Headlines
Top Story
U.S. District Court Dismisses 'Accessibility' Suit Against Post Properties
Industry News
Apartments Are Holding Up Well in Tough Times
2008 Census Data: Housing Is Getting Even Less Affordable
NAA Education Institute Applauds Job Corps on Its Anniversary
Drop Expected for San Diego Apartment Values in 2010
Gables Moving HQ to Atlanta From Suburbs
Apartment Rents Lower Along the Mississippi Coast
UDR Receives Fannie Mae Credit
New Student Apartments Suggested for University of Iowa
Post Properties Announces Common Stock Offering
Wood Partners Looks to Buy Apartments
North Dakoa Apartment Market Faces Uncertain Future 
Working Less Hours Can Make You More Productive at Work
Top Analyst Downgrades Mid-American Apartment Communities
Owners Stuck in Condos' 'Shadow'
Legislative/Legal News
Ohio Apartment Owners Ducked Rental Registry
Higher Tax Assessments Could Hike Apartment Rents in Chicago
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
U.S. District Court Dismisses 'Accessibility' Suit Against Post Properties
Digested From "U.S. District Court Dismisses 'Accessibility' Suit Against Post Properties"
NAA News Release (09/29/2009)
In a ruling with potentially major positive ramifications for the apartment industry, on Sept. 28, 2009, Judge Richard Leon of the United States District Court granted Post Properties' Motion for Summary Judgment and dismissed a lawsuit filed in 2006 by the Equal Rights Center (ERC) that had alleged violations of the Fair Housing and Americans with Disabilities Acts. Post owns and manages 59 apartment communities with more than 21,000 apartment units in five states and the District of Columbia. ERC is a civil rights organization that has filed many lawsuits against multifamily housing companies alleging that apartment units did not comply with the Fair Housing Act and the Americans with Disabilities Act.
Web Link | Return to Headlines
Industry News
Apartments Are Holding Up Well in Tough Times
Digested From "Investor Report: Multifamily Apartments"
Realty Times (09/25/09) by Kenneth R. Harney
National Association of Realtors research economist George Ratiu notes that the U.S. apartment sector "continues to maintain a stronger performance compared with other sectors." During the 2009 second and third quarters, demand for apartments as measured by net absorption grew by more than 89,000 rental units nationwide. Apartment community owners have done a good job of keeping vacancies low, with such markets as Pittsburgh, northern New Jersey, San Diego, and Philadelphia leading the way. However, apartment vacancies in Tucson and Phoenix are on pace to top 11 percent and 12 percent, respectively.
Web Link | Return to Headlines
2008 Census Data: Housing Is Getting Even Less Affordable
Digested From "2008 Census Data: Housing Is Getting Even Less Affordable"
USA Today (09/22/09) P. B3; by Stephanie Armour; Barbara Hansen
Recent Census data shows that approximately 40 percent of homeowners spent at least 30 percent or more of their pre-tax income on mortgage payments, taxes, insurance, and utilities last year. Meanwhile, 50 percent of renters devoted 30 percent or more of their gross incomes to rental payments and utilities. The U.S. homeownership rate fell to 66.6 percent in 2008, while almost 900,000 Americans became renters. "Although housing affordability for newly purchased homes has improved, overall affordability for renters or owners is unchanged or worse because of the economy," says Harvard University Joint Center for Housing Studies research analyst Daniel McCue. "The fact that affordability for renters is getting worse shows the impact of the economic downturn." Cities in California and Florida make up the top 10 most expensive metro areas.
Web Link | Return to Headlines
NAA Education Institute Applauds Job Corps on Its Anniversary
Digested From "Citizen Journalism: Orators Overcome Obstacles"
Washington Times (09/28/09) by Bekah Grim
The National Job Corps Student Oratory Competition drew more than 200 political leaders and spectators to the U.S. Capitol Visitor Center in Washington, D.C., last week -- the highlight of a three-day celebration of Job Corps' 45th anniversary. Job Corps ranks as America's biggest work-force development program for high school dropouts, boasting more than 120 centers nationwide and in Puerto Rico. Administered by the Department of the Interior, it serves 16- to 24-year-olds who live in dormitories on Job Corps campuses while taking part in academic classes and job training. Since its inception, the Jobs Corps has helped millions of people learn skills and secure employment. Maureen Lambe, executive vice president of the National Apartment Association Education Institute, hires Washington, D.C.-area Job Corps students to work as maintenance technicians. She states, "This is a great partnership for businesses. These students consistently excel in the apartment industry because they come into the job with solid plumbing, air conditioning and electrical skills because of Job Corps."
