News
MHN Special: Austin Market Report with Nielsen-Claritas Research
displayGallery(123993);By Erika Schnitzer, Associate EditorAustin, Texas—known for its live music scene and enormous university—is a relatively young city, which makes it an ideal rental market. Ranked by Money magazine as the No. 2 Best Place to Live in 2006, Austin has continued to experience employment growth, with its government base helping to minimize the downturn, according to David Ward, executive vice president, regional investment director Southwest region for Post Properties Inc.Because of its relatively young demographic, Austin has “historically [had] a higher rental demographic versus home ownership,” asserts Ward. While the gap between renting and home ownership has narrowed in…
TODAY’S DEALS: NCB Arranges Over $57M in New Loan Originations, and Other Transactions
By Anuradha Kher, Online News EditorNew York–NCB has arranged over $57 million in new loan originations during the month of March for 24 New York area properties. The financings included $41.8 million in mortgages and $15.3 million in lines of credit. Some of the loans were:$11 million first mortgage for Midland Avenue Owners Corp. a 404-unit co-op located at 1296/1300/1304 Midland Avenue in Yonkers, N.Y. $4.5 million first mortgage and a $1 million line of credit for a 113-unit co-op located at 120 Central Park South in Manhattan$3.1 million first mortgage and a $900,000 line of credit for a 78-unit…
EDITOR’S NOTE: Prognosis for TALF: Not Good?
By Keat Foong, Executive EditorThe Term Asset-Backed Securities Loan Facility (TALF) was extended by the Obama Administration in February to provide government financing to private investors for the purchase of CMBS in addition to other types of asset-backed securities. At this point, signs that TALF would have a positive effect in reviving the conduits market may not be good. According to Sam Chandan, president and chief economist of Real Estate Economics LLC, in his Monday report of April 13, the results of the second round of funding from the government “raise serious questions about the viability of the TALF program in…
MARKET SNAPSHOT: Denver Vacancies Closely Match Unemployment Rates
By Erika Schnitzer, Associate EditorDenver—Vacancy increases in the Denver metropolitan area are on par with the market’s employment rate, according to Grubb & Ellis’ Multi-Housing Market Trends report for first quarter 2009. The approximate 2 percent rate of vacancy increase was closely correlated to the 2 percent increase in unemployment.“In terms of strength of the apartment market, Denver is relatively strong compared to most other medium to large markets in the country,” notes Steven Rahe, senior vice president of Multi-Housing Properties, Grubb & Ellis Co. In the first quarter of 2009, vacancies increased 112 basis points—up to 8.2 percent. While…
IREMJobs.org Joins Forces with RealEstateJobs.com, Jobs Posted on One Will be Posted On Other
Chicago–RealEstateJobs.com and IREMJobs.org, both job sites focused on real estate, have now come together to enable employers who post jobs on one site to receive duplicate coverage on the other at no additional cost. The collaboration benefits each of the company’s advertisers, giving the positions posted exposure to a significantly larger and more diverse pool of potential job candidates.Candidates visiting either site can post their resumes confidentially, respond to job postings, and receive related services free.IREMJobs.org was created in 2004 by the Institute of Real Estate Management (IREM) specifically for the real estate management industry and is powered by RealEstateJobs.com….
Public Housing Redevelopment in Sarasota, Fla. Leases First Batch of Units
By Anuradha Kher, Online News EditorMarlton, N.J. –The first phase of Janie’s Garden, a new, mixed-income multifamily community part of the Newtown Redevelopment plan in Sarasota, Fla. recently opened nine of its 86 units.The project is developed by the Sarasota Housing Authority and Michaels Development Co., and managed by Interstate Realty Management. Both Michaels Development Co. and Interstate Realty Management are affiliates of the Michaels Organization. The 86-unit, garden-style community, featuring both apartments and townhomes, is the first of the Sarasota Housing Authority’s multi-phase, multi-million dollar redevelopment of the former Janie Poe public housing project. The Janie Poe project had…
Multi-Housing Cap Rates Have Increased 150 Basis Points, According to CBRE
By Anuradha Kher, Online EditorBoston– Cap rates increased by approximately 150 basis points, on average, from May 2008 to March 2009, according to the CB Richard Ellis (CBRE) 2009 Multi-Housing Annual Market Report, which surveys 35 U.S. markets. March 2009 results show that higher cap rate increases were reported for Class A assets compared to Class B and Class C, and value-added compared to stabilized deals. Previously, Class B and Class C cap rates moved upward further and sooner than Class A cap rates. In a third of markets cap rates increased by well over 150 basis points since May…
90-Degree Turn: Stimulus Package Redirects Housing Efforts to Affordable rentals
By Eugene Gilligan, Multifamily Editor, Commercial Property NewsThe American Recovery and Reinvestment Act of 2009 is now law and on task to kick-start the moribund U.S. economy, including a re-dedication by the federal government to developing and rehabilitating affordable housing.This sharper focus comes at an opportune time, given investors and developers’ difficulty finding financing in today’s capital-constrained environment. Not to mention state and city budget shortfalls and dropping revenues among some related federal programs.The George W. Bush and, to some degree, Bill Clinton administrations turned their attention to increasing home ownership among poor and middle-class residents more than to developing…
INSIDE THE DEAL: Jones Lang LaSalle Facilitates $19.3M Student Housing Sale for ING Real Estate
By Keat Foong, Executive EditorRichmond, Va.—Here is one way to encourage sales in this market: Find properties with an assumable loan. Jones Lang LaSalle closed the sale of a pair of student housing buildings on the Virginia Commonwealth University (VCU) campus in Richmond, Va., for ING Real Estate. Kanye Anderson Real Estate Partners purchased the two properties, RAMZ Hall, located at 933 West Broad Street, and Capital Garage, located at 1301 West Broad Street, for a combined $19.3 million. “When these assets went out in the market last summer, the debt markets were challenging, to say the least,” said Alex…
TODAY’S DEALS: Grandbridge Closes $3M in First Mortgage Financing for 112-Unit Community
By Anuradha Kher, Online News EditorBirmingham, Ala.–Grandbridge Real Estate Capital LLC recently closed a $3 million first mortgage loan secured by Feemstaer Lake Apartments in Tupelo, Miss. Senior Vice President John Segrest originated the fixed-rate, non-recourse loan. The refinance of the 112-unit apartment complex was funded by Grandbridge and sold to Fannie Mae under the DUS Early Rate Lock (ERL). Fannie Mae’s ERL feature lets borrowers manage interest rate risk by locking the interest rate up to 12 months in advance of funding.The transaction closed with an interest rate in the mid-six percent range and was based on a 10-year…