ARA Launches National Manufactured Housing Brokerage Group
By Anuradha Kher, Online News EditorAustin, Texas–Atlanta-headquartered Apartment Realty Advisors (ARA) has launched its National Manufactured Housing Group in Austin, Texas. Andrew Shih based in Austin and Todd Fletcher based in Chicago will be part of the transaction execution team.Shih has been with ARA since 2008, and was the Texas representative for CBRE’s manufactured housing group prior to joining ARA, while Fletcher was responsible for acquisitions and dispositions of manufactured housing communities for Hometown America, the largest privately held owner and operator of manufactured housing communities in the U.S. “This is an especially interesting asset class that has been overlooked…
Multifamily Mortgage Delinquencies Increase in Q1 2009
By Anuradha Kher, Online News Editor Washington, D.C.–The weakening economy and continued credit crunch led to increases in commercial/multifamily mortgage delinquencies during the first quarter of 2009, according to the latest Commercial/Multifamily Delinquency Report, released by the Mortgage Bankers Association (MBA). “Multifamily mortgage delinquency rates continued to rise in the first quarter,” says Jamie Woodwell, vice president of commercial real estate research at MBA. “Delinquency rates on multifamily mortgages held by banks and thrifts, by Fannie Mae and in commercial mortgage-backed securities (CMBS) are all now at levels higher than at any time since the 2001 recession. First quarter delinquency rates on…
INSIDE THE DEAL: Alliant Capital Provides Borrower with Cash-Out, Interest-Only Refinance
By Keat Foong, Executive EditorTucson, Ariz.—Unlike construction financing, refinancing is still relatively plentiful for multifamily housing in today’s markets. But only if certain criteria are met. Here is an example of one transaction, completed by Alliant Capital LLC, that works. Alliant Capital supplied $5.5 million for the refinance of Cottonwood Creek, a 102-unit townhouse community in Tucson, Ariz. The 10-year Fannie Mae loan carries a 5.71 percent rate, and a two-year interest-only feature. The original loan on Cottonwood Creek was first taken out about 10 years ago—before many of the high-leverage loans were made in the bull-run of the past…
Minwax Introduces New Low-VOC Formulations
Minwax has expanded its line of low-VOC finishes with new formulations of the company’s polyurethane for floors and spar urethane. Minwax Super Fast-Drying Polyurethane for Floors, with a VOC level of 350, is an easy-to-use option for finishing hardwood floors. It is a clear, oil-based finish that requires no sanding between coats, offering a recoat time of six to eight hours, reportedly faster than any other available 350 VOC polyurethane. It is available in Gloss, Semi-Gloss, and Satin finishes and features an anti-settling formula that provides a smooth, even sheen. The company’s water-based Helmsman Spar Urethane, with a VOC level…
Acquisition Strategy
Pacific Property Assets (PPA) provides long-term affordable housing, enabling investors to invest via secured promissory notes backed by existing apartment buildings. MHN Executive Editor Keat Foong talks to Michael Stewart, CEO, about the effects of the economic crisis.How has your value-added acquisition strategy changed? We are still looking at value-added properties. Most fall into the current status of Class C to Class D properties. The principal change is that today we are looking at properties that typically have greater issues with vacancy and deferred maintenance. We have not changed our expectation of excellent returns. PPA is still looking for capitalization…
Construction Conundrum
By Anuradha Kher, Online News EditorSince the credit markets froze last year, the multifamily sector has suffered great pains. While financing for acquisitions and refinancing loans has been far easier in the apartment sector with Fannie Mae and Freddie Mac stepping in, the story of construction financing has mirrored that of the other commercial real estate sectors. New construction has all but halted nationwide, primarily due to lack of credit sources. Also, a drop in demand and the resulting increase in vacancy rates have put an overall dampener on the entire sector.With the fundamentals of the multifamily sector heavily dependent…
Money Matters
By Christopher Hosford, Contributing EditorEffective resident payment technologies do more than just get money in the door. Providing residents with efficient, flexible ways to pay their rent can be an excellent customer-service, as well as a resident-retention and new-customer acquisition, tool.Today, there are some intriguing new innovations in rent-payment technology that can make the process even more useful to both communities and their residents.”Having a multimedia approach to payment is critical to the success of rent-payment programs,” says Mike Radice, president and CEO of NWP Services, a leader in utility cost recovery and a player in the rent-billing arena. “It…
2009 Product Choice Award Winners
Multi-Housing News is proud to present the 2009 winners of our Product Choice Award: Manufacturers whose products and services provide exceptional value, materials quality, design innovation and customer care.Winning a Product Choice Award takes on a special significance this year. With credit sources tight and many projects on hold, there is even greater competition among manufacturers to “get the business” and be specified for those projects that are moving forward. The pressure is across the board. Project managers and architects must scrutinize every expenditure and material specification to an unprecedented extent—whether it’s for new construction, expansion, or renovation of an…
Turning Over Units
By Erika Schnitzer, Associate EditorWith summer about to officially begin, the peak season for apartment turnover is here. With rising vacancies, it is tempting to turn over apartments as fast and inexpensively as possible, but it is equally as important not to sacrifice quality in this market. First, walk through the apartment with the present resident before he moves out, notes Lisa Trosien, multifamily speaker, trainer and consultant. It will not only “alert you to any significant repairs that need to be made,” but will also “prep that outgoing resident for any charges they may incur,” which is critical to…
Market Forecast: Northwest
By Erika Schnitzer, Associate EditorAccording to the Urban Land Institute (ULI)’s “Emerging Trends in Real Estate,” the top two most promising markets for 2009 were Seattle and San Francisco. Now, midway through the year, these markets are facing their own set of problems—though industry experts do maintain that they have the potential for a strong recovery.The Northwest’s increasing unemployment rate, compounded by big run-ups in rent over the past several years, as well as the huge supply expansion, has hurt the region considerably during this economic downturn.The major cities in the region—San Francisco, Seattle and Portland—are “contracting at an annual…