Headlines
Top Story
Riverstone Wins Management of 15,000-Apartment BlackRock Portfolio
Industry News
In String of Bad News, Omens of a Long Recession
Post Properties Cuts Quarterly Dividend, Announces CIO Departure
Carro Named Northern California VP for BRE Properties
Essex Property Trust Declares Quarterly Distributions
Apartments Part of Overall Woes in Seattle
Micro-Unit Apartments Rise in Popularity
In Florida, the Pros and Cons of Affordably Priced Apartments
Colonial Properties Trust Announces Expanded Notes Repurchase Program
Apartment Community Proposed for Veterans in Milwaukee
Legislative/Legal News
Apartment Residents in Arizona City Oppose Smoking Ban
Schumer Seeks Protection for Apartments Facing Default
Unregulated Rental Units Uninspected in California
Colorado Apartment Association Opposed to Detectors
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
Riverstone Wins Management of 15,000-Apartment BlackRock Portfolio
Digested From "Riverstone Wins Management of 15,000-Unit BlackRock Portfolio"
Commercial Property News (12/03/08) by Eric Perrotta
Riverstone Residential was recently awarded the management of more than 15,000 apartments in the portfolio of BlackRock Realty Advisors Inc., BlackRock Inc.'s real estate equity arm. Under terms of the deal, Riverstone will assume management of the various units--spread across 62 communities--from former manager Metric Property Management Inc. Metric staffers will be offered positions with Riverstone to facilitate the smoothest transition possible for residents. Ron Zuzack, managing director and head of U.S. real estate equity for BlackRock Realty, states, "Our primary objectives in the selection of Riverstone were to provide stability to our portfolio throughout the transition and take advantage of Riverstone's value-added strategies and economies of scale to continue to provide favorable returns to our client." In the last two and a half years, Riverstone has increased its number of managed apartments by a whopping 275 percent.
Web Link | Return to Headlines
Industry News
IRES offers property management software solutions. Its world-class offerings provide clients flexibility, transparency and a competitive advantage.
In String of Bad News, Omens of a Long Recession
Digested From "In String of Bad News, Omens of a Long Recession"
New York Times (12/08/08) P. B1; by Michael M. Grynbaum
The recession, which officially began in December 2007, is on track to be the longest and most severe economic slump since the end of World War II. Recent reports on jobs, sales, and public confidence signaled that even after 11 months--more than the entire length of the last two downturns--this recession has only now entered its worst phase. Although President-elect Barack Obama has promised a stimulus plan "large enough to get the economy moving," massive job losses continue to affect a broad swath of income levels, and historical factors point to millions more Americans losing their jobs before businesses start to expand again. Jared Bernstein, who will be the chief economic adviser to Vice President-elect Joseph Biden, states, "We'll be lucky if the unemployment rate is below double digits by the end of next year. Even if the economy improves, the growth won't be enough to rehire laid-off workers, much less absorb those coming into the labor force."
Web Link | Return to Headlines
Post Properties Cuts Quarterly Dividend, Announces CIO Departure
Digested From "Post Properties Announces Reduced Quarterly Dividend, Departure of Chief Investment Officer and New Stock Repurchase Program"
MarketWatch (12/02/08)
Post Properties Inc.'s board of directors has reduced its dividend to $0.20 per share for the fourth quarter of 2008. Board members currently anticipate maintaining this rate throughout 2009 for an annualized dividend level of $0.80 per share. However, the amount of dividends to be paid by the apartment REIT will continue to be determined on a quarterly basis by the board. Post Properties' dividend is payable Jan. 15 to all common stock shareholders of record as of Jan. 2. Post Properties President and CEO David P. Stockert states, "We believe that reducing the dividend level on the common stock is in the best interests of our shareholders. Along with continuing to reduce costs, adjusting the dividend is an important part of our strategy to maintain the strength of our balance sheet and to provide financial flexibility through uncertain economic times." Separately, Post confirms that CIO Thomas D. Senkbeil has decided to leave the company, effective at the end of 2008. His duties will be assumed by other members of Post Properties' Investment Group. Finally, Post's board of directors has adopted a new stock repurchase program under which the company may repurchase up to $200 million of common shares or preferred stock at market prices from time to time until the end of 2010.
