Headlines
Top Story
Forbes Sounds Off on Apartments and Student Housing w/Peter Slatin 
Industry News
Post Properties Announces Executive Departure
Triangle Apartment Owners Deal With Vacancies
Manhattan Rents Fall as Much as 9 Percent Amid Employment Cuts
Fort Collins-Loveland Area Has Lowest Vacancy Rates in Colorado
Green Apartment Community Opens In Cincinnati Area
Mall Developer Zamias Goes Residential
Apartment Construction Slows Down in New Mexico Market
Legislative/Legal News
Bedbug Bill Affects New Jersey Apartments
San Fran Debates Housing Discrimination Against Pet Owners
11 Apartment Communities in Disabilities Settlement
Orlando Apartment Managers Sign Up For Crime Fighting Program
Gay Apartment Residents to Get Some Discrimination Protection
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
Forbes Sounds Off on Apartments and Student Housing w/Peter Slatin
Digested From "Buy Up Student Housing"
Forbes.com (11/12/09) by Peter Slatin
Peter Slatin, editorial director and associate publisher of Real Capital Analytics, discusses the real estate outlook with Steve Forbes in a special Forbes.com video. He describes apartments as "sort of steadfast," and says he particularly likes AvalonBay Communities, "which has great properties on the East and West coast, high barrier to entry markets, high quality properties, and an experienced management." Slatin says while AvalonBay may not have a lot of growth in the near term, "long-term they do have growth. They have a steady and dependable yield." He also indicates this admiration for Essex Properties Trust, which has more apartment communities on the West Coast. Slatin cites the niche market of student housing for its future growth prospects, singling out American Campus Communities as having "grown from about 300 million a few years ago in market cap, to a couple billion today. . . . They really dominate that space -- excellent management, good balance sheets. Going forward, they have good growth in front of them."
Web Link | Return to Headlines
Industry News
Post Properties Announces Executive Departure
Digested From "Post Properties Announces Executive Departure"
Business Wire (11/10/09)
As part of an overall restructuring aimed at streamlining Post Properties Inc.'s operations and reducing costs, Thomas L. Wilkes has agreed to leave the company at the end of the year. Wilkes currently serves as president of Post Apartment Management and executive vice president of the parent company. His responsibilities will be assumed by S. Jamie Teabo, senior vice president of property management, and Charles A. Konas, executive vice president of construction and development. Post Properties CEO David Stockert comments, "With his background in multifamily real estate and commitment to the business, Tom Wilkes has made substantial contributions to Post over many years. We appreciate his accomplishments on behalf of the Company and wish him every continued success." Post Properties is an Atlanta-based REIT that owns more than 19,800 apartments in 55 communities, including 1,429 rental units in four communities now under construction and/or in lease-up.
Web Link | Return to Headlines
Triangle Apartment Owners Deal With Vacancies
Digested From "Empty Apartment Blues"
Raleigh News & Observer (NC) (11/12/09) by David Bracken
From free rent to waived deposits to flat-screen TVs, apartment owners throughout North Carolina's Triangle region are offering an increasing number of concessions to attract residents. Such deals are the clearest proof yet that the region's apartment sector, while healthier than most other parts of the nation, is still feeling the effects of the recession. The Triangle Apartment Association and Karnes Research report that the region's apartment vacancy rate was 9.5 percent as of the end of this year's third quarter, an increase from 8.7 percent a year ago. Average apartment rents, meanwhile, witnessed their first year-over-year decline in five years. Still, market conditions are nowhere near as advantageous for apartment residents as they were seven years ago, when vacancy rates hovered in the 11 percent range and some owners were offering up to four months of free rent. The decline in rents comes as apartments are losing value amid the ongoing credit crisis. The average Triangle apartment cap rate through Sept. 30 was 7.6 percent, an increase from 6.1 percent a year earlier -- the highest it has been since 2002. According to Real Capital Analytics, rising cap rates are expected to cause more distressed apartment communities to come on the market. Most investors have expressed confidence that the Triangle apartment sector will bounce back quicker than the rest of the U.S. MPF Research reports that Raleigh and Washington are the only two markets in the nation where the total number of apartments occupied has continued to increase. Greg Willet, MPF's vice president for research and analysis, notes, "You're still absorbing units, just not as many as are being built."
