Regions

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…

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.