Headlines
Top Story
GOP Set to Begin Chipping Away at Mortgage Giants
Industry News
UDR Targets Major U.S. Markets for Growth
Mid-America Apartment Communities Renamed MAA
Las Vegas Apt Vacancies Slip in Feb From Prior Month
Harbor Group Affiliate Buys Va. Apartments for $165.9 Million
Wealthy Invest in Commercial Property, Especially Apts
Chicago Awards Included at Least One Apartment Winner
Apartment Owner PJ Finance Files for Bankruptcy
'Sunburnt' Cities to Eventually See Housing Rebound
Legislative/Legal News
Fannie, Freddie Executive Loss a Concern: Regulator
West Des Moines Re-Evaluates Low-Income Housing Policy
HUD Secretary: Fannie, Freddie Housing Goals Didn't Work
Cary, N.C., Police Focus on Apartments
NYC Lends a Helping Green Hand to Apartment Owners
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
GOP Set to Begin Chipping Away at Mortgage Giants
Digested From "GOP Set to Begin Chipping Away at Mortgage Giants"
Wall Street Journal (03/14/11) by Nick Timiraos
GOP legislators are preparing to take the wraps off legislative proposals that would gradually reduce the role of Fannie Mae and Freddie Mac -- a reversal from the faster wind-down they previously backed. While still committed to phasing out Fannie Mae and Freddie Mac and transferring their responsibilities to the private sector, the Republicans stand a better chance of success if they advance individual bills. Doing so could offer more opportunities for cooperation with the Obama administration than if they move a single bill outlining a more immediate wind-down of the firms.
Industry News
Yardi Utility Billing™ improves cash flow. Click here to learn more.
UDR Targets Major U.S. Markets for Growth
Digested From "REIT Rides Prosperity Wave"
Wall Street Journal (03/09/11) by Dawn Wotapka
UDR Inc. is looking to complete its metamorphosis into one of the leading apartment owners in America's larger cities. To this end, the Denver-based REIT recently established beachheads in Boston and New York with big deals in each of those markets. UDR is not only planning more purchases in the latter, it wants to enter Chicago and Miami. Such expansion, though, has saddled UDR with debt. In fact, it has nearly $500 million maturing in 2012. Some analysts expect the company to issue additional equity, which will likely dilute current shareholders. At the same time, the big-time price tags on its recent deals have raised concerns. Specifically, UDR's $260.8 million purchase of 10 Hanover Square in Manhattan ranks as one of the biggest multifamily housing transactions in the country recently. Tom Toomey, who has served as UDR's chief executive for the past decade, says the strategy is to "take advantage of that demographic wave coming at us" by focusing on "cities 25-to-35 year olds would be moving to." The REIT now controls almost 60,000 rental units in two dozen markets, with average rents of nearly $1,200 a month. That is up from around $700 a month 10 years ago. In focusing on the nation's bigger markets, UDR has continued to exit from Middle America, figuring that the most success can be had focusing on younger people paying higher rents in highly populated markets.
Mid-America Apartment Communities Renamed MAA
Digested From "Coffee Break: Apartment Giant Gets New Name"
Memphis Commercial Appeal (TN) (03/12/11)
Mid-America Apartment Communities Inc. has changed its name and updated its logo, reflecting the fact that it has expanded its operations well beyond the Mid-South region. The Memphis-based REIT will now be conducting business as MAA, the same as its ticker symbol on the New York Stock Exchange. MAA Chairman and CEO Eric Bolton remarks, "Over the last 17 years as a publicly owned company, we have grown from a portfolio of 6,000 apartments focused on the Mid-South area, to a portfolio of 47,000 high quality apartment homes diversified across the Sunbelt region of the U.S. Our updated brand identity is designed to better reflect the larger footprint and dynamic growth capabilities that we now have in place." He adds that the new logo can be viewed at the company's new website, maac.com, which features apartment search functions and information on the REIT's Brighter Living and Greener Living initiatives.
Las Vegas Apt Vacancies Slip in Feb From Prior Month
Digested From "Las Vegas Apartment Vacancies Slip in February From Prior Month"
Las Vegas Review-Journal (03/12/11) by Hubble Smith
CB Richard Ellis is reporting that the Las Vegas apartment vacancy rate decreased to 9.6 percent last month from 9.9 percent in January. The decline reflects continued migration from single-family homeowners into rental apartments. According to Spence Ballif, apartment specialist for the brokerage firm in Las Vegas, all categories seem to be improving. The Class A vacancy rate was 6.9 percent for 37,633 rental units reporting, while the Class B vacancy was 8.8 percent (41,188 units) and 14.1 percent for Class C apartment communities (29,677 units). Ballif concludes, "There are still quite a bit of single-family foreclosure in front of us, and it will be interesting to see how that affects apartment fundamentals going forward."