Web Link | Return to Headlines
Drop Expected for San Diego Apartment Values in 2010
Digested From "Drop Expected for Apartment Values in 2010"
San Diego Union-Tribune (09/25/09) by Roger Showley
In the San Diego metro area, local investors and analysts are expecting apartment values to drop in the new year. "The good news is that we haven't heard anyone single out apartment investing [as a bad move]," reports Robert Vallera, a principal at Commercial Realty Advisers, at a recent briefing on the apartment market that drew 200 attendees. The session, co-sponsored by the San Diego County Apartment Association, also featured former San Diego City Councilman Fred Schnaubelt and University of San Diego economics professor Ryan Ratcliff. Virtually everyone in attendance forecast a price drop for 2010 due to the number of distressed apartment communities selling at bargain prices. Some, though, are expecting opportunity amid the downturn. The Pathfinders Partners real estate investment group, for instance, plans to invest between $500 million and $1 billion next year in distressed multifamily housing nationwide. On the downside, San Diego County Apartment Association Executive Director Robert Pinnegar laments that apartment construction is virtually nonexistent due to the fact that current rent levels are not high enough to support new communities. He concludes, "Unless you have the land entitled for sometime, it just doesn't pencil out. It's cost prohibitive."
Web Link | Return to Headlines
Gables Moving HQ to Atlanta From Suburbs
Digested From "Gables Moving HQ to Lenox"
GlobeSt.com (09/25/09)
Gables Residential this past week signed a 10-year office lease for an entire floor at the Lenox Building in Atlanta's Buckhead submarket. The lease totals approximately 21,000 square feet, but its value has yet to be disclosed. The apartment REIT will relocate from its current headquarters in the Atlanta suburb of Vinings. Dean Giordano, senior vice president with PM Realty Group, handled the building's leasing and marketing. He states that Gables opted to move to the 20-story Lenox, which is owned by one of ING Clarion's separate account pension fund clients, because of its easy access to public transportation and the Georgia 400. Gables CEO David Fitch adds that the Lenox Building's well-capitalized ownership made it a particularly attractive office option, stating, "As a company that prides itself on offering inviting places to live with extraordinary services, we look for similar attributes in a new headquarters." Gables currently owns a portfolio of 72 apartment communities containing 18,000 rental units. It manages more than 20,000 other apartments for third-party owners.
Web Link | Return to Headlines
Apartment Rents Lower Along the Mississippi Coast
Digested From "Apartment Rent Lower Along the Coast"
Biloxi Sun Herald (MS) (09/26/09) by Melissa M. Scallan
Along Mississippi's Gulf Coast, many apartments have been rebuilt since the destruction wrought by Hurricane Katrina. Rents have gone down over the last couple of years along the Coast thanks to state and federal governments offering tax incentives to developers to build more apartment communities, thus increasing the supply. The U.S. Census Bureau reports that median rents in Harrison County have gone down nearly $26 a month since 2007. In nearby Jackson County, meanwhile, rents have decreased almost $117 a month. Gulf Regional Planning Commission commissioned W.S. Loper & Associates to do an apartment study back in May, which looked both at the number of units available and the number of units under construction. Researchers determined that the apartment vacancy rate was 12.1 percent in the three coastal counties compared to a normal rate of between 4 percent and 6 percent. Harrison County was found to have the most apartments, with a final tally of 10,195 one- two- and three-bedroom units. Average monthly rents ranged from $654 to $945, a decrease of between 4 percent and 6 percent over a year ago. Sandy Pearce, manager of the Oak Villa apartments in Pass Christian, reasons, "People are losing jobs, and there is an overabundance of tax credit housing. We're competing against each other. People are either moving to apartments that are based on income or moving back home with family members to save money."
Web Link | Return to Headlines
UDR Receives Fannie Mae Credit
Digested From "UDR Receives Fannie Mae Credit"
Seeking Alpha (09/24/09)
UDR Inc. confirms that it recently obtained a $200 million secured credit facility originated by Red Mortgage Capital Inc., a Fannie Mae lender. The credit facility, which is collateralized by five geographically diverse apartment communities, is non-recourse in nature and permits collateral substitutions. Proceeds will go to repay debt, including certain yield maintenance fees due in 2010. The REIT owns, manages and develops middle-market apartment communities nationwide, with the bulk of its assets in the Western and Mid-Atlantic U.S. Last year, UDR took steps to upgrade the overall quality of its portfolio by selling apartment communities in smaller markets and replacing them with newer communities in more long-term geographic areas. As of the end of this year's second quarter, it had ownership stakes in more than 44,700 apartments, including 1,916 rental units in various stages of development.
