News
INSIDE THE DEAL: How a Loan is Done in the Nation’s Worst Economy
By Keat Foong, Executive EditorAnn Arbor, Mich.—Given its location in Michigan—the state with the troubled automobile industry and the highest unemployment rate in the country—how did a 44-unit property here obtain financing recently? The answer is that Ann Arbor is one of the “pockets of stability” in the state, according to Aaron Klein, president of the Ann Arbor-based Commercial Mortgage Capital Inc. (CMC). “Getting deals done in Michigan is very, very difficult,” says Klein. “However, Ann Arbor remains one of the few markets perceived by institutional lenders as being viable.” The community is in fact a “very good property,” says…
Company Plans to Acquire Distressed Condo Properties, Move them Into Rental Market
By Anuradha Kher, Online News EditorIrvine, Calif.–Sycamore Urban Properties, a firm that specializes in acquiring and stabilizing new and converted condominium properties that have fallen into distress since the housing bubble burst, recently made its first acquisition. The company acquired a 41-unit, newly constructed townhome development in Rancho Cucamonga, Calif. Sycamore Urban purchased the note for the Rancho Cucamonga asset in September 2008 and successfully navigated through the bankruptcy process, taking title to the property via foreclosure in early March.“There are very few sources of debt that are attractive right now, except for the agencies,” Sycamore Urban President Mitchell Bradford…
TODAY’S DEALS: Love Funding Closes Three Loans of Over $9M, and Other Transactions
By Anuradha Kher, Online News EditorEden, N.Y., Holland, Mich.–Love Funding recently closed three loans, totaling $9,526,300, for two assisted-living facilities and one multifamily housing complex located in three different states. Midwest Regional Director Bruce Gerhart secured $8,825,100 in financing for two assisted living facilities in New York and Michigan. He closed a $4.9 million refinance loan for the Eden Heights of Eden (pictured), which is located in Eden, N.Y. and features 74 units and 120 beds. Terms of the loan, which was financed through HUD’s 232/223(f) loan program, include a 6.05 percent interest rate and a 33-year amortization. Gerhart also…
Mouser’s Custom Cabinetry’s New Door Styles
Mouser Custom Cabinetry has recently introduced the Estate Moulding option (pictured left) and the Open and Closed Louvre doors (pictured right). The Estate Moulding Option expands on the current selection of door styles by incorporating decorative moulding into the door design. The applied moulding addresses a growing trend for decorative and wide rail doors. The new Estate Moulding Option is available on the Cambridge, Fairmont, Kensington, Milan, Monterey, Sonoma, Stratford, Tahoe and Winchester door styles in Maple, Cherry, and select Alder wood species.The vented Open Louvre doors permit the passage of air, making them ideal for applications where ventilation is…
Fannie Mae Invested Over $35B in MF Financing in ’08, Red Mortgage Capital Was Top Lender
By Anuradha Kher, Online News EditorWashington, D.C.–Fannie Mae invested a total of $35.5 billion in multifamily housing in 2008. Red Mortgage Capital, Citibank and Sovereign Bank, FSB produced the greatest volumes in flow (all loans including Delegated Underwriting and Servicing), seasoned pools and structured transactions, contributing over $9 billion dollars collectively. Fannie Mae also announced the top originators of its DUS multifamily debt financing product, which is the company’s primary multifamily lending platform for the past 20 years. Fannie Mae DUS lenders were responsible for over 90 percent of the Fannie Mae multifamily debt business in 2008.“Fannie Mae and its…
Wireless Internet as Retention, Advertising Tool
By Anuradha Kher, Online News EditorAuburn, Ala.–Aerowire is a technology company that provides wireless Internet connections to multifamily projects as well as municipalities and offices. The company, which was founded by President Butch Brock three years ago, claims to provide a faster alternative to other high-speed Internet access options by installing a small 12-in. x 4-in. antenna on the roof of a building. Any building’s existing wiring (or laptops with wireless internet cards) can be used to deliver connections to the Internet.“Student housing properties are our primary customers,” Bill Lavers, vice president of development at Aerowire, tells MHN. “We have…
Mexico’s 561-Acre Coastal Resort Community to Feature Over 6,000 Condo Units
By Anuradha Kher, Online News EditorRiviera Maya, MEXICO–Grupo Grand Coral, owned by Spanish financial houses including Bancaja and Banco de Valencia, has unveiled plans for Grand Coral Riviera Maya, a 6,900-unit resort condominium community located on 561 acres in the coastal town, Playa del Carmen. In addition to the condo project, the $2.5 billion investment will feature hotels, resorts, an 18-hole Nick Price golf course and entertainment and retail/restaurant outposts.Construction phases are estimated to take place over the next 10 years and $700 million has been invested to date. Mareazul (pictured), a 300-unit luxury beachfront condominium community, is currently under…
Report from The Middle East
By Bob Koch, Fugleberg Koch ArchitectsThe world economy is challenged by a global crisis that has starved the industry of credit and liquidity. But, not all liquidity is frozen or lost to declining market values. In parts of the Middle East, where Islam and its financial laws are observed, cash is king. In Saudi Arabia, it is estimated that over $600 billion is stashed away waiting for the signs of promise to again invite investment there and abroad.While parts of the Middle East like Dubai witnessed rapid growth fueled in part by real estate speculation, other parts such as the Kingdom…
Mansion on Peachtree Receives GreenGuard Building Construction Certification
By Erika Schnitzer, Associate EditorAtlanta—The Mansion on Peachtree Hotel and Residences, a 42-story condo/hotel tower, has received GreenGuard Building Construction Certification, the first multifamily project in the state to achieve this award. The Certification is based on the requirements of the pending ANSI (American National Standards Institute) standard for newly constructed buildings to prevent mold and moisture.“It’s a voluntary program—a commitment made by the general contractor and owner to focus on quality and construction,” Taylor Gonsoulin, PE, CIAQP, LEED AP, general manager of Air Quality Sciences, a national building consulting organization and the third-party consultant for The Mansion on Peachtree,…
TODAY’S DEALS: HFF Secures $22.1M Refinancing with Freddie Mac for 236-Unit Rental Community, and Other Transactions
By Anuradha Kher, Online News EditorRancho Cucamonga, Calif.–HFF (Holliday Fenoglio Fowler L.P.) recently secured a $22.1 million refinancing with Freddie Mac for Fairway Palms Apartments (pictured), a 236-unit multifamily community in Rancho Cucamonga, Calif.Working on behalf of institutional investors advised by J. P. Morgan Asset Management – Global Real Assets, HFF senior managing director Whit Wilcox placed the seven-year, adjustable-rate loan with the Federal Home Loan Mortgage Corp. (Freddie Mac). Loan proceeds are paying off a maturing loan that the borrower had with a portfolio lender. HFF has closed more than $100 million in financing through Freddie Mac in 2009.Fairway…