks & Partners’ National Affordable Housing Group has arranged the sale of the 210-unit Wisconsin Affordable Housing Portfolio (pictured) for $8,068,000.The seller was Dunn County Realty Group (DCRG), Housing Development Services (HDS), and Housing Management Services (HMS) of New Richmond, Wis. and the buyer was WHPC- Dunn County, LLC, WHPC- Washburn County, LLC and WHPC- St. Croix County II, LLC of Madison, Wis.The 14-property portfolio was primarily developed as HUD Project-Based Section 8 housing for the benefit of qualified low-income elderly residents via Wisconsin Housing & Economic Development Authority (WHEDA) and USDA Section 515…