News
Multifamily Mortgage Delinquencies Increase in Q1 2009
By Anuradha Kher, Online News Editor Washington, D.C.–The weakening economy and continued credit crunch led to increases in commercial/multifamily mortgage delinquencies during the first quarter of 2009, according to the latest Commercial/Multifamily Delinquency Report, released by the Mortgage Bankers Association (MBA). “Multifamily mortgage delinquency rates continued to rise in the first quarter,” says Jamie Woodwell, vice president of commercial real estate research at MBA. “Delinquency rates on multifamily mortgages held by banks and thrifts, by Fannie Mae and in commercial mortgage-backed securities (CMBS) are all now at levels higher than at any time since the 2001 recession. First quarter delinquency rates on…
INSIDE THE DEAL: Alliant Capital Provides Borrower with Cash-Out, Interest-Only Refinance
By Keat Foong, Executive EditorTucson, Ariz.—Unlike construction financing, refinancing is still relatively plentiful for multifamily housing in today’s markets. But only if certain criteria are met. Here is an example of one transaction, completed by Alliant Capital LLC, that works. Alliant Capital supplied $5.5 million for the refinance of Cottonwood Creek, a 102-unit townhouse community in Tucson, Ariz. The 10-year Fannie Mae loan carries a 5.71 percent rate, and a two-year interest-only feature. The original loan on Cottonwood Creek was first taken out about 10 years ago—before many of the high-leverage loans were made in the bull-run of the past…
Minwax Introduces New Low-VOC Formulations
Minwax has expanded its line of low-VOC finishes with new formulations of the company’s polyurethane for floors and spar urethane. Minwax Super Fast-Drying Polyurethane for Floors, with a VOC level of 350, is an easy-to-use option for finishing hardwood floors. It is a clear, oil-based finish that requires no sanding between coats, offering a recoat time of six to eight hours, reportedly faster than any other available 350 VOC polyurethane. It is available in Gloss, Semi-Gloss, and Satin finishes and features an anti-settling formula that provides a smooth, even sheen. The company’s water-based Helmsman Spar Urethane, with a VOC level…
GUEST COLUMN: Do you have to be LEED to be Green?
By Paul Prechter, Carlisle Development Group The green building standard most commonly applied to today’s commercial and residential projects is USGBC’s LEED (Leadership in Energy and Environmental Design) certification, but do you really have to be LEED to be Green? The constraints of the LEED framework have created opportunities for new green building standards to be developed and have influenced LEED’s evolution. Builders and developers are no longer limited to LEED in the design and construction of their green projects.LEED’s constraintsDuring Carlisle Development Group’s design and construction of Tallman Pines, the first LEED Silver-certified affordable housing development in the Southeast…
Construction Conundrum
By Anuradha Kher, Online News EditorSince the credit markets froze last year, the multifamily sector has suffered great pains. While financing for acquisitions and refinancing loans has been far easier in the apartment sector with Fannie Mae and Freddie Mac stepping in, the story of construction financing has mirrored that of the other commercial real estate sectors. New construction has all but halted nationwide, primarily due to lack of credit sources. Also, a drop in demand and the resulting increase in vacancy rates have put an overall dampener on the entire sector.With the fundamentals of the multifamily sector heavily dependent…
Leverage Your Portfolio
places an old model that used manual processing and spreadsheets, which is error-prone, says Tao.Creating a bridge between the various software packages is Multifamily Information and Transaction Standards (MITS). Some of the newest MITS have been especially valuable to apartment companies for their help in linking the companies’ systems to their Internet Listing Services (ILS). “For example, we all use ILS to market and advertise our properties. Every time pricing, availability or even pictures change, we change this data once in the property management system and all of our ILS listings are updated via the MITS feed,” says Reeves. “Really,…
What’s Next
r jobs. They themselves may know people who have lost jobs. So we’re working to keep the morale of our associates up, to help them work smart and hard. We want them to know that if they hit all the items on price, product, promotions and passion, they’re doing the best they can.How is Riverstone coping with an extremely price-sensitive rental market?We know that if there is a $100 difference in rent between a current apartment and another one, a resident will move. So, in addition to giving the best customer service we can, we have to make sure our…
Full Speed Ahead
a key concern for developers interested in TOD. He says it’s easier for a developer to gain public financing to develop a green field, due to the zoning and land use concerns that must be addressed in TODs. “In a lot of cases, TIFs and local improvement districts are necessary to make TODs work,” he says.Such disparate considerations as parking garages, security and ventilation force developers to plan more thoughtfully in TODs than they would elsewhere, Kaiser adds. For instance, parking garages must be designed and situated to allow for the greater degree of shared parking TODs require. Due to…
Money Matters
By Christopher Hosford, Contributing EditorEffective resident payment technologies do more than just get money in the door. Providing residents with efficient, flexible ways to pay their rent can be an excellent customer-service, as well as a resident-retention and new-customer acquisition, tool.Today, there are some intriguing new innovations in rent-payment technology that can make the process even more useful to both communities and their residents.”Having a multimedia approach to payment is critical to the success of rent-payment programs,” says Mike Radice, president and CEO of NWP Services, a leader in utility cost recovery and a player in the rent-billing arena. “It…
Turning Over Units
By Erika Schnitzer, Associate EditorWith summer about to officially begin, the peak season for apartment turnover is here. With rising vacancies, it is tempting to turn over apartments as fast and inexpensively as possible, but it is equally as important not to sacrifice quality in this market. First, walk through the apartment with the present resident before he moves out, notes Lisa Trosien, multifamily speaker, trainer and consultant. It will not only “alert you to any significant repairs that need to be made,” but will also “prep that outgoing resident for any charges they may incur,” which is critical to…