Headlines
Top Story
Bankers Tout Multifamily Rebound at Conference
Industry News
Some Louisville-Area Apartments See 90 Percent Occupancy
NYC Condo Project Comes Back to Life as Apartments
Advantage in Austin Shifts to Apartment Owners 
Outlook Is Bleak for Home Sellers This Spring
Aimco Files Registration Statement
BRE Properties Acquires Development Sites in San Francisco
Commercial Real-Estate CDO March Delinquencies Fall
Foreclosure Crisis Shifts to Multifamily in NYC
Legislative/Legal News
Some Pet Owners Skirt Rules With Fake Service Dogs
San Francisco Apts May Soon Deal With Mandatory Retrofits
Apartment Communities Offer Major Solar Potential
Centrist Dem Group to Offer Housing Market Reform Proposal
N.C. Apartment Owners Protest Fee
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
Bankers Tout Multifamily Rebound at Conference
Digested From "Multifamily Stages Comeback"
American Banker (04/13/11) P. 10; by Lew Sichelman
BankUnited executive Patrick Fitzgerald told a real estate lending conference in Baltimore this week that multifamily housing "is in a full-fledged healing mode." Vacancies are hovering at 6.6 percent nationally, down from 8.1 percent a year ago, and rents rose in the last three months of 2010 for the third consecutive quarter, added Kimball Griffith of Freddie Mac. Griffith said demographics also are in apartments' favor, with echo boomers, immigrants, and former homeowners adding to the renter pool.
Industry News
Some Louisville-Area Apartments See 90 Percent Occupancy
Digested From "Occupancy Rates Pass 90 Percent at Some Apartment Complexes"
Louisville Business First (04/15/11) by Kevin Eigelbach
After years of struggling to fill their apartments, Louisville-area apartment owners and managers report that they are currently enjoying a healthy season of leasing. Indeed, occupancy rates have climbed well above the 90 percent mark at numerous local communities. This, in turn, has sparked interest in the purchase of apartments in and around the city, reports area apartment owners and industry analysts. Many think this trend will eventually shift to renewed interest in building new apartment communities once banks loosen their tight lending practices. The high occupancy rates reflect the fact that many people have lost their homes due to the harsh economic times. Others say it is an indication of improved job creation, too, with Louisville-based companies hiring more workers from out of town.
NYC Condo Project Comes Back to Life as Apartments
Digested From "Project Comes Back to Life"
Wall Street Journal (04/18/11) by Craig Karmin
In downtown Manhattan, a high-profile condominium conversion project by developer Kent Swig that ran aground during the downturn is coming back to life as rental apartments. The leasing office at 25 Broad St. opened on April 18, offering one-bedroom apartments starting at $3,133 a month and two-bedroom units beginning at $5,205. Swig attempted to convert the building from office space into for-sale condos, but he defaulted on his mortgage loan in 2008. One year later, a New York state court appointed a receiver to determine the project's fate. Analysts say the new conversion plan reflects the often stronger demand for rental apartments than for condos in New York's slowly recovering housing market. The Financial District where 25 Broad St. is located is indeed showing renewed life as evidenced by increasing competition among owners lately as thousands of new units hit the market. The 20-story building was built in 1902 and was at one time considered one of the nation's most valuable office properties.
Advantage in Austin Shifts to Apartment Owners
Digested From "Austin Rental Rates on the Rise"
KXAN36 News (Austin, TX) (04/14/11) by Doug Shupe
According to the Austin Apartment Association, rents increased 4.6 percent locally in the last year and apartments are 93.2 percent occupied. Both of those numbers are expected to rise. "The market has completely changed. Austin is hot again," said Orlando Garza with Apartment Finders Service. He adds that the advantage has once again shifted to apartment owners as evidenced by fewer move-in specials. Momark Development President Terry Mitchell explains that supply has stayed the same even as demand has risen, which is driving up prices. Four new Austin-area apartment communities are in the works, with 33 others in the planning stages. Mitchell, though, says that is nowhere near enough. In the meantime, apartment residents may see rent increases of 50 to 400 dollars or more a month, which may encourage some of them to make the leap into homeownership.
Outlook Is Bleak for Home Sellers This Spring
Digested From "Home for Sale This Spring? Your Outlook is Bleak"
MarketWatch (04/13/11) by Amy Hoak
With home-price declines, more foreclosures to come, and slow improvements in the employment market, real estate analysts say this year’s buying and selling season likely will be another bust. Some are using the dreaded phrase "double dip" to describe trends in the housing market, and that may be especially true in the West where home prices dropped 4.3 percent in the first quarter from the last three months of 2010. Nationally, home prices were down an average 3.1 percent in January compared with the year before, and the national median price on an existing home fell 5.2 percent the following month. Jason Kopcak, head of whole loans at Cantor Fitzgerald, says prices could fall 10 percent to 15 percent on a national basis this year. Though there is not an abundance of buyers, Realtor.com data shows that home searches have been up nationally by 8.5 percent in February from the year before. Still, sales of existing homes were down 2.8 percent in February, compared with the same month last year, and sales of new homes were down 28 percent in February year over year. On top of this, many would-be-buyers face challenges in qualifying for a mortgage. An expected increase in foreclosure inventory, a slow-moving employment market, and general uncertainty about government decisions that would affect cost of homeownership are other factors weighing on homeownership.