Web Link | Return to Headlines
Manhattan Rents Fall as Much as 9 Percent Amid Employment Cuts
Digested From "Manhattan Rents Fall as Much as 9 Percent Amid Employment Cuts"
Bloomberg (11/11/09) by Dan Levy
A new Citi-Habitats Inc. report shows that Manhattan apartment rents fell as much as 9 percent in October from a year ago as unemployment cut demand and owners reduced rates. Meanwhile, the vacancy rate rose 0.15 percentage point to 1.86 percent -- the highest since November 2008. Citi-Habits President Gary Malin remarks, "As soon as the economy shifted and people got laid off and got no bonuses, landlords had no choice but to reduce asking prices. We expect rents to decrease in the next few months and vacancy rates to creep upward." New York City's unemployment rate topped 10.3 percent at the end of this year's third quarter, according to data from the New York State Department of Labor. Concessions such as one month's free rent or owners paying property brokers to help boost occupancy have helped lure residents, Malin added. Citi-Habitats remains on pace to break 2008's record of brokering more than 10,500 apartment leases. Researchers found that average rents declined for all apartment sizes. Indeed, Manhattan studio rents fell 9 percent from October 2008 to an average monthly rate of $1,901. One- bedroom apartment rents slipped 7 percent, while the cost of renting a two-bedroom unit fell 8 percent to $3,605. Geographically, SoHo/TriBeCa had the lowest vacancy among Manhattan neighborhoods at 0.95 percent. The Upper East Side was highest at 2.41 percent.
Web Link | Return to Headlines
Fort Collins-Loveland Area Has Lowest Vacancy Rates in Colorado
Digested From "Area Has Lowest Vacancy Rates"
Coloradoan (11/13/09) by David A. Young
According to a newly released Department of Local Affairs' Division of Housing study, Fort Collins and Loveland had the lowest apartment vacancy rates in Colorado during this year's third quarter. Apartment vacancies were found to be on the rise statewide as unemployment continued to rise. Fort Collins' apartment vacancy rate was 5.9 percent in the July-through-September period versus 4.2 percent a year earlier. Loveland's vacancy rate, meanwhile, was at 4.3 percent compared to 3.5 percent in the year-ago period. All other Colorado metro areas measured in the study posted vacancy rates above the 7 percent mark. In general, researchers note, a vacancy rate of 5 percent is considered to be the "equilibrium rate." Gordon Von Stroh, author of the report and professor of business at the University of Denver, remarks, "Although unemployment in Colorado fell in recent months, unemployment is still up when compared to last year." He added that Fort Collins' apartment vacancy rate is a little more than he projected. However, it is still at a very reasonable level. Von Stroh further noted that Larimer County's unemployment rate fell to a seasonally adjusted 5.9 percent in September driven entirely by people giving up job searches instead of finding new jobs.
Web Link | Return to Headlines
Green Apartment Community Opens In Cincinnati Area
Digested From "Green Apartment Complex Opens In East Walnut Hills"
WCPO-TV.com (OH) (11/12/09) by P.J. O'Keefe
One of Cincinnati's first green Leadership in Energy and Environmental Design-certified apartment communities opened this past week in the East Walnut Hills area of the city. The new apartment community offers one- and two-bedroom rental units with reserved parking spaces for hybrid cars and bicycles, among other amenities. The developers hope that its proximity to the University of Cincinnati, Xavier University and a plethora of retail stores will encourage its residents to do more walking than driving.
Web Link | Return to Headlines
Mall Developer Zamias Goes Residential
Digested From "Mall Developer Zamias Goes Residential"
Pittsburgh Post-Gazette (11/10/09) by Sam Spatter
Pennsylvania-based mall developer The Zamias Co. has entered the apartment sector for the first time with the acquisition of Samuel Land Co., co-owner of five apartment communities in the Pittsburgh metro area. Joe Anthony, executive vice president at Zamais, confirms, "We hope to build on our apartment portfolio and are looking to purchase other apartment buildings in Pittsburgh and Southwest Pennsylvania." Zamias has yet to disclose the cost of Samuel Land and its real estate arm, SLC Realty. However, it did confirm that the total number of apartments involved in the transaction is 520. Zamias currently owns 53 shopping centers in 13 states, including nine properties in and around Pittsburgh. In total, the company's retail portfolio boasts more than 12 million square feet of space. Zamais also owns an undisclosed number of hotels and industrial facilities.
Web Link | Return to Headlines
Apartment Construction Slows Down in New Mexico Market
Digested From "Farmington Apartment Construction Sees Slowdown"
Farmington Daily Times (NM) (11/16/09) by Steve Lynn
The economic downturn continues to delay apartment construction in and around Farmington, N.M. A lack of financing options is the many reason why so many large apartment communities have been postponed locally. Even worse, many of these stalled projects have been aiming to deliver affordable housing to a market that sorely needs it. For example, Animas Valley Land & Water Co. has been looking to build a 310-unit apartment community, but has been unable to start construction for nearly a year. That is because Animas Valley Land & Water has yet to find a national bank to finance the project. Evert Oldham, the company's general manager, reasons, "Our commitment is affordable housing, and we can't pay a usurious charge for the financing and end up with affordable housing. We sort of have to have market-rate financing and that's nonexistent right now."