Harbor Group Affiliate Buys Va. Apartments for $165.9 Million
Digested From "Norfolk Firm Spends $165.9 Million to Buy Local Apartments"
Virginian-Pilot (VA) (03/09/11) by Josh Brown
One of Harbor Group International's affiliates will spend $165.9 million to acquire a portfolio of eight apartment communities in Hampton Roads, Va.. Together, the various communities contain a total of more than 2,500 rental units. The Norfolk, Va.-based property investment firm is buying the apartments from Great Atlantic Management Co., a Virginia Beach-based company that owns over three dozen apartment communities statewide. The deal more than doubles the number of apartments Harbor Group owns and operates in the Hampton Roads area. Harbor Group President T. Richard Litton remarks, "At a macro level, we remain very bullish on the apartment rental market in Hampton Roads. These assets are a good mix from a geographic standpoint." Harbor Group expects to spend nearly $11 million renovating all eight communities. After the sale is completed, Great Atlantic will own approximately 6,000 apartments in and around Hampton Roads. Great Atlantic President Aubrey Layne comments, "We've had the properties for a while. This gives us the ability to lock in the profits and decide whether to reinvest them or not."
Wealthy Invest in Commercial Property, Especially Apts
Digested From "Wealthy U.S. Individuals Invest in Commercial Property in Quest for Yield"
Bloomberg (03/10/11) by Margaret Collins; Oshrat Carmiel
Real Capital Analytics Inc. is reporting that high-net-worth individuals invested $2.1 billion in commercial real estate in 2010, an increase from $579 million a year earlier. The research showed that apartments were the properties most sought after by investors last year, accounting for 32 percent of deals they were involved in. Dan Fasulo, managing director at Real Capital, comments, "Commercial property looks damn attractive versus other asset classes right now. Everyone's looking for some form of inflation protection. They're buying gold, they're buying oil, or you can buy property. It has inflation protection characteristics, plus it gives you a check every month." Through Dec. 31, prices for commercial space have plunged 42 percent since their October 2007 peak, according to the Moody’s/REAL Commercial Property Price Index. The index, though, registered gains in three of the last four months of 2010 as individual and institutional investors including the Hartford Financial Services Group Inc. wagered on a rebound. Demand for apartments, meanwhile, has increased as the foreclosure crisis forces more people to rent and the children of Baby Boomers move from college dormitories to their first homes. In the fourth quarter of 2010, Axiometrics Inc. notes that rents rose 4.3 percent -- the most since the third quarter of 2006. At the same time, U.S. homeownership rates remained at a 10-year low.
Chicago Awards Included at Least One Apartment Winner
Digested From "Willis Tower's 'Ledge' Among Real Estate Award Winners "
Chicago Sun-Times (03/11/11) by David Roeder
The annual Chicago Commercial Real Estate Awards were handed out Thursday evening, which many Windy City property professionals consider the Oscars of the industry. This year's honors were announced at a dinner to raise money for the Greater Chicago Food Depository. Fifield Cos. was honored as Developer of the Year for completing an 848-unit apartment community in the West Loop called Alta at K Station. Other awards included Jones Lang LaSalle Inc. for Project Manager of the Year and CB Richard Ellis Group Inc. for Property Management Company of the Year. The Chicago Sun-Times founded the annual honors, which is currently in their 23rd year.
Apartment Owner PJ Finance Files for Bankruptcy
Digested From "PJ Finance Company Files for Bankruptcy"
BankruptcyHome.com (03/08/11) by Eric Sanderson
PJ Finance Co., owner of 32 apartment communities in four states, has filed for bankruptcy protection after disclosing that it owes more than $475 million to creditors. Currently, 1,700 of the firm's 9,500 apartments are not able to be rented because of a lack of money to maintain their communities. PJ Finance is looking for investors resources in order to pay off its debt. However, a lack of bank assistance has forced the company into Chapter 11. Currently on the table is a $42 million influx of cash from Gaia Real Estate Investments. But because of the lack of help from banks, this financial support has been put on hold. PJ Finance's apartment communities are spread throughout Arizona, Florida, Tennessee, and Texas.