Web Link | Return to Headlines
Carro Named Northern California VP for BRE Properties
Digested From "Carro Named Northern California VP for BRE Properties"
Sacramento Business Journal (CA) (12/01/08) by Michael Shaw
Joan Carro has been named BRE Properties Inc.'s vice president of property operations for its Northern division. Carro is now in charge of the operations of 28 apartment communities totaling more than 8,400 rental units in Seattle, Sacramento and the San Francisco Bay Area. Carro, who was previously an executive with Riverstone Residential Group, served as the 2007 board president of the National Apartment Association's Oregon affiliate. BRE Properties is a REIT that owns and manages 75 apartment communities containing 22,166 rental units in three states--California, Arizona and Washington.
Web Link | Return to Headlines
Essex Property Trust Declares Quarterly Distributions
Digested From "Essex Property Trust Declares Quarterly Distributions"
Market Wire (12/05/08)
Essex Property Trust Inc.'s board of directors has declared a regular quarterly cash dividend of $1.02 per common share, which will be payable Jan. 15 to shareholders of record as of Jan. 2. Additionally, the board declared quarterly distributions of $0.48828 and $0.30469 per share on its 7.8125 percent Series F Cumulative Redeemable Preferred shares and 4.875 percent Series G Cumulative Convertible Preferred shares, respectively. Essex Property Trust is a California-based REIT that specializes in acquiring, developing, redeveloping and operating apartment communities in supply-constrained markets nationwide. It currently has ownership stakes in 133 multifamily housing communities containing 26,790 apartments.
Web Link | Return to Headlines
Apartments Part of Overall Woes in Seattle
Digested From "Real Estate a Sore Point in Seattle Area Economy"
Seattle Post-Intelligencer (12/05/08) by Dan Richman
A panel of experts recently concluded that Seattle's real estate market is mired in a decline, with no prospects for a quick recovery. David Legeay, a KeyBank senior vice president, noted that construction has been the single biggest contributor to employment growth in Seattle. To that end, he remarked, "We think there is some risk, given the high reliance on construction, administrative and information-type services." Multifamily housing is certainly a factor to take into account. Matthew Gardner, a principal with Gardner/Johnson LLC, forecasts "a tsunami of new apartments coming online in 2009 in Seattle"--about 6,600 units to be exact, with approximately 8,000 more in 2010. He commented, "Do we need it all? Ultimately, yes. Do we need it all in 2009? Oh, no, definitely not. It's going to be rough here next year" for apartment owners, though residents will have a wide choice. Taking a look at the metro area's condominiums, would-be buyers continue to hold off because they think the units are too expensive or they are unable to obtain financing. Housing demand stems from job growth, Gardner added, and job growth will basically be flat in 2009. Thomas Parsons, senior vice president of development firm Opus Northwest, concluded that the most hopeful outcome of the downturn is that Seattle's property market will return to fundamentals and only those building projects that make sense will get the green light to proceed.
Web Link | Return to Headlines
Micro-Unit Apartments Rise in Popularity
Digested From "Less Is More in New Housing"
USA Today (12/05/08) P. 3A; by Haya El Nasser
As the economy declines, the popularity of small apartments and condominiums increases. For example, three apartments as tiny as 264 square feet are currently the biggest draw in Legacy Village in Plano, Texas, and are never vacant. They rent for $418 per month, around half the cost of the smallest one-bedroom units. Many micro-units provide a variety of perks, including free wireless service and access to fitness facilities. Golub & Co. President and CEO Michael Newman stresses the micro-unit trend is permanent. Besides the struggling economy, micro-units are the result of more environmentally aware tenants, as smaller units consume less space, water and energy. At the same time, many apartment residents are just beginning their professional working lives and want to live in a more social urban atmosphere. People who grew up in modern suburban houses with stainless steel appliances, granite counters and whirlpool baths expect some luxury, notes RTKL Associates Vice President Thomas Brink. In addition, designers are devising ways to provide a miniscule space with an airy environment and still comply with codes and rules. Design touches include big windows and limited dividing walls.