Aimco Files Registration Statement
Digested From "Apartment Investment and Management Company Files Registration Statement and Updated Prospectus Supplement for Existing at the Market Offering Program"
Business Wire (04/14/11)
Apartment Investment and Management Company (Aimco) has filed an automatic shelf registration statement for Aimco and AIMCO Properties, L.P. in order to replace the existing shelf registration statement expiring this month. The new shelf facilitates equity and debt offerings by Aimco or the OP, though there are presently no plans for any such offering other than the existing ATM offering program. The existing ATM program originally provided for Aimco to sell up to seven million shares of its common stock from time to time. If any sales are made, they would be made in "at the market" offerings.
BRE Properties Acquires Development Sites in San Francisco
Digested From "BRE Properties Announces Acquisition of Development Sites in San Francisco's Mission Bay District"
TheStreet.com (04/13/11)
BRE Properties Inc. confirms that it has acquired land for future apartment development in San Francisco's Mission Bay district, with a total purchase price of more than $41 million. The parcels of land are located along San Francisco's waterfront adjacent to the San Francisco Giants' ballpark. Phase I will include 170 market-rate apartments and 17,000 square feet of retail. Phase II can be developed with an additional 190 market-rate apartments. Future residents will be a part of the expansive Mission Bay master plan redevelopment, which will include everything from 6,000 residential units to 280,000 square feet of neighborhood-serving retail to 4.4 million square feet of commercial, medical, and biotech lab space. Stephen C. Dominiak, BRE's executive vice president and chief investment officer, states, "We are excited about developing two of the last remaining market-rate apartment parcels in the Mission Bay master plan. The lack of available land, strong anticipated revenue growth, limited supply, and proximity to local employers and mass transit will create an ideal environment to support BRE’s future growth in the San Francisco marketplace." BRE expects pre-development work to commence over the next 12 to 15 months, with construction commencing in the summer of 2012. BRE is a San Francisco-based REIT that owns apartment communities throughout Northern and Southern California and Seattle.
Commercial Real-Estate CDO March Delinquencies Fall
Digested From "Fitch: US Commercial Real-Estate CDO Delinquencies Down in March"
Wall Street Journal (04/15/11) by Matt Jarzemsky
Delinquencies on debt packaged into commercial real-estate collateralized debt (CDO) obligations fell last month as loan payoffs helped snap a recent rising streak. The rate was helped by such developments as two defaulted loans backed by interests in a Las Vegas hotel being paid off in full. Still, many commercial building owners are continuing to have a difficult time servicing their debts as rents and occupancy rates remain historically low for such assets as apartment communities, office buildings, and shopping malls. At the same time, slumping property values and tighter credit have made it harder to refinance or sell troubled property loans. According to Fitch, the delinquency rate dipped to 14.1 percent in March from 14.6 percent a month earlier. In the last year, it had mostly hovered between 12 percent and 13 percent.
Foreclosure Crisis Shifts to Multifamily in NYC
Digested From "Foreclosure Crisis Shifts to Multifamily Buildings"
Crain's New York Business (NY) (04/12/11) by Marine Cole
The housing crisis continues to take a toll on apartments in New York City, with multifamily housing with five or more units that hold most of the city's residents drawing more foreclosure notices in the last two years than any period since the early 1990s, according to a report published by New York University's Furman Center for Real Estate and Urban Policy. "What struck us was the changing nature of the foreclosure crisis in the city," explains Ingrid Ellen, faculty co-director of the center. "People talk mostly about single-family housing, but we're seeing a rise in the number of multifamily properties that are seeing foreclosures." More than 2,100 multifamily properties received foreclosure notices in the past five years, affecting as many as 44,000 households. Brooklyn has been most heavily affected by this trend in multifamily foreclosures -- seven of the Top 10 neighborhoods with the most foreclosure notices are located there. The impact of such findings is widespread, affecting both apartment residents who may have to vacate the foreclosed buildings and the community. Ellen says the buildings receive an average of 21 percent more violations during the quarter when the formal notice is filed.
Legislative/Legal News
Some Pet Owners Skirt Rules With Fake Service Dogs
Digested From "Some Pet Owners Skirt Rules With Fake Service Dogs"
Seattle Times (04/17/11) by Wayne K. Roustan
More and more pet owners are passing their animals off as service dogs by using phony credentials. Such impostors log onto the Internet to buy vests, ID cards, and certificates for their canines as part of a deception that will allow these pets to live in restricted housing, accompany them inside restaurants and hotels, or fly for free in airplane cabins instead of in cargo holds. Those who fake a disability and/or pretend their animal is a service pet risk at least a fine or, in the most extreme cases, federal fraud charges. Authorities say the best way to tell if a service dog is legitimate is to observe its behavior. Service dogs will almost never appear restless or bark or jump. Additionally, they will obey the disabled owner's commands, perform tasks, and lie down passively when and where instructed. In March, the Justice Department amended guidelines to narrow the definition of service animals to dogs that are trained to perform specific tasks related to the owner's proven disability. Under the new federal rules, dogs that provide emotional comfort are not considered service animals. Still, dogs, monkeys, ferrets, and other support animals continue to be permitted in airplane cabins under the Air Carrier Access Act, and in homes under the Fair Housing Act as long as there is appropriate proof from the owner's doctor. By law, a disabled person can be asked only two questions about his or her service dog: "What tasks or assistance does the dog provide you with?" and "Is this a service dog for disabilities?"
