News

By Anuradha Kher, Online News EditorMiddletown, Del.–Green Park Financial recently provided a $12.5 million refinance loan to Middletown Apartments, a 156-unit Class A apartment community, located in Middletown, Del.Green Park structured the loan with a 10-year term and 30-year amortization. The loan was underwritten to an 80 percent loan-to-cost with a 1.20x debt-service coverage ratio using a base-max loan structure with a letter of credit as additional collateral. The new Fannie Mae Delegated Underwriting and Servicing (DUS) guide allows for borrowers to close loans on properties in lease-up after one month of stabilized collections as opposed to the previous requirement…

By Anuradha Kher, Online News EditorNew York–Sky House, a 55-story, 139-unit luxury condominium tower located at 11 East 29th St. in Manhattan, is offering a 3,700-sq.-ft. duplex residence featuring a 300-sq.-ft., glass-enclosed winter garden on its 51st floor terrace. The winter garden duplex is part of what the developer is calling the property’s premier collection.The duplex features four bedrooms and a library, and is priced at $8.2 million. It has not yet been sold but there has been interest from buyers, according to the developer.“We are proud to unveil the exclusive homes that make up the premier collection of Sky…

By Anuradha Kher, Online News EditorWashington, D.C.– Rep. Ed Perlmutter (D-Colo.) today introduced the H.R. 6078, the Green Resources for Energy Efficient Neighborhoods Act of 2008.If passed, the legislation would raise the bar for environmental performance in affordable housing, authorizing new federal resources for green affordable development while providing incentive to the private sector to invest in green affordable homes for low-income people.Doris Koo (pictured), president and CEO of Enterprise Community Partners, testified before the House Financial Services Committee, at a hearing on this. “We commend Rep. Perlmutter for his leadership and vision in developing this bill, as well as…

In an attempt to cut back on U.S. greenhouse gas emissions, Senators John Warner (R-VA) and Joseph Lieberman (I-CT) introduced a bill to Congress that would reduce emissions in 2012 to 2005 levels and by 70 percent in 2050. The bill, known as either Warner-Lieberman or the Climate Security Act, would impose a cap-and-trade system. The Senate began debating the legislation last week, the first time since 2005 that a climate change bill has been discussed. MHN Associate Editor Erika Schnitzer talks to George Kehler (pictured) about the Warner-Lierberman bill, its impact on the multifamily industry and how the industry…

New York–New York-based ratings agency Moody’s downgraded six homebuilders on Monday, Forbes.com reports.Cash flow issues and low earning forecasts prompted Moody’s to lower ratings for Pulte Homes, Centex, Ryland Group, D.R. Horton, KB Home and Lennar.Pulte, Centex, Ryland Group, D.R. Horton and KB Home were cut from Ba1 to Ba2. Lennar fell from Ba1 to Ba3.

Washington, D.C.–The Federal Housing Administration announced $4.6 billion in losses Monday due to high home loan default rates, the New York Times reports.The F.H.A.’s seller-financed down payment mortgage plan–which has been hurt in recent years by rising foreclosure and delinquency rates–is partly to blame, according to commissioner Brian D. Montgomery.Weak traditional mortgage portfolio performance and poor economic conditions also contributed to the predicted deficit, which is the largest amount the F.H.A. will have lost since 2004.To make up for the costs, the agency withdrew $4.6 billion from its $21 billion capital reserve fund. The F.H.A. did not ask Congress for…

Chatham, Mass.–Federal Reserve chairman Ben Bernanke said Monday that–although inflation concern is increasing–the risk of a large economic downturn in the U.S. has decreased in the past month.Speaking at a Fed conference in Chatham, Mass., Bernanke said that the increased growth expectations were due to “the effects of the monetary and fiscal stimulus, a gradual ebbing of the drag from residential construction, further progress in the repair of financial and credit markets and still-solid demand from abroad,” the Financial Times said.However, Bernanke said that economic activity during the current quarter “is likely to be weak.””The ongoing contraction in the housing…

Beijing–The hot Chinese real estate market appears to be cooling off because of widespread credit issues, sinking prices and less transactions, the International Herald Tribune reported Tuesday.Property investment increased 32 percent in the first four months of 2008 in China–but a reduced amount of bank loans and increased borrowing costs have some building industry members concerned.Developers–who depend on cash from the sale of unfinished projects–are worried that declining home sales will hurt their ability to fund day-to-day operations and growth. Bank regulators and analysts fear a wave of defaulting property loans will surface.In Beijing, the number of residential transactions dropped…

By Anuradha Kher, Online News EditorSouth Bend, Ind.–Prime Property Investors Ltd. recently completed the acquisition of Clover Ridge Apartments, a 100 percent occupied student housing complex located in South Bend, Ind., for $ 10,250,000.The multi-building complex is situated within three blocks of the main campus of the University of Notre Dame and features one-, two- and three-bedroom apartments, ranging in rent from $795 to $1,250. The Clover Ridge Apartments community amenities include a swimming pool, clubhouse, fitness room, tanning bed, basketball court, tennis court and sand volleyball court. The property is spread across eight acres of land and offers on-site parking.The…

By Anuradha Kher, Online News EditorChristiansburg, Va.–Virginia Community Capital (VCC) and the National Housing Trust Community Development Fund (NHTCDF) recently launched an acquisition loan pool to help preserve Virginia’s affordable rental housing.With the help of private capital, VCC and NHTCDF have created a $30 million site acquisition loan pool called Preservation Acquisition Loan (PAL) to preserve and improve affordable rental homes in Virginia. PAL will provide flexible bridge financing of two to three years so affordable housing providers can acquire and hold affordable properties while they secure long-term financing.The fund is open to for profit and non-profit developers who will…