News

By Erika Schnitzer, Associate EditorWashington, D.C.–As the industry sees an increase in a demand for denser communities, the National Multi-Housing Council (NMHC) and the Urban Land Institute (ULI) have produced a toolkit publication entitled “Getting Density Right: Tools for Creating Vibrant Compact Development.””We have pushed the boundaries of suburbia as far as we can in certain markets,” says Doug Bibby, NMHC president. “With the rising cost of gas, people are turning more to downtown areas to get closer to jobs.”The publication is targeted towards municipal leaders, planning officials, zoning officials, policy makers and the media. It is based on information…

By Anuradha Kher, Online News EditorWood-Ridge, N.J.–AvalonBay Communities has joined the development team at Wesmont Station, a 70-acre mixed-use, transit-oriented development currently underway in Wood-Ridge, N.J.Wesmont Station is the only project in northern New Jersey that has been selected as a pilot project in the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) neighborhood development initiative. The project features close to 800 residential units, retail and office space, as well as a new train station that will connect with the Bergen Line commuter rail to Manhattan, New York.“This pilot will help develop LEED standards for neighborhood development…

By Anuradha Kher, Online News EditorWashington, D.C.–Despite hitting a low in February this year, the FTSE NAREIT All REIT Index outperformed other major market benchmarks so far in 2008.Through the first five months of 2008, the FTSE NAREIT All REIT Index was up 6.46 percent, while the FTSE NAREIT Equity REIT Index was up 8.17 percent, as other market benchmarks remained in negative territory to start the year (the NASDAQ Composite down 4.89 percent, the Dow Jones Industrials down 4.72 percent, the S&P 500 down 3.80 percent, and the Russell 2000 down 1.81 percent).For the year so far, residential REITs…

Chicago–The National Association of Realtors’ pending sales index grew 6.3 percent from March to 88.2 in April, Bloomberg reported Monday.Sales picked up considerably in regions where home prices have severely declined, the Chicago-based NAR said.”Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” said Lawrence Yun, NAR chief economist.The NAR predicts that existing home sales will be at 5.40 million this year and 5.74 million in 2009. In 2007, 5.65 million existing homes were sold.Comprised using signed pre-existing home contracts, the April 2008…

McLean, Va.–Freddie Mac’s 2008 financial results will be stronger than its 2007 numbers, according to chief executive officer Richard Syron.Declining home prices and credit market issues have caused big losses at McLean, Va.-headquartered Freddie Mac, but guarantee-fee income growth and stronger mortgage pricing will help counteract deficits, The Wall Street Journal said Monday.”The revenue engine is showing more horsepower, thanks to volume and appropriate changes in credit terms and prices,” Syron said in a speech to stockholders Friday. “We are quite confident that the positive changes will offset the negative.”However, Freddie Mac said its 2008 loss provision may grow by…

Columbus, Ohio–Home equity loan defaults are increasing–highlighting how the financial crisis is transforming from large bank writedowns to lending issues at smaller banks like Huntington Bancshares in Columbus, Ohio, according to the Financial Times.Home equity loan defaults mean potential big problems for regional banks; if one folds, it may set off a series of mergers, the Times said.In the last six months, home equity loan-related losses have more than tripled to 1.54 percent of unresolved loan volumes.As home prices continue to decline in California and other states where some of the biggest home equity loan portfolios are located, defaults could…

New York–As the credit crisis continues, New York-based investment bank Lehman Brothers announced a $2.8 billion second quarter loss on Monday and said it will gather up to $6 billion in investor capital.The losses were the result of a decline in asset value and trading activity losses, the New York Times said.The firm earned $489 million in the second quarter of 2007. Lehman has been fighting with short-sellers who expressed concern about the firm’s borrowing and the method it uses to determine a value for illiquid assets, including residential and commercial mortgages.

By Erika Schnitzer, Associate EditorBoston–Phoenix Property Co., a Dallas-based real estate development firm, has submitted a Draft Project Impact Report to the Boston Redevelopment Agency (BRA) for the first purpose-built private student residence hall in Boston.The original building design was submitted to the BRA in April 2007. There was a significant reduction in the number of beds—from 1,140 to 793—the height—from 34 to 24 stories, explains Jason Runnels, executive vice president and a principal for Phoenix Property Co. “We changed some of the massing to accommodate a few of the city’s requests with respect to how the project laid out…

By Anuradha Kher, Online News EditorBaltimore–Alliant Capital recently closed a $1,525,000 second lien loan, collateralized by the Apostolic Towers Apartments located at 201 N. Washington St. in Baltimore.Apostolic Towers Apartments features a 149-unit, 12-story building built in 1979. Alliant provides return of equity to its borrowers through structured subordinate financing behind its own senior debt.