News
How Construction Contracts Can Help to Mitigate Fraud During the Payment Process
By Erika Schnitzer, Associate EditorChicago—With construction contracts becoming more cost-based and billed up to a guaranteed maximum price, owners must assume more responsibility for monitoring construction costs, asserted Jim Schmid, CPA, CFE, national construction advisory services practice leader for Grant Thornton LLP, at a recent Webcast, “Construction Contract Terms Critical to Mitigating Fraud During the Payment Process.”Owners should be involved with the first payment application, first change order and first schedule of values in order to set a precedent. Schmid warned against waiting until the end of the project to do a final audit, as he noted that it is…
Green: the Universal Color of School Spirit
By: John Beck, Carrier Johnson + CULTUREToday, green has become a universal benchmark for college and university building design and planning, campus-wide programs and student organizations. More so now than ever before, academic communities are catching the “green spirit,” taking on the challenge to make healthier environments, reduce energy consumption and inspire a connection to the outdoors. Click here for a slideshow of Pitzer College’s residences and UCSD’s North Campus Transfer Student Housing, Phase 2.Pitzer College, Claremont, Calif. For Pitzer College in Claremont, Calif., social responsibility and environmental stewardship have long been a part of the educational objectives. According to…
NWP’s New Business Intelligence Data Warehouse for Utility Management is Useful for Small to Large Multifamily Portfolios
Irvine, Calif.–NWP Services Corp. (NWP) has introduced a new Business Intelligence Data Warehouse, called ConsumptionSmart, now available as an additional feature with the company’s UtilityPay Manager product offering. “Data warehouse/business intelligence applications have become an integral part of the multifamily housing industry landscape,” says Jim Charles, senior vice president of product management and engineering. “Property managers want a flexible decision making and planning utility data infrastructure that supports their utility management requirements, and that is where NWP helps. “With ConsumptionSmart’s data mining capabilities, customers go beyond simple query and reporting capabilities to incorporate predictive power in utility expense management decisions,” adds…
INSIDE THE DEAL: Johnson Capital Provides Interest-Only, Cash-Out Refi at 3.32%
By Keat Foong, Executive Editor Goleta, Calif.—Loans financed before the mid- to late-2000s are the ones that will be refinanced more easily because they have had time for adequate price appreciation, correct? In the case of Oasis Apartments, that is true. Kevin Burkhalter senior vice president at Johnson Capital’s Los Angeles office funded $10,500,000 in permanent financing for the privately held entity that owns the 125-unit garden-style apartment property.Johnson Capital also provided the refinancing at very favorable terms. Taking advantage of the currently low adjustable rates, the owner replaced the 8 percent interest on the former loan with a 3.32…
Multifamily Starts Up Slightly, But Sector to Remain Weak for a While
By Anuradha Kher, Online News EditorWashington, D.C.–Multifamily starts were up again in May after a sharp drop in April, according to the Census Bureau’s latest report. On a seasonally adjusted basis, starts stood at 124,000, which is an increase of 77.1 percent from April but still down 58.6 percent when compared year-on-year. The multifamily as well as overall housing starts have been falling consistently this year, reaching a new low of 70,000 in April. Overall housing starts in May went up to 532,000. This is 17.2 percent above the revised April estimate of 454,000, but is 45.2 percent below the…
Thermostatic Shower Valves from JACLO
JACLO’s new collection of ½-in. Thermostatic Shower Valves in both traditional and contemporary styles automatically adjusts the mixture of hot and cold water to avoid scalding in the event of pressure changes, and will shut off if the cold water supply is interrupted. The JACLO ½-in. Thermostatic Valve’s temperature limit can be preset, making the product ideal for children’s and senior’s baths. In addition, the Thermostatic Valve offers more accurate temperature control, and its high-flow capability is greater, making them the ideal choice for multiple device shower systems with body sprays, handshowers and tub fillers. They are also eco friendly…
TODAY’S DEALS: Freeman Webb Acquires Property at 43% of Loan Amount, and Other Transactions
By Anuradha Kher, Online News EditorTempe, Ariz.–Hendricks & Partners has arranged the sale of Villagio, a 472-unit apartment community in Tempe, Ariz. for $20,250,000.Constructed in 1983, Villagio features 472 units in 49 one-, two-, and three-story, garden-style rental buildings situated on 22.5 acres. The property was a recently foreclosed asset (foreclosure completed in January 2009). Villagio recently underwent numerous exterior and interior capital improvements (to 259 units) including cabinet re-facing, fresh paint, hardwood-style and carpeted flooring, all electric kitchen with new black appliances, new washers/dryers in select units, asphalt for parking lots, clubhouse upgrades, landscaping and model upgrades.Located at 1133…
$325M South Fla. Mixed-Use Community Receives Approvals
By Erika Schnitzer, Associate EditorDelray Beach, Fla.—CDS International Holdings Inc. has received approvals for its Atlantic Plaza II, a planned $325 million mixed-use community that will transform two city blocks in Delray Beach, Fla. Sitework for the initial phase of the project is slated to begin this summer. The 8.5-acre site will include 197 apartments and townhomes, 132,000 square feet of retail space, 106,000 square feet of Class A office space and subterranean parking for more than 1,000 cars. CDS International Holdings originally owned the existing Atlantic Plaza retail center on the east side of the site and planned the…
Company to Help Banks with Non-Performing Multifamily Construction Loans
By Anuradha Kher, Online News EditorSummit, N.J.–Diversified Properties has formed a partnership with industry veteran Jonathan Stein to form Diversified Realty Advisors (DRA), a real estate advisory and turnaround group providing lenders with interim portfolio or individual asset management services during the workout or foreclosure stage, as well as long-term strategies such as asset and construction management, acquisition support and disposition services. “Our primary focus is to provide advisory services to banks on their non-performing assets, most of which happen to multifamily construction loans,” Nicholas Minoia, partner of DRA, tells MHN. “We help the banks in either restructuring the loan…
Owners Should Pass More Company Shares to Heirs Today, Says Advisor
By Keat Foong, Executive EditorRaleigh, N.C.—Now is the time for gift giving and estate planning, according to a consultant to the real estate industry. Owners of companies intending to continue as family businesses should take advantage of depressed values in the recession to pass more of the companies’ ownerships to future generations, suggests Curt Young, senior associate of the Investment Banking Group at FMI.“You can effectively give more assets because the values are depressed, under the premise that the economy and valuations will recover,” says Young. “It is very common in the construction industry, including multifamily, to see these economic…