Web Link | Return to Headlines
New Student Apartments Suggested for University of Iowa
Digested From "Regent Suggests UI Build New Dorm"
Iowa City Press-Citizen (09/25/09) by B.A. Morelli
Bob Downer, a member of the Iowa state Board of Regents, is urging the University of Iowa (UI) to erect its first new residence hall in more than 40 years. Downer says an aging housing system that year in and year out operates at full capacity, studies showing better grades for students who live on campus and a desire to create a special housing community for honors students are the main reasons behind his drive to add new student apartments to campus. UI officials would be required to develop a proposal, then present it to the board before any work could be done on such a project. At UI, nearly all freshmen and some sophomores live on the alcohol-free campus, but then most students move into off-campus rental apartments or houses in the Iowa City community. UI's goal for years has been to develop a housing system that encourages students to stay on campus longer. Greater Iowa City Apartment Association President David Kacena, though, said he does not see a need for additional housing at the current time. Such a development could have a negative impact on the city's housing market, he contends, especially apartments near campus. Still, he stopped short of saying the association would lobby against it. Kacena remarks, "Only in the past year have things started to fill up a little bit better. There's been a lot of new apartments built close to the downtown area that have been built in the past couple of years, so I think that would be fairly well handled."
Web Link | Return to Headlines
Post Properties Announces Common Stock Offering
Digested From "Post Properties Announces Common Stock Offering"
Business Wire (09/23/09)
Post Properties Inc. has commenced a public offering of 3 million common shares. Founded in the early 1970s, Post Properties today ranks as one of the country's biggest developers and operators of upscale apartment communities with operations in nine markets nationwide. The REIT owns 19,864 rental units in 55 communities, including more than 1,700 apartments in five communities held in unconsolidated entities and another 1,429 units in four communities currently in various stages of development.
Web Link | Return to Headlines
Wood Partners Looks to Buy Apartments
Digested From "Wood Partners Looks to Buy Apartments"
GlobeSt.com (09/24/09) by Carl Cronan
In response to growing market opportunities, Wood Partners LLC has decided to expand its business plan beyond multifamily housing development to acquire rental apartment communities nationwide. The company is in the process of assembling a special team that will focus on making new acquisitions, cultivating equity partnerships and seeking out strategic apartment communities that are either completed or partially developed. Wood Partners CEO Jerry Durkin comments, "We are in a capital-constrained market on the development front, both from an equity and debt perspective, and expect that to be the case through 2010. Instead of letting our top development talent sit on the sidelines, we're putting them at the forefront of acquiring new assets, which is where equity wants to be in this market." Wood Partners, which has already secured equity for four new developments set to start by the end of the year, now seeks debt capital for those communities. These four are located in Atlanta, Boston, Denver and Oakland, all of which are continue to show positive demand coupled with limited supply.
Web Link | Return to Headlines
North Dakoa Apartment Market Faces Uncertain Future
Digested From "Housing a Problem in Minot?"
KFYR-TV (North Dakota) (09/23/09)
It seems that as fast as apartments are being built in and around Minot, N.D., they are being rented even faster. Mark Austin of the Minot Housing Authority marvels, "There is a half percent vacancy rate." Consequently, affordability has become a problem. This, in turn, has made Austin's job of helping to find quality rental housing for low-income families and the elderly a lot harder. A partnership with HUD has enabled Austin's agency to help nearly 800 local families throughout Ward County. At the same time, HUD has announced plans to conduct a countywide survey to find out just how much rents have increased. Local housing officials hope this will eventually allow more money to flow into the local apartment market, giving families more choices on where to live. Austin laments that as more people move to Minot, rents will only continue to rise.
Web Link | Return to Headlines
Working Less Hours Can Make You More Productive at Work
Digested From "If You Need to Work Better, Maybe Try Working Less"
Wall Street Journal (09/22/09) by Sue Shellenberger
Last spring, the Society for Human Resource Management surveyed more than 600 U.S. workers and found that 70 percent of respondents work beyond scheduled time and on weekends. More than 50 percent of the employees cited "self-imposed pressure" as the reason. Now, new data suggests some have reached the point where they have found that the only way to increase their productivity is to not work so much. A four-year study, set for publication in the October issue of Harvard Business Review, confirms that getting away from the job can yield unexpected on-the-job benefits. When members of a dozen consulting teams at Boston Consulting Group were each required to take a block of "predictable time off" each work week, "we had to practically force some professionals" to get away, notes Leslie Perlow, the Harvard Business School leadership professor who spearheaded the study. The results, however, surprised both Harvard researchers and Boston Consulting executives. Working together to make sure each staffer took some time off forced teams to communicate better and forge closer professional relationships. Together, they had to do better at planning ahead and streamlining work. In some cases, this even resulted in improved client service. Other organizations are now putting easing up on work strains in other ways. At KPMG, for instance, managers utilize "wellness scorecards" to track whether staff members are putting in too much overtime or delaying or even neglecting vacation time. Other groups are hiring "so-called "workflow coordinators" to review employees' hours in an effort to avert overload.