San Francisco Apts May Soon Deal With Mandatory Retrofits
Digested From "Fewer Participating in San Francisco's Soft-Story Retrofit Program"
San Francisco Examiner (04/17/11) by Katie Worth
Almost one year after San Francisco launched a voluntary program for property owners to retrofit their soft-story buildings -- structures city officials have identified as among the most likely to collapse during an earthquake -- only 26 people have taken part. The idea behind the program was to encourage property owners to reinforce their buildings by waiving city plan review fees. Even with a break on city fees, critics say the program has not worked because the costs of retrofitting are still too steep. Most are not surprised by the voluntary program's failure. Prior to it being approved, local economist Ted Egan predicted it would only attract "one or two retrofits" a year beyond the normal averages. The San Francisco Apartment Association has been very supportive of the voluntary program, and leadership has even hinted that they might support a mandate. Executive director Janan New, however, said that would depend on the time limits and standards of retrofit imposed.
Apartment Communities Offer Major Solar Potential
Digested From "A Missed Opportunity? Apartment Complexes Offer Major Solar Potential"
Solar Industry Magazine (04/11) by Jessica Lillian
California's new, enhanced renewable portfolio standard (RPS) aims to significantly increase the demand for solar power and other forms of renewable energy in the Golden State. Now that this RPS has been signed into law, large-scale deployment of distributed rooftop PV is increasingly desirable option for meeting renewable energy needs. A new preliminary study from the Los Angeles Business Council (LABC) shows that apartment community rooftops -- an often-neglected market opportunity -- could serve as an ideal host for a potential 300 MW solar PV capacity in L.A. alone. The report states: "Given the economies of scale and the number of large, flat rooftops on multifamily buildings, this sector is likely to be the second most cost-effective (after commercial and industrial) for solar in the city. In short, it will be easier and less expensive to harness significant quantities of solar power from multifamily roofs than from single-family homes or smaller commercial rooftops." The reason for this is the large, flat roofs often found on apartment communities with five or more units tend to be suitable for installations of at least 50 kW. LABC says this threshold offers the most cost-effective deployment. Additional research showed that many of the city's neighborhoods with the highest density of suitable multifamily housing rooftops correspond with high-poverty areas that would stand to benefit most from the economic gains associated with solar development. For example, a 300 MW initiative would create more than 4,500 direct and indirect job-years, as well as provide lucrative opportunities for solar equipment and service providers up and down the supply chain. Additionally, PV deployment could greatly improve apartment residents' quality of life either by slashing their own individual utility costs or cutting the apartment owner's costs and allowing those savings to be channeled into site improvements or resident savings. However, LABC researchers found that success depends on the implementation of certain policies that either do not currently exist or that must be modified in order to prove successful.
Centrist Dem Group to Offer Housing Market Reform Proposal
Digested From "Centrist Dem Group to Offer Housing Market Reform Proposal"
The Hill (04/15/11) by Peter Schroeder
All 43 members of the New Democrat Coalition have signed off on a reform proposal that supports a largely private housing market with just a few federal backstops. The New Dems hope the plan will appeal to centrists on both sides of the political divide. The main recommendations involve winding down the role of Fannie Mae and Freddie Mac and reducing the U.S. government's involvement to two primary tasks: ensuring affordable access to a 30-year, fixed-rate mortgage and multifamily housing.
N.C. Apartment Owners Protest Fee
Digested From "Landlords Protest Fee"
The Herald (04/10/11) by Paul A. Specht
In Clayton, N.C., some local apartment owners are pushing back against the town's recent move to improve communication between police and apartment owners. The proposed rental-registration rules would require them to provide contact information to the town, maintain a list of authorized residents, and pay an annual fee. Apartment owners could reduce the fee by attending an annual housing-management program the town plans to offer. They could also lower the fee by keeping a manager on site at least 32 hours a week. Town officials assure that the fees will be kept low and that the money will go towards manage an in-house database of rental-property information. Others are not so sure. The Triangle Apartment Association (TAA) has contacted Clayton officials after it learned of the town's proposal. TAA officials have advised Clayton in modifying the registration program, but the group remains opposed to making apartment owners pay any fee. TAA representative Cheryl Houseman remarks, "We've been fortunate that Clayton has been able to work with us . . . and we support their efforts in obtaining contact information. But we positively do not advocate rental-registration programs." In fact, Houseman went on to say that the association considers such programs discriminatory.
Abstract News © Copyright 2011 INFORMATION, INC.
|