News
Hovnanian Posts Second Quarter Loss; Expects Solid Year
Red Bank, N.J.–U.S.-based homebuilder Hovnanian Enterprises said Tuesday that its fiscal second quarter loss was 10 times greater than a year earlier. However, Hovnanian, headquartered in Red Bank, N.J., said it had enough liquidity to handle the lower demand and plans to stay cash-flow positive for the entire fiscal year, CNBC reported Wednesday.Hovnanian announced a net loss of $340.7 million, compared with a loss of $30.7 million a year before. Quarterly revenue dropped from $1.1 billion to $776.4 million. The builder’s contracts for the quarter dropped 29 percent from 2007 to 2,226 homes.
New York General Contractors, City Considering Ways to Increase Crane Safety
New York–Some of New York’s largest general contractors are contemplating hiring external inspectors to increase tower crane safety as a result of last Friday’s fatal construction site crane collapse, the New York Times reported Wednesday.The city uses about two dozen tower cranes, and the current Department of Buildings inspections–as well as separate inspections by crane owners and operators–aren’t enough to fully protect the sites, according to contractors. Investigators think that the crane that plummeted into a 23-story building on East 91st Street last week wasn’t welded correctly during a repair. Two construction workers died; the Manhattan district attorney’s office is…
Using Architectural Branding to Make Your Project Speak
By Gordon R. Carrier, Founding Member and Design Principal, Carrier Johnson + CULTUREJust because they’re inanimate doesn’t mean buildings can’t speak. In fact, their non-verbal voices evoke powerful human emotions about “home.” Where and how we live is an expression of our personality, hopes, fears, aspirations and sense of community. To be successful in this increasingly competitive market, each multifamily project must serve as an ambassador, issuing a personalized invitation to a particular clientele. In real estate marketing language, this message is called “architectural branding.”Define “Home”A brand is the personification of a product, expressing its core values and characteristics while…
DEAL OF THE DAY: Boston Capital Invests $11.44M in New 146-Unit Development
By Rachel Block, ReporterForth Worth, Texas–Boston Capital recently invested $11,440,000 in the Residences at Eastland in Forth Worth, Texas, a 146-unit community planned to be built about six miles southeast of Forth Worth’s major business district. The general partner on this deal is an affiliate of The NuRock Cos.The forthcoming development is targeted at low-income families and individuals through the Low Income Housing Tax Credit (LIHTC) program, and will be available to residents making 60 percent or less of the Area Median Income (AMI). Spread over 28.54 acres, the development will 80 two-bedroom units, 60 three-bedroom units, and six four-bedroom…
RULES & REGS: Mass. Governor Signs Investment Bill for Affordable Housing
By Erika Schnitzer, Associate EditorBoston–Massachusetts Governor Deval Patrick has signed into law the state’s largest housing bond authorization, which will help fund the Commonwealth’s many housing and community development projects.“This is an investment in the future of the Commonwealth, both for the residents and for long-term economic prosperity,” says Phil Hailer, the spokesman for the state Department of Housing and Community Development. Additionally, at 50,000 units, Massachusetts has one of the nation’s largest public housing portfolios. Over the next five years, the $1.275 billion bond bill will not only preserve affordable housing for people of all income levels, but also…
Wachovia CEO’s Ouster is Sign of Changing Times on Wall Street
By Anuradha Kher, Online News EditorCharlotte, N.C.–The firing of Wachovia’s CEO indicates the changing times in the financial markets, according to Ernie DesRochers, senior vice president and managing director of NorthMarq Capital. “There is disciplined underwriting in the market today. Where once the glass was viewed as half full, today it is viewed as half empty. People are not as aggressive.”Wachovia Corp. ousted its CEO, G. Kennedy Thompson this week after months of criticism from shareholders and the company’s weak financial performance.“These are the ways of Wall Street. The whole thing hasn’t shook out yet and there will be more…
Multifamily Financings Fall 27% in First Quarter, Less than in Other Real Estate Sectors
By Anuradha Kher, Online News EditorWashington, D.C.–Loan originations for commercial and multifamily mortgages fell on a year-over-year basis in the first quarter, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. First quarter originations were 53 percent lower than during the same period last year. The year-over-year decrease was seen across all property types and most investor groups. “Three trends jump out from this quarter’s figures: the impact of the credit crunch, a return from the extraordinary record origination volumes of 2005, 2006 and 2007 and strong variation between different investor groups,” says Jamie Woodwell, MBA’s…
Special Report from AIA National Convention: Top Architecture Trends
By Erika Schnitzer, Associate EditorBoston–In keeping with the concerns of today’s society, this year’s AIA (American Institute of Architects) national convention and design exposition placed great emphasis on the role of social responsibility within architecture. Many of the growing trends demonstrated at the show involved awareness of the impact architecture has on the world, as well as advances in new technologies to improve upon design.”BIM (Building Information Modeling) and sustainable design were the two areas of interest at the convention,” notes Sandi Susanto of Seattle-based Weber Thompson. “We are interested in BIM and are currently talking with vendors and other…
Continued Mortgage Woes Prompt Executive Changes at Wachovia, WaMu
Charlotte, N.C.– As the mortgage market fallout continues, Charlotte, N.C.-headquartered Wachovia Corp. fired its chief executive and Seattle-based Washington Mutual Inc. removed its CEO from his chairman’s post this week.Both banks are big players in the home loan market and have lost billions, which has had a huge effect on the stock market, according to the Los Angeles Times.On Monday, Wachovia–which became heavily involved in California’s adjustable-rate mortgage market in 2006–removed CEO Kennedy “Ken” Thompson. Wachovia had a $393 million first quarter loss and cut its dividend by 41 percent.In April, the lender agreed to pay $18.9 million to federal…
Bank of America CEO Expresses Approval of Planned Countrywide Purchase
Charlotte, N.C.– Bank of America CEO Ken Lewis reaffirmed his belief Monday that–despite housing market issues–purchasing mortgage company Countrywide Financial Corp. is still a solid investment, the New York Times said.Speaking to investors on a conference call sponsored by Deutsche Bank, Lewis said the housing market would pick up by early 2009. Countrywide’s sales force will help Charlotte-based Bank of America–the second largest U.S. bank–increase its market share in the mortgage industry, he said.The bank is purchasing Countrywide for roughly $4 billion; however, some fear Countrywide’s loan portfolio–along with the declining mortgage market–could cause expensive losses and hurt Bank of…