News

Bozzuto Development Co. recently promoted Toby Bozzuto (pictured) to president. Previously, he served as executive vice president.   Bozzuto joined the company in 2001 and in 2007 was named a partner of The Bozzuto Group of companies. He was previously a financial analyst with J.P. Morgan Chase’s Real Estate Debt Group, and was also with Columbia National Real Estate Finance. He talks to MHN Online News Editor Anuradha Kher about taking on this new role, his plans for the company and why he thinks the down time in the economy can strengthen the company.MHN: Did you replace Thomas Baum, the previous…

By Erika Schnitzer, Associate EditorBronx, NY—The Women’s Housing and Economic Development Corporation (WHEDCo), a Bronx-based non-profit organization that builds affordable homes, hosted an open house event yesterday to celebrate the completion of its $39 million, 128-unit Intervale Green, the largest affordable Energy Star-certified high-rise building in the nation. With the project complete, residents will begin moving in within the next two weeks.“Trying to pull together the best in aesthetics and energy efficiency and affordability is really a challenge, but we want to show that it can be done—and it can be done even on the worst of sites,” Nancy Biberman,…

By Keat Foong, Executive EditorI remember the recession of the late-1980s-early-90s. Wave upon wave of news kept coming in 1989-‘90 of layoffs at corporations. I thought at the time, “They are laying off so many people that there will be no one left to buy the goods they produce.” Sure enough, by the early 1990s, the situation was pretty bad.   But one bright spot at the time was the Low Income Housing Tax Credit (LIHTC) program, which played a large part in driving this magazine’s recovery. The reason? Although the market-rate apartment industry at the time was not doing so…

By Erika Schnitzer, Associate EditorWashington, D.C.–The U.S. Department of Housing and Urban Development (HUD) has awarded $650 million in grants for the development of affordable housing, as well as rental assistance and aid for supportive services. The funding will provide non-profit developers interest-free capital advances for these initiatives. The Section 202 Capital Advance program received $525.9 million to fund the construction, acquisition, and rehabilitation of multifamily developments for very low-income seniors. In addition, the program subsidizes the rents of seniors so they only contribute 30 percent of their incomes toward rent.The Section 811 Capital Advance program received $124.5 million to…

By Anuradha Kher, Online News EditorColorado Springs, Colo. and Woodbridge, Va.–Love Funding recently closed two refinance loans totaling $9,176,000 for two multifamily projects located in Colorado and Virginia. The national mortgage-banking firm was able to secure Federal Housing Administration (FHA) financing for both communities. The first loan, totaling $3,974,700, was closed for the 171-unit Arbor Pointe Apartments located in Colorado Springs, Colo. Funded through the FHA 223(f) loan program, terms of the deal include a 6.4 percent fixed interest rate and a 35-year amortization. Love Funding was also able to secure $5,201,300 in financing through the FHA 223(a)(7) loan program…

By Anuradha Kher, Online News EditorWellington, Fla.–The Bainbridge Cos. has launched Bainbridge Distressed Property Services LLC, a new group that will offer a range of services to owners and lenders of 100- to 400-unit properties facing foreclosure or financial hardships. The firm is seeking multifamily, mixed-use and commercial acquisitions as well as management assignments along the East Coast and Mid-Atlantic region.“There is significant capital available for opportunistic acquisitions but there is a lack of understanding of the complexities associated with them,” Rick Giles, managing director of acquisitions for The Bainbridge Cos., tells MHN. “It’s about more than minimizing losses; it’s…

By Anuradha Kher, Online News EditorWashington, D.C.–NeighborWorks America is forecasting the total investment in its portfolio of owned and managed multifamily affordable rental housing to grow by more than $50 million, or just over eight percent of the investment made in the year ended Sept. 30 2008. Last year, NeighborWorks organizations invested in excess of $644 million in multifamily properties. The expected growth in 2009 will translate into approximately 5,000 additional units of affordable and what it said is increasingly environmentally sustainable housing.“We believe rental housing needs to be strengthened and needs to take a more prominent role in the…

By Anuradha Kher, Online News EditorWaterloo, CANADA–RenewABILITY Energy Inc., Reid’s Heritage Homes and Union Gas have completed the installation of 250 Power-Pipe DWHR Systems at the University of Waterloo, Columbia Lake Village North Community (CLV), Ontario. Now completed, the Power-Pipe DWHR Systems is expected to reduce water heating in unit showers by 20 percent to 30 percent.“This is a simple, affordable and scalable turnkey heat recovery technology that dramatically reduces water heating costs,” says Ron Salisbury, manager- Home Performance at Reid’s Heritage Homes.“Reid’s Heritage Homes which partners with the University of Waterloo in maintaining the University residences has been installing…

By Keat Foong, Executive EditorOcean Springs, Miss.–In the current environment, brand-new institutional quality apartments in healthy markets are still readily financed, and this transaction provides an example. Capmark Finance Inc. originated $3.9 million in fixed-rate financing through its Freddie Mac program for the borrower’s purchase of the newly-constructed Dominion Apartments from the original developer. “This was an excellent brand new property that had just completed leasing,” said Chad Hagwood, senior vice president of Capmark’s Birmingham, Ala. office. Hagwood, who originated the loan, characterized the market as “very good,” and he said the borrower and management companies were both “excellent” and…

By Anuradha Kher, Online News EditorNew York–HFF (Holliday Fenoglio Fowler L.P.) recently arranged a $94 million refinancing for Riverbank West (pictured), a 44-story luxury project in Manhattan.A local New York bank provided the four-year, fixed-rate loan with a five-year extension option.Riverbank West is located at 560 West 43rd St. between 10th and 11th Avenues in the Midtown West neighborhood of Manhattan. The 97 percent leased property has 418 units, 25,738-sq.-ft of retail space and an 84-space underground parking garage. Community amenities include a 24-hour doorman and concierge, business center, laundry facilities and a valet dry cleaning service. Deutsche Bank Berkshire…