News

New York–Changes to federal tax regulations have made housing commercial tenants in New York co-ops more profitable than ever, The New York Times reports.Previously, because of the 80-20 rule–which requires residential co-ops to receive no more than 20 percent of their gross income from external sources, such as commercial tenants, in order to receive tax benefits–co-ops have rented commercial space at low rents and often given thousands of dollars in refunds to tenants at the year’s end.However, the law was modified last year to allow all co-ops to keep their benefits–and rental income. “This change will be a bonanza for…

London–Gross mortgage lending in the U.K. hit its lowest level since May 2005 last month due to tough lending situations and low confidence in the housing industry, according to data from the London-based Council for Mortgage Lenders.Gross mortgage lending dropped to £22.6 billion in December, 25 percent below November’s lending volumes. Although the housing market is often slow at the end of the year, lending volumes usually only decline 6 percent between November and December, The Financial Times reports.Members of the Council for Mortgage Lenders assume roughly 98 percent of U.K. residential mortgage lending. The council’s figures are viewed as…

Shanghai–The president of the China’s sixth-biggest bank said Chinese bank earnings will likely be lower this year because of the government’s attempt to slow the economy and the U.S. subprime mortgage crisis, according to The Guardian.”We have to be very realistic: We are facing many challenges this year which are not only from home but also abroad,” China Merchants Bank Co. President Ma Weihua told Reuters Monday.China Merchants Bank Co. sold the U.S. subprime-related investments it made in 2004 two years later for 13.4 percent returns. However, China’s larger, state-owned banks–including the Bank of China–might not fare as well.Bank of…

By Anuradha Kher, Online News EditorFederal Way, Wash.–Fairfield Residential, a privately held real estate operating company, recently bought Glen Park, a 464-unit community spread across 33 acres at West Campus in Federal Way, Wash. for $65.5 million.Apartment Realty Advisors (ARA), a multi-housing brokerage and advisory company, executed the transaction on behalf of Fairfield Residential. “The acquisition of this institutional quality asset, in the much-sought-after Puget Sound area, provides an excellent repositioning opportunity for Fairfield Residential and aligns well with their overall investment strategy,” says ARA Vice President Jim Claeys.Glen Park, located 25 miles south of downtown Seattle, includes a mix…

By Anuradha Kher, Online News EditorAlexandria, Va.–Trammell Crow Residential (TCR) is developing a 2.8-acre 280-unit rental apartment community called Alexan Carlyle, located at 800 John Carlyle St. in the Carlyle neighborhood of Alexandria, Va.Alexan Carlyle is a $94 million joint venture between TCR and Olayan America Corp., with construction financing provided by PNC Bank. This is TCR’s latest luxury apartment development in the Washington D.C. metropolitan area. It will have feature stories and amenities will include a pool, clubhouse, exercise room, billiards room, business center and more. Designed by Cubellis DCA, the building incorporates three distinct architectural styles. One portion…

By Anuradha Kher, Online News EditorWashington, D.C.–The National Multi Housing Council (NMHC) has presented its second annual Good Neighbor award to Braintree, Mass.-based John M. Corcoran and Co. and Atlanta-based Post Properties.The Good Neighbor award, instituted last year, honors apartment owners and managers with a good record of community service and philanthropy. The award of $10,000 is split evenly between the winners’ charities.John M. Corcoran and Co. received this honor for its support of the St. Mary’s Women and Children’s Center in Dorchester, Mass. and Post Properties won for its charitable arm, the Post HOPE Foundation.“Between the two companies, it…

By Anuradha Kher, Online News EditorIrvine, Ca.–The Urban Land Institute’s newly released book called Developing Sustainable Planned Communities outlines strategies to design and develop sustainable planned communities that are environmentally responsible, attractive to the market and profitable. The book, which eight sustainability experts contributed to, is a practical guide with case studies that cover green practices in urban, suburban and rural settings.“The authors trace the evolution of planned communities over the last 40 years with case studies illustrating how the definition of sustainability has changed over that period of time, what it is today and how it can be implemented,”…

Naperville, Ill.–Phoenix-based multifamily sales and research firm Hendricks & Partners recently sold a 280-unit apartment community in Naperville, Ill. for $39,200,000.The Lincoln National Life Insurance Co. of Fort Wayne, Ind. sold Thornberry Woods to a fund managed by UBS of Hartford, Conn. Art Wadlund of the Tucson, Ariz. Hendricks & Partners office and Ralph DePasquale of the Chicago office negotiated the transaction on behalf of Lincoln.Constructed in 2002, Thornberry Woods consists of 14 two- and three-story buildings with 260,190 square feet of rentable living space.The complex’s one- and two-bedroom units feature kitchens with maple cabinets, modern bathrooms with laminate flooring,…

By Erin Brereton, Content ManagerSt. Maarten–At the new Westin St. Maarten Dawn Beach Residences in St. Maarten, the adjacent Westin resort will offer condo owners a hotel guest experience–and guests will provide funding to offset owners’ mortgage costs.Ninety-nine condominiums are planned for the Dutch side of the Caribbean island. The units will be part of Westin’s five-year leaseback program, in which owners provide a 25 percent downpayment, and Westin secures financing for the remaining portion of the condo purchase price. The resort then rents the units to hotel guests, generating income to contribute to the owners’ monthly mortgage payments.The 1,654-square-foot…

Hong Kong–Based on the relaxed real estate markets in two of China’s biggest cities, the Chinese government’s plan to ease real estate investments appears to be successful, The Wall Street Journal reports.New home prices in Shenzhen, a southern town of nine million next to Hong Kong, fell 8 percent from September to the end of 2007, according to global real estate adviser DTZ. In China’s third-largest city, Guangzhou, new home prices dropped 9.9 percent in November from a high of 11,574 yuan ($1,600) a square meter in October.After several years of growth, real estate in Shenzhen faltered in summer as…