Blog
In the Shadow of the Financial Crisis
By Keat Foong, Executive Editor Phew! What a week! Our very own event Multi-Housing World 2008 Conference and Exhibition was held in Denver last week. Within less than a week—a week—prior to the conference starting, the following happened: The government took over Fannie Mae and Freddie Mac, Lehman Brothers collapsed, and the sale of Merrill Lynch was announced. And on the day the conference began, on Wednesday, the newspapers were filled with reports of the government bailout of insurance giant AIG. The next day, the stock market plunged. And by the end of our three-day educational and networking get-together, the…
“Capital Insights” with Jack Kern
I’m Going With Mickey on This One… There are a lot of economists and frequently quoted business commentators who are out there forecasting the recession, or their view that we’re not in one yet… Even venerated Sam Zell, senior scion and master of the multifamily industry commented recently that he thought we might slip into a recession next year. Jack Welch, former General Electric chief is saying he thinks we’re headed for a deep recession with the first quarter of 2009 being the toughest. The President said without the bailout package, we’re going to suffer. This just in on the…
“Capital Insights” with Jack Kern
Sooner or later everyone comes to Rick’s Place… Woman: What makes saloonkeepers so snobbish? Banker: Perhaps if you told him I ran the second largest banking house in Amsterdam. Carl: Second largest? That wouldn’t impress Rick. The leading banker in Amsterdam is now the pastry chef in our kitchen. Banker: We have something to look forward to. (c) Casablanca – 1942— The Federal Government is about the embark, one way or another on one of the largest taxpayer led bailouts of the century. I was going to wait to really comment on this until the dust settled because as of…
“Capital Insights” with Jack Kern
The Taxman is Hungry For a long time now, commercial properties, especially apartment owners have had a peaceful relationship with most taxing authorities. The cities recognized that apartments were good housing for their residents and wanted to appear to have a balanced housing policy. Apartment developers obliged by adding units and taking advantage of local subsidies or other incentives. It appears that all bets are off. Acccording to a recent report by the National League of Cities detailing "City Fiscal Conditions," home price declines, increasing expenses at the municipal level and decreasing assessments have wrought havoc with city budgets. In…
Conclusion: Do Not Sell
By Keat Foong Speakers at a panel at the Multi-Housing World 2008 Conference and Exhibition held in Denver came down squarely against placing apartment properties on the market. The session was titled Apartment Investment Cycle: Is it Time to Sell, Hold or Buy? "Do not sell unless you have to," said Ronald Brock, president and CEO, Pierce Eislen Inc. "This is not the time to be selling." "Do not sell. This is not the time to be a seller," said Keith Rosenthal, co-founder and president of Phoenix Realty Group, echoing Eislen. Brock, a market researcher, said rental apartment conditions are…
Good News From Multi-Housing World 2008
Good news about the real estate market has become less and less frequent. While most in the industry still paint a fairly positive picture for the multi-housing industry, truth is that debt and equity capital is becoming more and more scarce with each new devastating headline coming out of Wall Street. And there are plenty of other concerns in the industry, which we will cover on our website. But we think we have found some good news to share with you… Multi-Housing executives still have a great deal of enthusiasm when it comes their businesses and certainly when it comes…
“All Aboard” with Erika Schnitzer
Financial crises…soaring gas prices…How does transit-oriented development fit into the bigger picture? As a native of the metro New York City area, public transit is nothing new to me. But perhaps I’m naïve. As I sat listening to Bill Sirois, manager, TOD for the Regional Transportation District RTD) in Denver this morning, I began to realize just how crucial TOD truly is in today’s society and how far some of our nation’s cities have come in recent years. The large turnout for Multi-Housing World’s Denver TOD bus tour clearly reflected this importance, as well as an eagerness to see what…
“CAPITAL INSIGHTS” with Jack Kern
Beware the Ides of September? What a difference a couple years can make. Between Bear Stearns becoming a term of art, as in "he got Bears Stearned," and now the news being overrun with banks failing (as many as 20 with more on the way), it just got more interesting. In the interest of full disclosure, I used to work someplace that was taken over by Lehman Brothers Holdings, so no, I’m not bitter. (Ha, Ha, Ha, Ha, oops, I mean, gee what a shame…) It’s important to remain neutral, so I’m going to share something that might surprise some…
The Calm Before The Selling Storm
According to recent National Association of Realtors (NAR) predictions, the level of overall home sales–including multi-housing–is forecast to show little movement in the coming months. The NAR’s Pending Home Sales Index dropped 3.2 percent from June to July–even with June’s reading being revised to 89.4. (The original reading was thought to be 89.0.) However, the anticipated calm period isn’t necessarily a bad thing. Sales rise, and sales decline–but when considering the big picture, many in the industry feel home sales will soon increase. NAR’s Managing Director of Quantitative Research Jed Smith told MHN that while sales fluctuate from month to…
THE ESSENTIAL KITCHEN by Kevin M Henry
Among the great chefs of the world, it is widely believed that the success of a meal depends on the color of its ingredients. I have always believed, as well, that color is the essential ingredient to create the ideal kitchen, a playground to experiment with your tastes, your senses and your personal style without restriction. Color provides sensation, mood and personality. The colors we choose for our kitchen reflects the way we look at life. From the passionate feelings created by a ruby-red to the soothing qualities of powder-blue, from the crispness of an acid-green to the exhilaration of…