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As CAP rates rise, property managers and owners are looking to adjust to their current realities. The economic and financial crisis has forced owners to change course and look to plans B and C. In many cases, the proposed cash out year of 2009 has been pushed back to at least sometime in 2010 at the earliest, based on a new owner’s ability to obtain financing. So what does plan B and C look like? For many, this concept was never thought of upon acquisition. But that is okay. It is never too late to change direction and tact for…

Spotlight on Operations Track A recent assessment by the Wharton School shows a dramatic surge in economic losses from natural catastrophes worldwide, up from just over $50 billion in the 1950s to almost $800 billion in the 1990s. William Gray, a forecaster and the head of the Tropical Meteorology Project at Colorado State University, warns that the probability of a major hurricane striking the U.S. Coast is estimated at 74 percent, compared with the average of 52 percent over the past century. Recently MHN talked to Michael Payton, senior vice president of CAS Partners Insurance Services, the parent company of…

In announcing the proposed Department of Housing and Urban Development (HUD) budget this week, HUD Secretary Donovan seemed to affirm a shift in direction from the Bush years—towards a renewed emphasis on rental housing. Speaking in a teleconference to reporters, he said that the focus has been missing for “too long” from rental housing. He commented that we have had “accelerated disinvestment in key housing and community efforts” in the country in the past few years. And that we have had “a housing policy focused almost exclusively on homeownership at the expense and/or neglect of rental housing as a part…

The state of mind to which I am referring when I mention “conviction” in this blog space is that “of being convinced,” according to my World Book dictionary. To take a position on something that may seem edgy, counter-cultural, annoying, or whatever the counter-intuitive flavor of the week happens to be, requires more than a casual commitment. To stand in the face of opposition, baby, you gotta’ believe!   Last week I regaled you with my story of finding a way to take the office kitchen wastes home on the train. Hopefully that struck as many of you as being…

The nation’s economic data has turned from a seemingly endless parade of bad news, to more of a mixed bag as of late, with some positive (or relatively positive) readings sprinkled in among the doom-and-gloom. The dichotomy is of course providing optimists and pessimists alike with plenty of grist for their respective mills. We’ll try to keep a clear-eyed view of things. April saw retail sales continue their slump as consumers kept their purse strings tight on non-essential purchases. According to a Commerce Department report, retail sales sagged 0.4 percent during the month; but for those apt to look on…

No, I’m not talking about the criminal kind, though some might consider the following story to be crazy. I’ve wanted to talk about this for a while. The tipping point probably occurred when my need to transport the compost bucket from my house to the office AND take the train collided and demanded resolution. I live about 40 miles from my downtown LA office. As often as possible, I take the train to Union Station, transfer to the subway, and emerge about a five-minute walk from the office. WHEN I don’t have to drive out of the transit zone for…

The next time you’re in Phoenix, I highly recommend taking a ride on the newly opened light rail. Whether your niche involves marketing apartment communities, financing them or building them (or, like me, reporting on them) I’d say checking out public transportation options from time to time is a no-brainer. It’s interesting to see the backbone of future transit-oriented development in action. I didn’t intend to research the Metro Light Rail ($2.50 for a day pass) while in Phoenix for the NAA’s green conference, but it turned out that my hotel was much closer to the airport than to downtown….

What’s everywhere, practically invisible and costs $15 billion each year?   Energy in New York City buildings! New York City Mayor Mike Bloomberg, along with Council Speaker Christine Quinn, recently announced plans to reduce greenhouse gas emissions from existing residential, commercial and government buildings. As MHN has reported, the proposed legislation is aimed at encouraging developers to meet tougher energy requirements any time they renovate, to conduct an energy audit every 10 years, and to make energy improvements that will pay for themselves within five years. (Click here to read MHN’s story.) According to the city, the energy improvements could…

The debate continues about whether apartment residents will pay more for green living, but c learly demand is growing within certain demographics and interest is quickly spreading to others. And it’s on all of our minds. Recently NMHC’s Kim Duty shared an interesting article “Green Renting: Tenants Desire Eco-Friendly Digs” with members of our newly launched MHN Forum at LinkedIn. In the meantime, the number of properties offering a nod to green living keeps growing. So much so that the National Apartment Association hosted a new niche conference devoted to this topic last w eek. One attendee, a small property…

Ah, it’s the last day of my (brief) “staycation.” I’m sure you can relate to the idea of having a huge list of things to do and only accomplishing a few of them. How does this happen? The simple answer is that those of us who plan to do things are in a select group—those always thinking ahead of the next thing(s) to accomplish, and laying out a plan for how they are to be done. It all sounds so easy on paper. If your universe is parallel to mine, what you have been experiencing lately is a scrambling from…