News
EDITOR’S NOTE: The Point of the Housing Act
By Keat Foong Executive Editor The big news in recent weeks is the passage of the Housing and Economic Recovery Act of 2008, described to be the most significant housing legislation in a generation. The government effort to calm the financial markets with regards to Fannie Mae and Freddie Mac is surely a welcomed development for the multifamily industry, which is relying now more than ever on these two agencies to supply it with debt capital. The last thing we want is for this twin engine of multifamily financing to vanish into thin air, or for bond investors to lose…
Meeks + Partners Designs Resort Condominium off Coast of Southern Texas
By Erika Schnitzer, Associate EditorMustang Island, Texas–Meeks + Partners, based in Houston, has designed a flagship development for San Antonio-based Koontz McCombs LLC. The Palmilla at Port Aransas, a 94-unit luxury condominium, is expected to break ground in the spring of 2009.“Bart Koontz (president and CEO of Koontz McCombs) had a vision to build a resort development unlike anything that had been built in Port Aransas,” says Thomas Wells, vice president of multifamily development at Koontz McCombs LLC. Many developments in this location tend to be single-family homes, beach homes and hotels, he adds.Located off the south coast of Texas…
Today’s Deals: Meridian Capital Group Arranges $6.205M in Financing for Three Multifamily Projects, and Other Transactions
By Anuradha Kher, Online News EditorChicago–Meridian Capital Group recently arranged $3,280,000 in financing for a multifamily building located at 1441 W. Howard St. in Chicago as well as $2,925,000 for two multifamily buildings located at 6810 N. Lakewood Ave. and 3915 N. Fremont Ave.The 62-unit property on W. Howard street is one block from Lake Michigan in the East Rogers Park neighborhood.The two buildings at 6810 N. Lakewood Ave. and 3915 N. Fremont Ave. consist of a total of 51 apartments.Raintree Villas Rental Community Sells for $2.2MTempe, Ariz.–Sperry Van Ness has completed the sale of Raintree Villas (pictured), a 24-unit…
Multi-Housing Executives on the Move
By Anuradha Kher, Online News EditorEd Hurley Hired as COO of Avanath CapitalIrvine, Calif.–Avanath Capital Partners has hired Ed Hurley (pictured right) as the company’s chief operating officer.“We share a common business philosophy and vision for the company,” says Daryl Carter, CEO of Avanath Capital Partners. “His tenacity and extensive industry knowledge and experience in the multifamily market will be a key component to the continued growth and success of Avanath Capital Partners.”As COO, Hurley will oversee the day-to-day operations of the firm, including asset management, finance and accounting, risk management, information technology and corporate administration. “Joining Avanath Capital Partners…
Apartment Sales Volume, Availability of Equity, Debt Capital All Decline
By Anuradha Kher, Online News EditorWashington, D.C.–Despite a sluggish economy resulting in a small decline in market tightness, overall apartment demand is holding up fairly well, according to the National Multi Housing Council’s (NMHC) latest quarterly survey. Sales volume is down and both equity and debt capital are less available, the study finds.The Market Tightness Index, which measures changes in occupancy rates and/or rents, decreased from 44 last quarter to 40 this quarter. For all four of the survey indices, a reading above 50 indicates that, on balance, conditions are improving; a reading below 50 indicates that conditions are worsening;…
Investcorp’s New $1B Credit Investment Vehicle Begins Deploying Capital
By Anuradha Kher, Online News EditorNew York–Investcorp’s U.S.-based real estate group recently launched a $1 billion vehicle funded with capital raised from Investcorp and its clients as well as a sovereign wealth investor in the Persian Gulf.“We will be acquiring performing loans across all property types and multifamily properties will be a significant component,” Peter Petron, principal of Investcorp, tells MHN. “This is actually a very good time for us to launch this fund because there is a lack of liquidity in the system and as a well capitalized company, we see a good opportunity.”Petron adds that the fund will…
Today’s Deals: Luxury High-Rise in New Jersey Sells for $23.55M, and Other Transactions
By Anuradha Kher, Online News EditorHackensack, N.J.–Gebroe-Hammer Associates recently arranged the sale of The Carlyle (pictured), a luxury hi-rise apartment building in the heart of Hackensack, N.J., for $23.55 million.Hekemian & Co sold the property to a private New Jersey-based investment group.“The Carlyle is at the center of Hackensack’s finest residential neighborhood and has earned a reputation for providing superior apartment-style living in close proximity to New York City,” says Ken Uranowitz, managing director at Gebroe-Hammer Associates. “It is rare that a property of this caliber comes to market in Bergen County, where multifamily housing product is being acquired at…
Del-Sano Contracting Breaks Ground on Two Phases of N.J. Continuing Care Community
By Erika Schnitzer, Associate EditorWest Caldwell, N.J.–Del-Sano Contracting Corp., a Union, N.J.-based construction management firm, has been selected to serve as the general contractor of Phases two and three for a continuing care retirement community in West Caldwell, N.J. The development, Crane’s Mill, will be the second project that Del-Sano has built for the owner, Lutheran Social Ministries of New Jersey (LSM/NJ), a faith-based, non-profit ministry that provides social services and affordable housing to seniors and families.The first phase of the project was completed in 1998. “The building has been fully occupied for two to three years, and we’ve had…
HUD Provides $600M to Modernize, Construct 4,100 Public Housing Units in Puerto Rico
By Anuradha Kher, Online News EditorNew York–The U.S. Department of Housing and Urban Development is expected today to sign a Puerto Rico bond refinancing and tax-credit approval, a financial agreement worth more than $600 million, including more than $200 million in tax-credit equity that will accelerate the modernization and construction of more than 4,100 public housing units in Puerto Rico.Deputy Secretary Roy Bernardi will join Puerto Rico Governor Anibal Acevedo Vila in signing the agreement at the JP Morgan office in Midtown Manhattan. This is the largest tax-credit equity investment in the history of the 22-year-old Low Income Housing Tax…
Q&A with Michael Cannon: I Don’t Think the Condo Market Has Gone Bust
Michael Cannon, managing director for Integra Realty Resources’ Miami office and 30-year commercial real estate veteran, says mixed-use projects can work if they are built for the right reasons but cautions that these types of projects potentially carry much more risk.He talks to MHN Online News Editor Anuradha Kher about what condo developers are doing in markets with no demand for condos, risks in condo conversion and the hot condo markets in the world.MHN: What are condo developers doing in markets where there is no demand for condos? Cannon: Worried condo developers with projects in the pipeline are getting creative…