Regions

By Anuradha Kher, Online News EditorWashington, D.C.–While most investor groups increased holdings, Commercial Mortgage Backed Securities (CMBS) declined in the second quarter of 2008, according to the Mortgage Bankers Association’s (MBA) analysis of the Federal Reserve Board Flow of Funds data. The level of commercial/multifamily mortgage debt outstanding grew by 1.5 percent in this period, to $3.44 trillion.This is an increase of $51.3 billion over the first quarter 2008. The $16 billion increase in multifamily mortgage debt outstanding between the first quarter and second quarter of 2008 represents a 2 percent increase. In dollar terms, the Government Sponsored Enterprises saw…

By Anuradha Kher, Online News Editor Washington, D.C.–The House last week passed the Green Resources for Energy Efficiency Act (the G.R.E.E.N. Act, H.R. 6078) as part of the Comprehensive American Energy Security and Consumer Protection Act (H.R. 6889) by a vote of 236 to 189.The G.R.E.E.N. Act, bipartisan legislation introduced by Rep. Ed Perlmutter (Colo.), aims to strengthen the Department of Housing and Urban Development’s (HUD) commitment to energy efficiency while providing needed flexibility.  “The Act instigates a demonstration program of 25,000 units, which will study the cost-efficiency of going green and this will be extremely valuable,” Linda Couch, deputy…

By Anuradha Kher, Online News EditorLondon–Sovereign Wealth Funds (SWFs) will potentially invest as much as $725 billion in the world’s commercial property markets over the next seven years, according to a new global report from CB Richard Ellis Group Inc. Although more than half of the SWFs are believed to already hold direct commercial real estate investments, allocations to the sector are expected to rise substantially. The potential impact on the global real estate market is significant. Ray Torto, chief global economist at CB Richard Ellis, explains, “Given that the real estate sector’s investment characteristics – current income combined with long-term appreciation…

By Erika Schnitzer, Associate EditorMilton, Vt.–Enterprise Community Investment Inc. has closed a U.S. Department of Agriculture Section 538 Rural Development loan, providing $1.1 million in financing for Meadowlane Apartments.The financing is part of a $6 million renovation of the property by The Housing Foundation Inc. and the Vermont State Housing Authority. The program provides loans for acquisitions, new construction and rehabilitation of affordable multifamily rental properties in rural areas.The apartment community currently includes 20 age-restricted apartments that offer Section 8 housing subsidiaries. Additionally, 16 new apartments will be built on the development.Meadowlane Apartments will receive a $360,000 HOME program loan…

By Erika Schnitzer, Associate EditorDenver–Multi-Housing World’s widely popular “60 Ideas in 60 Minutes” session drew management suggestions from 11 leading multifamily experts. The panel, moderated by Anne Sadovsky, certified speaking professional, proposed innovative ideas for use across the industry and to help properties stay competitive in their marketplaces.The dynamic panel was made up of Toni Blake, president, TotallyToni.com; Eve Bradford, president, Excel Training & Consulting Inc.; Tracey Hopkins, owner, Jumpstart Marketing; Joe Kaye, director of sales & marketing, Direct Energy; Cathy Macaione, president, CMA Direct; Wendy Muse, vice president of marketing and training, Tarragon Corporation; Terri Norvell, professional speaker and…

By Keat Foong, Executive EditorDenver–Speakers contemplated reduced levels of capital availability at a session addressing equity financing at the Multi-Housing World 2008 Conference and Exhibition, held from Sept. 16 to 19 in Denver. The session, entitled “How to Fund Your Project (II): Finding, Negotiating and Structuring Equity Financing,” was moderated by Brian Ward, managing principal, Big Rock Partners. Panelists at the session said that institutional investors have cut back on providing equity. And while preferred equity and mezzanine capital, as well as private syndication capital, are still available, they are greatly more expensive to obtain. Ward outlined the three types…

By Anuradha Kher, Online News EditorNew York–The Ascend Group recently topped off Georgica, a 20-story condominium project in Manhattan’s Upper East Side neighborhood. All 20 stories are now up and glass paneling is being installed. Located at 305 East, 85th St., the 58-unit development features gourmet kitchens and amenities such as a children’s playroom, a fitness center and an impeccably landscaped rooftop deck with a playground. In addition, the all-glass tower offers plenty of light and air. “We are not a huge development and offer residents more of a boutique-feel with just 58 residences and two to four residences per…

By Keat Foong, Executive EditorDenver–Panelists speaking at a session at Multi Housing World 2008 Conference and Exhibition encouraged the audience to recognize the characteristics of the children of the Baby Boomers and target their marketing appropriately. The title of the session was “Reader’s Choice: Apartments Benefit During Downturn.” Moderator Jennifer Cox Cyphers, president of Multifamily Edge, The Cyphers Group, noted that there are 70 million Echo Boomers who will be in the market over the next 10 years. Echo Boomers are collegial, civic minded, collaborative, have good manners and are close to their parents, said Jeffrey Adler, chief property operations…

By Keat Foong, Executive EditorDenver—The official word is that it is “business as usual” for Fannie Mae and Freddie Mac multifamily financing despite the recent government takeover of the two agencies, said Cheryl Higley, director of real estate mortgage capital at RBC Capital Markets.Higley was speaking at the session titled What is Happening in the Capital Markets and How Does it Affect Your Business at the Multi Housing World 2008 Conference and Exhibition. “The media hype” about the housing problems for the agencies falls on the single-family, and not the multifamily side, said Higley. Multifamily agency lending is “still operating…

By Teresa O’Dea Hein, Managing EditorDenver–“Our world is changing fast and our customers are changing, but we as an industry are not fast to change,” pointed out Joe Peterson, president of Insight Real Estate Group, during Thursday morning’s Leaders Forum: The View from the Top. People sometimes blame market conditions for a lack of leasing activity, Peterson added, when they’re “just doing a crappy job, and still not doing the fundamentals” like first getting a prospect’s name and making sure they publish clear directions to a multifamily property.“The real key is marketing,” Peterson continued, “and that’s changed completely–today, we have…