Web Link | Return to Headlines
Top Analyst Downgrades Mid-American Apartment Communities
Digested From "Ahead of the Bell: Mid-America Apt Comm Downgraded"
Associated Press (09/21/09)
R.W. Baird analyst Paula Poskon this past week lowered her rating on Mid-America Apartment Communities Inc., reasoning that the stock may not be as appealing to investors looking for growth in the weeks to come. Mid-America had previously been an attractive pick in turbulent times on account of its conservative portfolio, relatively light debt load and safe dividend. The REIT may post higher-than-anticipated results in the third quarter, and the stock could eventually top $50 a share. "But ultimately," Pokson writes, "a year from now we expect the market to be squarely focused on growth names in advance of the expected late 2011-into-2012 recovery." Consequently, she has downgraded Mid-America from "outperform" to "neutral." While apartment REIT shares will likely see a substantial amount of volatility over the next 12 months, Pokson says she expects the stocks she covers to wind up at the same level or higher than they are now by September 2010 on economic recovery prospects.
Web Link | Return to Headlines
Owners Stuck in Condos' 'Shadow'
Digested From "Landlords Stuck in Condos' 'Shadow'"
Chicago Tribune (08/30/09) by Mary Umberger
In and around Chicago, the glut of homes for sale in the last year created a "shadow market" of rental housing, especially with regards to condominiums. Some owners were so desperate they offered hard-to-resist deals to residents who would cover the mortgage until a sale. Full-time apartment owners now want those rentals to go away. Judith Roettig, executive vice president of the Chicagoland Apartment Association, comments, "Our challenge remains the competition being offered by condos for rent. We were kind of happy to see that things are beginning to sell." Although a few submarkets in the Chicago metro area report slight improvement in the rental picture, anywhere from 8 percent to 10 percent of units vacant. According to Roettig, "normal" is 95 percent to 96 percent occupied. What matters the most to large apartment community owners that dominate her association's membership is "financial occupancy," which basically means being able to draw the full rent without concessions and sweeteners to tenants. Because unemployment remains high, Roettig expects most big apartment owners will be offering concessions for some time to come.
Web Link | Return to Headlines
Legislative/Legal News
Ohio Apartment Owners Ducked Rental Registry
Digested From "Landlords Ducked Rental Registry"
Columbus Dispatch (OH) (09/28/09) by Barbara Carmen
Owners of almost 50 percent of the rental apartments in Franklin County, Ohio, have ignored a new registration law that helps neighbors determine which communities have been neglected. County officials have consequently collected more than $1 million in fines from owners who failed to comply in tax year 2008, the first year of registration. Officials add that is very likely that others are still unaware or are resisting. County Auditor Clarence Mingo remarks, "The lack of rental-property contact information has long been an aggravation to authorities, neighbors and renters. This gives neighbors of rental properties whose [owners] could not [previously] be found some way of contacting the individual responsible." The registration law made its way through the General Assembly with the support of the state's apartment owners. The Ohio Apartment Association, in particular, wanted an accurate, centralized system. Before, there was a hodgepodge of city reporting and fee requirements, recalls Steve Gladman, former executive director of the Columbus Apartment Association.
Web Link | Return to Headlines
Higher Tax Assessments Could Hike Apartment Rents in Chicago
Digested From "Sock It to 'Em: Tax Assessment Increases Could Mean Rent Hikes"
Chicago Sun-Times (09/24/09) by David Roeder
Chicago apartment owners complain they are being hit with tax assessment increases that will leave them with no choice but to increase rents. Several owners have cited specific apartment communities on the city's North Side where assessments have as much as tripled from a year earlier. A recent Chicagoland Apartment Association survey of owners reported assessments increasing anywhere from 18 percent to 182 percent. TLC Management Co. CEO Stuart Handler reports that the decisions by Cook County Assessor James Houlihan make no sense in a time when property values are on the decline. He further laments, "I think the underlying reason here is that the county is basically broke and it's trying to fix itself on the backs of the [owners]." Houlihan estimates that in the apartment-rich Lake View area, owners could be forced to hike rents by $150 a month or more to make up for the higher expense. Assessments help decide property tax bills, which traditionally have accounted for between 15 percent and 20 percent of what apartment residents pay. Houlihan's office insists that the higher assessments are warranted because the rental apartment market in gentrified city neighborhoods has remained strong despite the recession. City officials add that owners previously saw assessment reductions in recent years after successfully complaining that their customers were moving out to buy condominiums.
Web Link | Return to Headlines
Attract Prospects & Retain Residents with Yardi Portal™Unit Availability * Online Applications * Online Payments * Lease Renewals
Abstract News © Copyright 2009 INFORMATION, INC.
|