News
SPECIAL REPORT: Time to Develop Condos Again in Washington, D.C., Says Expert
By Keat Foong, Executive EditorWashington, D.C.—Believe it or not, according to a researcher, now may be the time to begin building condominiums projects again in the Washington, D.C. metropolitan area. Speaking at Delta Associates’ regional economic and market trends and outlook presentation here, Gregory Leisch, CEO, projected that condo inventory in the market will be seven years’ worth by the end of 2008—indicating excess supply by any measure. However, Leisch said that given current condo absorption/reversion rates and supply levels, more than one year hence, the condominium inventory would have declined to levels that are closer to those in the…
President Bush Signs Revised Version of $700B Bailout Package Shortly after House Passes Bill
By Anuradha Kher, Online News EditorWashington, D.C– It was an eventful day today as Wells Fargo & Co. bought Wachovia for about $15.1 billion in stock and the House of Representatives approved today the revised $700 billion bailout package for the financial system by a vote of 263 to 171. Most Democrats favored the bill (172 for and 63 against), while a slighter majority of Republicans voted against (91 for and 108 against). A number of popular tax provisions were added to the bailout bill, which President George W. Bush quickly signed into law. He said it would take some…
Rent Increases Lag Inflation Rate
Interest Rates: Interest rates aren’t moving much – which may not matter much, because hardly anyone is lending money to anyone, for anything. The most recent meeting of the Federal Open Market Committee didn’t result in a change in the federal funds rate or the cost of money generally. But with the capital markets in flux, it appears that many, if not most, lenders are sitting on what money they have and waiting things out. Building Materials: Building material prices are, for the most part, holding fairly steady. Cement and softwood lumber are up slightly, and plywood down slightly. But…
Midwest Market Cooling but Stable
The heartland is posting fairly healthy reports this year for the multifamily sector. Many owners in Chicago and Kansas City have increased occupancy rates and posted rent increases over the course of the last 12 months. However, sales of apartment communities have been a different story in both locales due to credit issues and rising cap rates. In 2008, a number of Chicagoland apartment owners have seen continued improvement, or at least stability, in occupancies and even rent increases over the course of the last year, but the shadow market is poised to strike. Sales transactions of apartment communities, on…
Q&A with Joseph Mullen: Days of Putting Little Equity Down for High Leverage Are Gone
Joseph Mullen (pictured) is senior vice president and director of multifamily investments for Madison Apartment Group, owned by BPG Properties Ltd. (BPG)Mullen has been with BPG for 20 years and has been involved in all types of real estate investments. In 2001, he was instrumental in the formation of Madison Apartment Group, L.P., BPG’s multifamily operating arm, and was named president at its inception. Mullen is responsible for the acquisition, investment management and operation of Madison’s extensive multifamily portfolio. Most recently, Mullen guided Madison in the second largest multifamily acquisition the firm has ever made when it purchased the Boston…
TODAY’S DEALS: Sperry Van Ness Completes $56.5M Sale of Senior Housing Community, and other Transactions
By Anuradha Kher, Online News EditorLos Angeles–Sperry Van Ness has completed the sale of a 309-unit senior housing community (pictured) for $56.5 million to New York-based The Related Cos. The property, located at 740 S. Olive St. in Los Angeles, garnered 17 offers in three weeks and closed for $3.5 million over list price. Related will continue to run the property as affordable housing for low-income seniors. The company plans on investing another $9 million in renovations and upgrades to the property.“Senior housing is a safe investment in today’s economy, especially considering that Los Angeles county is home to more…
Multifamily Is Most Attractive Investment Opportunity, Say 50% of Respondents in DLA Piper Study
By Anuradha Kher, Online News EditorNew York–Following September’s unprecedented events on Wall Street, the current credit crisis has now eclipsed the savings and loan crisis of the late ’80s and early ’90s as the event with the single-greatest impact on the U.S. real estate industry over the last 20 years, according to a national survey conducted by global law firm DLA Piper. Sixty-two percent of those surveyed say they do not expect the real estate markets to stabilize until 2010. The survey, measuring the attitudes and perspectives of 424 top executives within the commercial real estate market, also reveals that…
Luxury Rental in Ft. Lauderdale Offers Residents Condo-Like Options
By Erika Schnitzer, Associate EditorFort Lauderdale, Fla.–The leasing center for Altman Development’s Satori, a 279-luxury mixed-use rental community in Fort Lauderdale, Fla., is slated to open in the next few weeks. Leasing will begin at that time.The leasing center features an interactive Sales Touch System, which allows prospective residents the ability to search for an apartment on a 40-in. touch screen, using their own criteria. Additionally, Satori is the first rental community in South Florida to offer resident apartment customization. We have an actual sample of our kitchen and master bathroom in the leasing center, so prospective residents can walk…
Financial Bailout Package Update: Passes Senate, House May Vote by Friday
By Anuradha Kher, Online News EditorNew York–The Senate voted 74-25 last night for the $700 billion economic bailout plan, the House rejection of which caused panic among investors and the stock markets to plunge on Monday. So far, most multifamily executives have endorsed the bill, many saying that something needs to be done to ease the credit crunch.Patrick S Madore, vice president, mortgage banking at Thomas D. Wood & Co., agrees for the most part except, he tells MHN, “I am not a 100 percent behind this package. The politicians are using this as a vehicle to push a lot…
Create an Upbeat, Can-Do Workforce and Dazzle Residents
el good. You can’t be depressed when you are smiling, and smiles are contagious. So, smile. As a manager, as a leader, it’s your responsibility to help to create an experience for your customer – your valuable residents – that has the word “value” all over it. Customers respond better to a company that provides them with a quality product at a fair price served up by positive, upbeat, can-do people. Aw come on, who wants to do business with a grump? JoAnna Brandi is publisher of the Customer Care Coach, a weekly training program on mastering “The Art and…