Web Link | Return to Headlines
Legislative/Legal News
Bedbug Bill Affects New Jersey Apartments
Digested From "Bedbug Bill Called Model Legislation"
NorthJersey.com (11/15/09) by Donna Rolando
Despite the fact that it still needs state Senate approval, New Jersey's bedbug legislation is garnering national attention as a potential model bill for other states. Under the legislation, apartment owners would be required to exterminate the bedbug pests. In addition, residents would be required to cooperate by opening their doors to inspections and cleaning their belongings. More specifically, the bill would require annual inspections of multifamily housing for bedbug infestations and impose fines on owners who fail to act immediately. By bringing together owners and residents, the Garden State has indeed written potentially model legislation, reports Renee Corea of the New York Vs Bed Bugs advocacy group. She states, "Everyone is watching the New Jersey bill." Many apartment owners have argued that they do not want to pay for costly exterminations, while some residents have expressed fear over a loss of privacy during inspections. The road ahead for the legislation is not expected to be a smooth one, given that both owners and residents are still asking for concessions. Conor Fennessy, vice president of government affairs for the New Jersey Apartment Association, states, "We supported the legislation coming out of the Assembly. We hope the Senate will look at unresolved issues."
Web Link | Return to Headlines
San Fran Debates Housing Discrimination Against Pet Owners
Digested From "Pet Proposal Put on Hold"
San Francisco Examiner (11/13/09) by Katie Worth; Will Reisman
San Francisco's Commission for Animal Control and Welfare this past week postponed a resolution that would have suggested the city prohibit housing discrimination against responsible pet owners. The matter will be taken up again after the first of the year. After listening to testimony from resident groups in support of the resolution and various apartment owners concerned about its implication on their communities, Commissioner Philip Gerrie officially withdrew the resolution on Nov. 12. The plan now is to come back with a resolution that lays out more specifics about what the rights of apartment owners and residents would be. San Francisco Apartment Association President Janan New insists that a mandatory pet policy would be a particularly burdensome and expensive liability for owners. Additionally, it would adversely affect other residents with allergies or fears of animals.
Web Link | Return to Headlines
11 Apartment Communities in Disabilities Settlement
Digested From "11 Apartment Complexes in Disabilities Settlement"
NewsChannel 10 (Amarillo, Tex.) (11/12/09)
Four apartment communities in Memphis and two in Shreveport must pay to make themselves accessible to disabled people in a settlement of a federal anti-discrimination lawsuit. A recent Justice Department media release says these half-dozen properties are among 11 total apartment communities spread throughout the South named in the complaint that was originally filed in Tennessee. The other five are in such markets as Gulf Shores, Ala.; Tyler, Texas; and Lafayette, La. Under terms of the settlement, the 11 defendants will pay all costs related to making the communities accessible to those with disabilities.
Web Link | Return to Headlines
Orlando Apartment Managers Sign Up For Crime Fighting Program
Digested From "Apartment Managers Sign Up For Crime Fighting Program"
WFTV.com (Florida) (11/11/09)
In Orlando, a few hundred apartment community managers this past week kicked off a citywide crime fighting program. Key to the initiative is a special clause in new leases that says residents who bring crime to their apartment communities can be immediately evicted. Dubbed the "Crime-Free Multi-Housing Program," it basically holds residents responsible for crimes they or their guests commit. Residents indeed sign a lease that says they will be responsible for anyone they allow through the gate. Captain Mike Bowan of the Jacksonville Police Department remarks, "So you're now held responsible for your guests. No longer can you say that guy who's selling drugs, he's just visiting me, but I don't have anything to do with it." Fair or not, the program is legal and has proven to be very successful in the Jacksonville metro area -- so successful that Orlando is using it as its citywide model. Bowan comments, "We've been able to cut crime by 66 percent in some of these apartment complexes." Some apartment communities are even using the crime-free leasing concept as a selling point. To this end, many have found it attracts substantially more residents than it scares away.
Web Link | Return to Headlines
Gay Apartment Residents to Get Some Discrimination Protection
Digested From "Gay Renters to Get Some Discrimination Protection"
New York Times (10/30/09)
Late last month, the U.S. Department of Housing and Urban Development (HUD) said that it is expediting a national study to gauge the extent of sexual discrimination-related housing practices. It also is drafting regulations to ensure individuals can obtain government or public housing regardless of their identities. The regulations, if passed, would give gay and transgender renters unprecedented legal power. The regulations, though, would extend only to HUD housing.
Web Link | Return to Headlines
Abstract News © Copyright 2009 INFORMATION, INC.
|