News
MARKET SNAPSHOT: With its Softening Fundamentals, Tampa is Not Forecast to Bounce Back Until 2011
By Erika Schnitzer, Associate Editor Tampa, Fla.—Tampa’s apartment fundamentals have softened considerably, according to Marcus & Millichap’s 2009 National Apartment Report.Asking rents are forecast to fall 0.8 percent, to $834 per month, while effective rents will decline 1.5 percent, to $779 per month. “Before the credit crunch hit and before the employment numbers started to soften, it was a 2 to 3 percent annual rent increase market, but I don’t think anyone realistically thinks we’ll return to that until 2011,” Jeffrey Meyer, senior investment associate and director of Marcus & Millichap’s National Multi Housing Group in Tampa, Fla., tells MHN.Vacancy…
Blackstar Urban Fund II Completes $3.8M Restoration on Historic Memphis Building
By Anuradha Kher, Online News EditorMemphis, Tenn.–Blackstar Urban Fund II, owned by Blackstar Capital Partners, a real estate private equity fund, recently completed restoration of The Greenstone, the first and only multifamily building to be listed on the National Register of Historic Places in Memphis. The Blackstar Urban Fund II is an internally capitalized fund, which has no set amount of equity, and an agenda to invest in distressed properties. The Greenstone is one such property. The building itself, which was built in 1927 and operated as a multifamily rental community for 82 years, hadn’t been given the appropriate attention….
Collegiate Management Launches Property Recovery Division as Student Housing Sector Faces Increasing Woes Due to Downturn
By Anuradha Kher, Online News EditorIrving, Texas–To tackle bankruptcy, foreclosures and other issues the student housing sector is facing as a fallout of the recession, Collegiate Management Group LLC has formed Collegiate Management Group Property Recovery Division, designed to provide owners of struggling student housing properties with turnaround management services. The division will provide operational and market consulting, property management, repositioning and re-branding, and due diligence.“We will continue to see troubled student housing assets in the future,” Christina Aclin director of business development at Collegiate Management Group, tells MHN. “Student housing has been in its own bubble for a while…
yoo Launches Rental Program for Vacation Home Development Near London
By Anuradha Kher, Online News EditorCotswolds, U.K.–The Lakes by yoo, a second home development in the Cotswolds region of U.K., is now offering owners the opportunity to rent their properties to vacationers through a fully managed rental program. Owners at The Lakes can participate in the free rental initiative, which will allow them to offer their vacation homes up for lease when not in use, potentially offsetting the costs of ownership and maximizing their investment.“This new rental program offers a way for buyers to effortlessly capitalize on their investment at The Lakes,” says John Hitchcox, chairman of yoo. “Participating in…
Improve Accountability, Improve Results
By Dave Clements, president and CEO of Lasso When it comes to sales organizations, “accountability” can be one of those words that get plenty of lip service, but very little execution. Sales people like to avoid it because it means that their process will be placed under close analysis by their superiors, while most managers tend to dodge it because it suddenly makes them a potential “villain,” following the team’s every move and disrupting the normal flow of the sales process.That’s all well and good… except in tough economic times, when the process needs to work better than it ever…
TODAY’S DEALS: NorthMarq Arranges Permanent Loan of $19.5M for 336-Unit Community, and Other Transactions
By Anuradha Kher, Online News EditorDenver–NorthMarq has arranged a permanent loan of $19.5 million for South Fork Apartments. The newly constructed, garden-style apartment community features 336 units in 15 three-story buildings. Amenities include an outdoor swimming pool, heated spa, detached garages available for additional monthly cost, along with a clubhouse, business and fitness centers. Unit amenities consist of patio or balcony, gas fireplaces, vaulted ceilings, high-speed data wiring, walk-in closets and washer/dryer connections. HFF Arranges $9M Refinancing for 256-Unit Rental CommunityFlorham Park, N.J.–HFF (Holliday Fenoglio Fowler L.P.) has secured refinancing totaling $9 million for Plaza I and Plaza II Apartments,…
David Stevens is New Assistant Secy. for FHA Commissioner
By Anuradha Kher, Online News EditorWashington, D.C.–President Barack Obama has nominated David Stevens as assistant secretary for Housing and Federal Housing Administration (FHA) Commissioner. Stevens currently serves as the president and chief operating officer of the Long & Foster Cos., which includes Long & Foster Real Estate and its affiliated businesses, including mortgage, title, and insurance and home service connections. “The President’s nomination of David Stevens, an innovator and single-family housing industry leader, shows this administration’s commitment to moving [the] country out of the current housing crisis,” says Donovan. “Stevens’ depth of knowledge in real estate, housing and the…
NAHB Recognizes Industry Achievement at 2009 Pillars of the Industry Awards
By Erika Schnitzer, Associate EditorSan Diego—The National Association of Home Builders (NAHB) has announced the winners of the 2009 Multifamily Pillars of the Industry Awards in 28 categories. The winners represent the best in multifamily development, design and execution, marketing and individual achievement.Bozzuto Management Company was named Property Management Company of the year for the second time—the first was in 2000. The Greenbelt, Md.-based company manages 27,500 units in 97 properties throughout the East Coast.Julie Smith, president, Bozzuto Management Company, says, “I credit the team we have built at Bozzuto to receiving this award, because everything we have done is…
Administration’s Plans for Buying Troubled Loans: What Does it Mean for Multifamily?
By Anuradha Kher, Online News EditorNew York–The Obama administration has big plans to fix the credit market. The Federal Reserve announced recently that it would pump an extra $1 trillion into the financial system by purchasing Treasury bonds and mortgage securities. In addition, the Treasury Department, along with the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) has this week made public the details of its new Public-Private Investment Program (PPIP).The idea is to increase activity in the credit market by lowering interest rates, including those on home loans, and to help the financial system as it struggles due…
INSIDE THE DEAL: Winner of Bidding War Goes To… Affordable Developer in $7.3M Deal Brokered by Hendricks and Partners
By Keat Foong, Executive EditorBurbank, Calif.—Sometimes, a seller is fortunate to find an affordable housing developer. That was the case in the sale of Verdugo Gardens, brokered by Hendricks and Partners. The 34-unit apartment community was sold for $7,262,500, at a 4.65 percent cap rate (with in place rents), or $246.56 per square foot. All in all, a relatively high price even in the second half of last year. The seller was Jamco Holdings Corp. of Los Angeles, which was seeking to execute a 1031 exchange, by selling this property and buying another. The buyer was Burbank Housing Corp. of…