News

By Anuradha Kher, Online News EditorWashington, D.C.–According to the U.S. Census Bureau and the Department of Housing and Urban Development, new-home construction starts for multifamily (five units or more) fell 17.1 percent to 145,000 from November to December 2008. Meanwhile, the overall starts fell 15.5 percent for the same time period, to an annual pace of 550,000, the slowest on record.   Homebuilders have all but shut down projects as home values plunge and potential buyers stay on the sidelines. “It’s going to be very difficult in 2009 for developers to get financing for any kind of project,” Toby Bozzuto,…

By Anuradha Kher, Online News EditorWest Lafayette, Ind.–Gross & Cohen Purdue LLC has completed the acquisition of The Fairway student housing apartments (pictured) for $14.2 million.The Fairway represents Gross & Cohen’s entry into one of the strongest student housing markets in the Midwest. The 167-unit/298-bed complex is located one mile from the Purdue University campus adjacent to the university’s golf course.Originally built in three phases in the 1970s, The Fairway has had three new buildings added in the past two years. The older units have been completely rehabbed and the community is 100 percent occupied.“The Purdue market is very strong,…

By Anuradha Kher, Online News EditorTampa, Fla.–While several real estate companies have downsized in recent months, even eliminating executive positions, Marcus & Millichap Real Estate Investment Services continues to hire when the need arises. Recently, the company hired Jamie B. May as a senior director of the National Multi Housing Group (NMHG). He will be based in Tampa, Fla.“The company has not undertaken any cost-cutting measures that would impact our agent and/or client services,” Linwood Thompson, senior vice president and managing director of the NMHG, tells MHN. “We are focused on the long-term needs of our agents and clients and…

By Erika Schnitzer, Associate EditorPalm Springs, Calif.–RentBureau, a credit bureau for the multifamily industry, launched RentConfirm.com, a Web site providing immediate verification of rental history, at the National Multi Housing Council (NMHC) Annual Meeting today.“What is unique is that it is automated,” says Eric Hartz, president and CEO of RentBureau, pointing to the apartment industry’s history of operating manually. “We get the data pushed to us from all software packages.”RentConfirm.com utilizes RentBureau’s database, which collects rental payment histories daily from its national network of property owners and managers, who provide their rental data directly to RentBureau. In exchange, members can…

By Anuradha Kher, Online News EditorFort Myers, Fla.–Management Group 1, a seven-person company based in Fort Myers, Fla., says it grew 25 percent in the fourth quarter of 2008 and plans to add an additional 25 percent to its workforce in the coming months. “We entered the market a-year-and-a-half back as a property management company, but now we provide loss mitigation services, help in case of foreclosures, help with finding buyers and negotiations with banks,” Michael Aranda, president of Management Group 1, tells MHN. Unlike a number of companies cutting down staff or re-organizing at a time of economic difficulty (click…

By Anuradha Kher, Online News EditorCincinnati–London Computer Systems Inc. (LCS), developer of Rent Manager property management software, is partnering with CBCAmRent, a resident screening company that allows rental applications to be processed by checking criminal, eviction and credit reports.“The demand has doubled every month since incorporating it into Rent Manager,” says Dave Hegemann, president and founder of LCS. “In today’s world, it’s more important than ever to know who you’re renting to, and our customers have been very pleased with this product.”LCS’s partner, CBAmRent is an affiliate of CBCInnovis, a consumer reporting company for real estate support businesses in the…

By Keat Foong, Executive Editor Los Angeles— CB Richard Ellis Capital Markets provided a $78.3 million loan for a trophy high-rise asset, in what the company says is one of the largest multi-family transactions of the year in Southern California.    The sponsor, The Kor Group, wanted to recapitalize its equity on the property. And it also wanted to initiate renovations to bring up the building rents substantially. The challenge was that the borrower was seeking a high-leverage loan, according to Brian Eisendrath, senior vice president, Debt and Equity, at CBRE Capital Markets. The Kor Group also wanted a fixed-rate loan…

By Anuradha Kher, Online News EditorLexington, Ky.–Grandbridge Real Estate Capital LLC has closed a $17,662,000 refinance loan for the Summit (pictured), a 240-unit, class A garden-style apartment community in Lexington, Ky. Funded by Grandbridge, the loan was sold to Freddie Mac under its Early Rate Lock loan program. Constructed in 2007, the property is located on approximately 15 acres near the prestigious Brighton Place Shoppes, and is considered one of Lexington’s premier apartment communities. The development is comprised of one-, two- and three-bedroom units, each of which features nine-ft. ceilings, fireplaces, deep Roman tubs, gourmet kitchens, private balconies and patios…