Regions

By Keat Foong, Executive EditorWashington, D.C.—The apartment market remains healthy although rental demand is slowing, said Ron Witten, president of Witten Advisors LLC, speaking this week at the National Association of Home Builders’ (NAHB) Fall Construction Forecast Conference. Witten said that apartment occupancy level has decreased by only half a point in the past 12 months, and is now at 95 percent on a national basis. Rent growth continues, but it has declined from 4 to 5 percent at its peak in 2006-07 to 2.3 percent in the second quarter this year.  “Fundamentals are still quite good in the multifamily…

By Anuradha Kher, Online News EditorPhiladelphia–NorthMarq Capital Inc.’s New York City regional office recently arranged a $21.5 million mortgage refinance of existing debt for a 180,000 sq. ft. mixed-use condominium project located in The Packard Building (pictured) on the southeast corner of 15th and Chestnut Streets in Philadelphia. The 26-story project features residential sub-condominiums, which are not part of the collateral. Financing was based on a five-year term with a 30-year amortization schedule and was arranged for the borrower, Chest-Pac Associates L.P. by NorthMarq through its relationship with CW Capital, LLC.42-Unit Class A Rental Community Sells for over $3MNewton, N.J.–Town…

James M. Scofield (Jim) serves as a managing director/senior investment advisor of Sperry Van Ness/Scofield Multifamily Team, specializing in multifamily properties throughout North Carolina. Prior to joining Sperry Van Ness, Scofield served as a senior broker for Anthony & Co. He also served as vice president and partner of Colliers-Seeley, a full-service commercial real estate firm in Los Angeles. Scofield’s extensive background includes representing private investors, small businesses and large corporations in the analysis, purchase, sale and leasing of multifamily and other types of properties.  He talks to MHN Online News Editor Anuradha Kher about how to evaluate properties in this…

By Anuradha Kher, Online News EditorAugusta, Ga.–Progressive Redevelopment Inc. (PRI) and Enterprise Community Investment Inc. recently opened Cedarwood Apartments, a renovated 184-unit affordable apartment community, located at 527 Richmond Hill Rd. West in Augusta, Ga. The acquisition and renovation of Cedarwood Apartments was undertaken to preserve high quality affordable housing for this community. The property was structurally sound but in need of major upgrades to make it competitive with surrounding properties and to create decent, safe housing for its residents.The renovation included the replacement of roofs and siding, new windows and doors, a new energy efficient HVAC system and new…

By Erika Schnitzer, Associate EditorLivingston, N.J.—Sterling Properties is encouraging renters to apply past rent payments towards the price of a new home in its “Upgrade-to-Ownership” program.”There are many renters at our communities that are interested in becoming homeowners so they can stop the cycle of paying rent without building equity,” says Rosanne Brooks, director of sales and marketing for Sterling. “Some of these individuals are hesitant to purchase a home now as a result of their perceptions of uncertainty with regard to the current financial climate.” Renters can apply up to $25,000 of last year’s rent towards homes at some…

By Keat Foong, Executive EditorWashington, D.C.—The 2008 bank credit crunch may be even more severe than that of the early-1990s recession, suggested Ron Witten, president of Witten Advisors LLC. Witten was speaking at the National Association of Home Builders’ (NAHB) Fall Construction Forecast Conference this week. Witten pointed out numbers from the Federal Reserve Board showing that 81 percent of banks surveyed are cautious about commercial real estate lending in 2008. This number compares with a high of 60 to 70 percent who were cautious in 1990, according to a graph displayed at the presentation. “The banking credit crunch is…

By Erika Schnitzer, Associate EditorPhiladelphia—The U.S. Department of Housing and Urban Development (HUD) and the Philadelphia Housing Authority (PHA) have signed an agreement that the PHA will certify 760 accessible housing units, or 5 percent of its housing stock, by 2013.In exchange, the PHA will continue to operate under HUD’s “Moving to Work” (MTW) program, which allows housing authorities to promote self-sufficiency among families receiving HUD assistance and increases housing choices among low-income households, for the next 10 years.“It’s a win-win for the people of Philadelphia,” says Jerry Brown, public affairs officer for HUD. “One of the concerns is that…

By Anuradha Kher, Online News EditorLos Angeles–Monem Corp. recently acquired a 24-unit multifamily community, located at 5463 Carlton Way in Los Angeles, for $3.3 million.  Tony Azzi of Marcus & Millichap represented Monem Corp. and the seller in this acquisition.“Though the financial market continues to struggle, we were able to secure a very attractive three-year fixed loan at six percent with 30 percent down to acquire Carlton Way,” says Danny Monempour, president of Monem Corp. “We will continue to actively look to acquire multifamily properties in the Los Angeles area.”Built in 1965, 5463 Carlton Way is 100 percent leased and…

By Anuradha Kher, Online News EditorWashington, D.C.–Economic growth in the second half of 2008 will be negative and remain negative through the first half of 2009 before a modest recovery, according to the latest economic forecast released by the Mortgage Bankers Association (MBA). MBA expects growth to pick up strongly by the end of 2009 and over the course of 2010. The total residential mortgage production in 2009 is expected to be $1.67 trillion, down from an expected $1.86 trillion in 2008 and $2.3 trillion in 2007, according to MBA’s forecast.”A recession appears to be underway, as evidenced in rising…

By Anuradha Kher, Online News EditorDiamond Beach, N.J.–Chester, Penn.-based development company, Mita Management, is nearing completion on its 125-unit first phase of The Grand at Diamond Beach, a luxury condominium project located on Diamond Beach, the last piece of property that can be developed on the southern Jersey shore.This phase will be ready in the summer of 2009 while the other two phases are expected to be complete in the next 10 years. “We initially thought we would complete all three phases in seven years,” Eustace W. Mita, chairman of Mita Management, tells MHN. “But we had to change the…