Web Link | Return to Headlines
In Florida, the Pros and Cons of Affordably Priced Apartments
Digested From "Affordably Priced Apartments Cater to Dreary Housing Market, but Worry Neighbors"
South Florida Sun-Sentinel (FL) (12/02/08) by Andy Reid
Developers intend to construct reduced-cost apartments outside of Boynton Beach, Fla., that are targeted at young families, in an effort to provide more housing choices in the slumping real-estate market. Although neighbors concerned about "affordable" rental units harming already declining real-estate values have voiced opinions, representatives of the Woodwind apartments believe they are a smart addition to the State Road 7 area. Palm Beach County's affordable-housing rules are directed at creating more housing choices for teachers, young professionals and others close to the median income level. In the past few years, many such people have discovered themselves priced out of the region. The proposal calls for 202 apartments in seven three-level buildings north of Lantana Road. A minimum of 70 apartments would be set aside for the county's "work force housing" program. With homes and condominiums for sale and sitting on the market, some locals lament that there are already numerous affordably priced homes to rent.
Web Link | Return to Headlines
Colonial Properties Trust Announces Expanded Notes Repurchase Program
Digested From "Colonial Properties Trust Announces Expanded Notes Repurchase Program"
Business Wire (12/04/08)
Colonial Properties Trust's board of trustees last week authorized the repurchase of an additional $300 million of outstanding unsecured senior notes of Colonial Realty Limited Partnership under a previously announced notes repurchase program. This program runs through the end of 2009. This brings to $500 million the total repurchase authorization under the program, of which approximately $188 million of outstanding senior notes have been repurchased to date. Under terms of the repurchase program, senior notes may be repurchased in open market transactions or privately negotiated transactions from time to time, subject to applicable legal requirements and other factors. The Alabama-based REIT expects to fund potential repurchases from borrowings under existing credit facilities, proceeds from apartment community sales and/or other available funds.
Web Link | Return to Headlines
Apartment Community Proposed for Veterans in Milwaukee
Digested From "Group Proposes 80-Unit Building for Veterans"
Milwaukee Journal Sentinel (WI) (12/03/08) P. D1; by Tom Daykin
The Center for Veterans Issues, a nonprofit organization that helps military veterans, has proposed an 80-unit apartment community to be built in Milwaukee for low-income veterans. The building would have both one-bedroom and studio units on its upper floors, and include support services on the first floor for building residents and veterans who live in the area. Center staff members also would help the building's residents obtain driver's licenses and secure employment. Many veterans find it difficult to afford market-rate apartments. The community proposed by the center would use federal tax credits given to developers who agree to lease apartments at below-market rents to people with lower incomes. The project would compete with other proposals for tax credits, which are allocated by the Wisconsin Housing and Economic Development Authority.
Web Link | Return to Headlines
Legislative/Legal News
Apartment Residents in Arizona City Oppose Smoking Ban
Digested From "Tenants Fuming Over Smoking Ban"
Mohave Daily News (12/04/08) by Neil Young
Some residents of Mountain Crest Apartments in Bullhead City, Ariz., are up in arms over an addendum to their lease agreements that will prohibit them from smoking in their apartments after Jan. 1. The apartment community, which is subsidized by the U.S. Department of Agriculture Rural Development, caters to lower-income residents. In a notice dated Nov. 1, Landmark Management Group--which manages the community--decreed that "no smoking will be allowed in the office, in common areas, including the community room and all hallways [and] inside any apartment in the building." Project supervisor Denise Fraley added, "If you are currently smoking inside of your apartment, you need to be aware that if you continue to do so this is a violation of your lease agreement and you could be at risk for possible termination or non-renewal." Several residents have protested in writing to the Mohave Daily News, but have done so anonymously for fear of eviction. One resident in her 80s wrote: "I have fear for going outside for fear I'll take pneumonia." She added that she has tried "all last month" to quit smoking, but has failed. The reasoning for the ban was outlined by Landmark President Julie Nylen. She asserts that it costs money to clean up a unit after a smoker moves out. Carpet replacement and multiple coats of paint are often needed. In addition, the company says its receives regular complaints from non-smoking residents who live next door to smokers that "they can smell that smoke through the walls."
