News
Renter Affordability Likely to Remain Issue
By Keat Foong, Executive Editor Austin, Texas–Rental affordability is likely to continue to be an issue despite the recession, suggests a research report from Mission Residential LLC, an apartment development and investment company. Analyzing data from the American Housing Survey, Richard Moody, chief economist and director of research at Mission Residential wrote that “renter households continue to face imposing housing cost burdens, an issue that will only be compounded by what looks to be a deep and prolonged recession in the U.S. economy.” Mission Residential’s December 2008 research report entitled “Affordability Remains an Issue in Rental Housing Market” said that…
TODAY’S DEALS: KeyBank Real Estate Capital Closes $51.8M in Loans for Four Multifamily Properties, and Other Transactions
By Erika Schnitzer, Associate Editor Cambridge, Mass.—KeyBank Real Estate Capital has closed $51.8 million in Fannie Mae and Freddie Mac loans for four multifamily properties in Mass. and N.Y.Two of the four borrowers used Fannie Mae funding for properties in Mass. Forest City 91 Sidney Street LLC borrowed $25 million in Fannie Mae DMBS funding to refinance its 135-unit, 10-story mid-rise property in Cambridge, which is part of the 27-acre master-planned development at University Park at MIT. Spring Meadows Associates LLC borrowed $2.9 million in Fannie Mae acquisition funding for a 22-unit building in Danvers, Mass.In N.Y., KeyBank Real Estate…
Multi-Housing Executives Update: Douglas Woodward Joins Enterprise Land Fund as Managing Director, and Other Moves
By Erika Schnitzer, Associate EditorIrvine, Calif.—Douglas Woodward has been named managing director of Enterprise Land Fund LLC, a partnership of IHP Capital Partners and LARO Properties LP. In this role, Woodward will initially be focusing on the purchase, entitlement and development of land in the cities of Ventura, Los Angeles, Orange and San Diego, including infill properties.“We believe in working with property owners to create value with well-designed residential projects that will be highly desired by homebuilders as we move into a positive market environment,” Woodward says.Prior to joining Enterprise Land Fund, Woodward served as president and founder of TDAC…
Fannie and Freddie Will Probably be Backed by Government as Long as is Necessary, Says Analyst
By Keat Foong, Executive EditorWashington, D.C.—The government will likely continue to support Fannie Mae and Freddie Mac as long as is necessary, suggested a senior fellow at the conservative think-tank American Enterprise Institute. “Fannie Mae and Freddie Mac will continue in business into the future under the government’s control,” Peter Wallison tells MHN. Wallison said the $200 billion the Treasury has so far committed to backstop Fannie Mae and Freddie Mac to keep them solvent will not be nearly enough. There are huge amounts of supprime and other debt that the companies contracted between 2005 and 2007, he said. These…
$150M Transit-Oriented Adaptive Reuse Project Opens in California
By Erika Schnitzer, Associate Editor Los Angeles—Milbank Real Estate, a Los Angeles-based developer and real estate investment firm, recently opened its newest condominium, The Roosevelt, a 222-unit adaptive reuse project. The transit-oriented development is situated directly above the Seventh Street Metro station.Bank of America provided the construction loan for the $150 million project, which will also be receiving a tax credit from the Los Angeles Conservancy.“Over the last few years, there has been a trend of either converting some of the older office buildings into residential or building brand-new units into downtown L.A. to create a residential neighborhood in downtown,”…
How to Prep for the Digital TV Transition
By Teresa O’Dea Hein, Managing EditorWashington, D.C.–While many people may be counting down the shopping days to Christmas, there are only 74 days left, as of December 5, until the end of analog television broadcasts. Are you, and your communities, prepared for Feb. 17, 2009 transition to digital TV?To highlight this issue, the National Multi Housing Council (NMHC) recently held a Webinar to point out what property owners and managers need to consider to prepare for the elimination of analog TV broadcasting. Interestingly, said Steven Hill, vice president of training and technology for the Satellite Broadcasting and Communications Association, February…
Limited Range
Commentary and Data Supplied by Dean Crist, Senior Economist, National Association of Home Builders (NAHB)Interest Rates: The prime rate has at an 18-monthly low — and it looks as if the mortgage rate is responding by dropping slightly as well. That should help move some bargain-hunters move off the dime and shrink the housing inventory. But the LIBOR jumped almost a full point — which will squeeze holders of adjustable-rate mortgages pegged to that index, as they reset. That may push foreclosures up, expanding the shadow market of empty housing being rented at fire sale rates. Building Materials: The price…
The ‘Echo’ Boom Gets Louder
particularly jittery. A storm that delays move-in can put a tremendous financial burden on the property.Also, should the student market atrophy, developers will find it impossible to attract traditional apartment renters because their housing designs are so unique. Most owners won’t even consider an exit strategy, because there isn’t one.Design distinctionsThanks to students’ dependence on cell phones, off-campus housing communities rarely need hard-wired phones. However, on-line classroom connectivity via the university’s intranet system is often a requirement. A resort-size pool and deck area, large spa and 24-hour fitness facility also boost rentals.”What’s in and what’s out?” asks Humphreys, rhetorically. “Green…
Best Multifamily Bets for 2009
overall revenues essentially flat.MinneapolisCurrent Performance: Occupancy of 95.2%, Annual Rent Growth of 3.9%Minneapolis ends 2008 with occupancy in good shape and rent growth registering at a healthy pace. Ongoing construction is minimal, with permits for only 1,800 units issued during the past year. To remain among the nation’s top tier performers during 2009, then, the metro just has to avoid meaningful job loss, and economic forecasters are anticipating only minor backtracking in the employment tally.PittsburghCurrent Performance: Occupancy of 97.5%, Annual Rent Growth of 3.6%Pittsburgh has quietly become one of the healthiest apartment markets across the country over the past couple…
TODAY’S DEALS: Freddie Mac, HFF Provide $38.7M in Financing for 612 Units, and Other Transactions
By Erika Schnitzer, Associate Editor Lincoln, Neb.—Freddie Mac recently purchased a $38.7 million mortgage from Holliday Fenoglio Fowler (HFF) to provide financing for The Links at Lincoln, a 51-building, 612-unit apartment community in Lincoln, Neb.The 10-year fixed-rate mortgage transaction utilized Freddie Mac Capital Markets Execution SM Pilot. The borrower was Fayetteville, Ark.-based Lindsey Management Company.The Links at Lincoln, which was constructed in 2007, features a clubhouse, pool, fitness center and business center.The Arker Companies Closes $24.4 Financing for 83-Unit Mixed-Use CommunityNew York—The Arker Companies has closed the financing of $24.4 million for Hewitt House Apartments, an 83-unit, 75,300-sq.-ft development that…