News
Condo, Co-op Market Shows Some Signs of Improvement, Not Enough to Call It Trend
By Anuradha Kher, Online News EditorWashington, D.C.–Overall existing-home sales rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units in September, from a level of 4.91 million in August, and are 1.4 percent higher than the 5.11 million-unit pace in September 2007, according to the National Association of Realtors (NAR).However, while the existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 560,000 units in September, they are 15.7 percent below the 664,000-unit pace in September 2007. The median existing condo price was $199,400 in September, down 10.2 percent from a year ago….
Multifamily Housing Starts Predicted to Fall 6% in Dollar Volume in 2009
By Anuradha Kher, Online News EditorWashington, D.C.–Multifamily housing will retreat six percent in dollars and eight percent in units, after the sharp plunge witnessed during 2008, according to McGraw-Hill Construction’s 2009 Construction Outlook.“The condo boom has dried up and financing is difficult to get, especially with the CMBS having disappeared,” Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction, tells MHN. “Demand for multifamily has been negatively impacted due to the weakening job market. While down significantly, the multifamily housing starts haven’t been as severely impacted as single-family.”This is in line with the Commerce Department’s latest report showing…
TODAY’S DEALS: Alliant Capital Closes First Ever Refi-Plus Apartment Loan, and Other Transactions
By Anuradha KHer, Online News EditorTucson, Ariz.–Alliant Capital recently closed $28,438,400 for the refinance of the Summerlin Villas Apartments located in Tucson, Ariz. under its Refi-Plus Program. $5,977,400 was funded immediately with the remaining $22,461,000 to be forward funded March 31, 2010 after the yield maintenance on the existing financing expires. The fixed interest rate on the forward portion is locked.The 356-unit garden apartment community built in 2000 features 18, two-story and seven three-story apartment buildings. Alliant’s loan has a 10-year term with a 30-year amortization. Capmark Finance Inc. Originates over $9M for Acquisition of 324-Unit Rental Community Webster, Texas–Capmark Finance…
Multi-Housing Executives Update: Former AIMCO CFO Jeff Adler Launches Multifamily Consulting Firm, and Other Moves
By Anuradha Kher, Online News EditorEnglewood, Colo.–Jeff Adler (pictured) the former chief property operations officer at AIMCO, has formed The Sanctuary Group LLC, a management consulting and investment banking firm for the multifamily industry. Adler will serve as president to the company, which will work on distressed property workouts, value added redevelopments, investment and operations strategy formulation, consumer target marketing, market selection, mid market capital funding, acquisition underwriting, consumer product and service feature design, and operational performance enhancement. “The Sanctuary Group enables a broad range of real estate investors and owner/operators access to expertise previously available only at larger multifamily…
California Developer Improves Energy Efficiency by More than 25% with Building Rehab
By Lisa Iannucci, Green Building CorrespondentSan Jacinto, Calif.–LINC Housing Corp., a Long Beach, Calif.-based nonprofit developer of affordable housing for families and seniors, recently acquired the Terracina Apartments in San Jacinto, Calif. The 55-unit complex, originally built in 1992, is undergoing improvements that include general maintenance as well as several green upgrades and renovations.The energy-efficient renovations include cool-roof radiant shingles, additional insulation, energy-efficient water heaters, heating and cooling systems, exhaust fans and appliances, double-paned windows; CFL lighting, and weatherstripping. “LINC Housing is proud to add Terracina Apartments to our portfolio of affordable communities,” says Hunter L. Johnson, LINC Housing president…
PNC Acquires National City Corp.
Pittsburgh–The PNC Financial Services Group Inc. will acquire National City Corp. for approximately $5.2 billion in PNC stock. An additional $384 million in cash is payable to certain warrant holders.PNC was one of the top national commercial/multifamily servicers by volume in MBA’s mid-year rankings this year. PNC ARCS, which was acquired by the PNC Financial Services Group in 2007, offers Fannie Mae, Freddie Mac, FHA and Capital Markets loans for all commercial property types. It has been among the Top five Fannie Mae DUS lenders for over a decade and is known for its expertise in multifamily financing.PNC plans to…
Apartments are the Only Housing Sector That Is Not Oversupplied, Affirms Witten
By Keat Foong, Executive EditorWashington, D.C.—The apartment market remains healthy although rental demand is slowing, said Ron Witten, president of Witten Advisors LLC, speaking this week at the National Association of Home Builders’ (NAHB) Fall Construction Forecast Conference. Witten said that apartment occupancy level has decreased by only half a point in the past 12 months, and is now at 95 percent on a national basis. Rent growth continues, but it has declined from 4 to 5 percent at its peak in 2006-07 to 2.3 percent in the second quarter this year. “Fundamentals are still quite good in the multifamily…
TODAY’S DEALS: NorthMarq Capital Arranges $21.5M Mortgage Refinance for Mixed-Use Condo Project
By Anuradha Kher, Online News EditorPhiladelphia–NorthMarq Capital Inc.’s New York City regional office recently arranged a $21.5 million mortgage refinance of existing debt for a 180,000 sq. ft. mixed-use condominium project located in The Packard Building (pictured) on the southeast corner of 15th and Chestnut Streets in Philadelphia. The 26-story project features residential sub-condominiums, which are not part of the collateral. Financing was based on a five-year term with a 30-year amortization schedule and was arranged for the borrower, Chest-Pac Associates L.P. by NorthMarq through its relationship with CW Capital, LLC.42-Unit Class A Rental Community Sells for over $3MNewton, N.J.–Town…
Q&A with Jim Scofield: Multifamily Prices Will Continue to Decline Until Market Turns Around
James M. Scofield (Jim) serves as a managing director/senior investment advisor of Sperry Van Ness/Scofield Multifamily Team, specializing in multifamily properties throughout North Carolina. Prior to joining Sperry Van Ness, Scofield served as a senior broker for Anthony & Co. He also served as vice president and partner of Colliers-Seeley, a full-service commercial real estate firm in Los Angeles. Scofield’s extensive background includes representing private investors, small businesses and large corporations in the analysis, purchase, sale and leasing of multifamily and other types of properties. He talks to MHN Online News Editor Anuradha Kher about how to evaluate properties in this…
Enterprise Supplies Tax Credit Equity to Fund Renovation
By Anuradha Kher, Online News EditorAugusta, Ga.–Progressive Redevelopment Inc. (PRI) and Enterprise Community Investment Inc. recently opened Cedarwood Apartments, a renovated 184-unit affordable apartment community, located at 527 Richmond Hill Rd. West in Augusta, Ga. The acquisition and renovation of Cedarwood Apartments was undertaken to preserve high quality affordable housing for this community. The property was structurally sound but in need of major upgrades to make it competitive with surrounding properties and to create decent, safe housing for its residents.The renovation included the replacement of roofs and siding, new windows and doors, a new energy efficient HVAC system and new…