Web Link | Return to Headlines
Schumer Seeks Protection for Apartments Facing Default
Digested From "Schumer Seeks Protection for Apartment Building Facing Default"
New York Times (12/02/08) by Charles V. Bagli
Up to 60,000 apartments for poor and working-class residents in New York City are at risk of falling into disrepair and bankruptcy due to "shoddy lending practices" by leading financial groups in recent years, according to a recent report published by Sen. Charles Schumer (D-N.Y.) and activists for low-cost housing. Schumer stated that real-estate investors and speculators, who borrowed hundreds of millions of dollars to purchase apartment communities like Stuyvesant Town based on unrealistic forecasts of increasing rents, are now having trouble paying "sky-high mortgage costs." As such, Schumer said, the new owners are feeling pressured to get rid of residents of rent-regulated housing in favor of those paying market rents, to reduce services or to default on the loans. Schumer has asked the Securities and Exchange Commission (SEC) to look into whether the loans were based on fake or misleading economic assumptions before being sold to investors as securities. In addition, he asked state and federal regulators to offer lending regulations meant to guarantee that some apartment commmunities stay affordable for low- and middle-income residents. The figure of 60,000 apartments came from a study of property records, filings at the SEC and financial documents connected to mortgage-backed securities by housing activists and aides to Schumer. Housing activists and Schumer want the federal government to help overhaul the unstable loans and shield communities that are encountering default.
Web Link | Return to Headlines
Unregulated Rental Units Uninspected in California
Digested From "Unregulated Rental Units Uninspected"
Ventura County Star (CA) (12/06/08) by Kevin Clerici
In Ventura, Calif., an estimated 6,000 unregulated rental units are at the core of a controversial effort to mandate city inspections. While the city taxes owners of four or more rentals and annually inspects rentals of three or more connected units on a single property, single-family houses and duplexes are exempt from the licensing and inspections. The unregulated rentals make up less than 40 percent of the city's rental housing stock. However, they accounted for almost 90 percent of documented substandard housing conditions investigated by code enforcement officers in the previous fiscal year, reports Andrew Stuffler, Ventura's chief building official. Local inspectors respond on a complaint basis to housing problems, and the workload has overextended Ventura's three-member inspection staff. Now, code officers, led by fire Chief Mike Lavery, are pushing for greater authority to expand inspections in an effort to promote safe housing. Some apartment owners are adamantly opposed to any change, and the Apartment Association of Greater Los Angeles has rallied to the cause. Association members are especially concerned that mandatory inspections could pave the way for a wave of "nit-picky" violations and new fees that would unfairly tax mom-and-pop owners and responsible rental-housing providers. Such fees would likely be passed on to residents in many instances.
Web Link | Return to Headlines
Colorado Apartment Association Opposed to Detectors
Digested From "Detectors Key to Saving Lives"
Denver Post (12/02/08) by Carlos Illescas
An estimated 500 people die each year from carbon-monoxide (CO) poisoning and approximately 15,000 others are sent to hospitals for treatment. Fairly affordable detectors, though, can alert residents and building occupants of increased levels of the toxic gas. In Colorado earlier this spring, a bill that would have required carbon-monoxide (CO) detectors in new multifamily housing construction and any home sold statewide failed to make it out of the state Senate. The Colorado Apartment Association was among the groups that opposed the bill on the grounds that installing such detectors would present a financial hardship to many of its members. Prices for such alarms range from around $10 for a basic model to $100 for a digital readout alarm with a backup battery to $220 for one that flashes a strobe light when CO levels are high.
Web Link | Return to Headlines
NAA Announcements
Abstract News © Copyright 2008 INFORMATION, INC.
|