'Sunburnt' Cities to Eventually See Housing Rebound
Digested From "'Sunburnt' Cities Have a Shot to Control Growth"
USA Today (03/08/11) by Haya El Nasser
Across the Sun Belt, the recession and housing bust contributed to numerous foreclosures, but experts say the warm climate eventually will contribute to a rebound in the region. In the meantime, they say cities in Arizona, California, Florida, and other Sun Belt states hit hard by the housing downturn have a chance to reconsider development. Tufts University urban planning professor Justin Hollander says, "There's an extraordinary potential for 'sunburnt' cities to embrace the idea of the smart decline." Rising energy prices, environmental concerns, the desire for an urban lifestyle near shopping and jobs, and local government budget deficits could drive the transformation of the Sun Belt cities. Planners say cities could see more high-rise apartments, condos, and townhouses in close proximity to public transit, shopping, and businesses. "We need to provide diversity in housing, provide choices for young people who say they are not ready to take care of a yard and want to be in the downtown area," says Phoenix planning director Debra Stark.
Legislative/Legal News
Fannie, Freddie Executive Loss a Concern: Regulator
Digested From "Fannie, Freddie Executive Loss a Concern: Regulator"
Reuters (03/08/11) by Al Yoon
Federal Housing Finance Agency director Edward DeMarco is concerned about the departure of several executives from Fannie Mae and Freddie Mac during the past month. He says the companies need to retain key employees in preparation for reforms to the housing finance system, although he acknowledges that employees face uncertainty as Fannie and Freddie likely will be eliminated. DeMarco says, "We need to protect the taxpayer interests in (Fannie Mae and Freddie Mac) by ensuring each company has experienced, qualified people managing the day-to-day business operations. Any other approach puts at risk the management of more than $5 trillion in mortgage holdings and guarantees supported by taxpayers."
West Des Moines Re-Evaluates Low-Income Housing Policy
Digested From "West Des Moines Re-Evaluates Low-Income Housing Policy"
Des Moines Register (IA) (03/09/11)
In Iowa, requests for Des Moines' support from two builders seeking to use the state's low-income housing tax credits to finance West Des Moines apartment communities have spurred the City Council to re-evaluate its policy for endorsing such projects. In both cases, the city declined to submit letters of support for the builders -- Conlin Properties of Des Moines and Equal Development of Carmel, Ind. This past week, though, council members announced they will consider new criteria for weighing the merits of future tax credit projects. As of now, only housing developments for senior citizens receive city approval. Council member Charles Schneider confirms, "This is a new issue for us. It deviates from our current policy."
HUD Secretary: Fannie, Freddie Housing Goals Didn't Work
Digested From "HUD Secretary: Fannie, Freddie Housing Goals Didn't Work"
Wall Street Journal (03/03/11)
Earlier this month, the Obama administration's top housing official lambasted the government's affordable-housing mandates requiring Fannie Mae and Freddie Mac to issue loans to underserved borrowers as ineffective. HUD Secretary Shaun Donovan stated, "The vast majority of mistakes that were made -- poor underwriting standards, underpriced risk and insufficient capital with inadequate regulatory or investor oversight -- closely mirrored those made in the private-label securities market where affordability goals were simply not a factor." He further noted that the mandates did not meet the needs of the populations they were intended to benefit. "Worst of all," he added, "they failed to prohibit the kind of high-cost predatory loans which devastated minority communities."
Cary, N.C., Police Focus on Apartments
Digested From "Cary Police Focus on Apartments"
Raleigh News & Observer (NC) (03/14/11) by Andrew Kenney
The town of Cary, N.C., recently reorganized its police ranks and funding in order to focus on the growth in apartment communities locally. Dubbed Project Phoenix, the initiative kicked off March 9 with an eight-hour training session for area apartment owners and managers. The program calls for a trio of Cary officers to patrol apartment communities, talking to managers and developing strategies for the more densely packed areas. According to a recent Cary police report, apartment residents reported crimes at a rate of 4.9 per hundred units over a two-year period. That is compared to a rate of 3.6 for single-family residents. The newly formed Cary police squad has been running a pilot program since January that has included a dozen of the 60 or so apartment communities in Cary. Team members might suggest better designs for exterior lighting and other security measures. In addition, they may also help managers develop resident screening tactics and lease accords that allow for the eviction of those convicted of crimes.
NYC Lends a Helping Green Hand to Apartment Owners
Digested From "NYC Lends a Helping Green Hand to Apartment Building Owners"
Mother Nature Network (03/09/11)
PlaNYC, Mayor Michael Bloomberg's ambitious agenda to reduce New York's greenhouse gas emissions by 30 percent by the year 2030, has taken aim at the city's apartment stock with a number of housing-specific initiatives. The newest is NYC Green House, a comprehensive online resource geared to help the owners of apartment buildings make their assets more earth-friendly by focusing on four key areas: energy, water, materials, and community. Launched in February, NYC Green House was made possible by HSBC Bank and is sponsored by the NYC Department of Housing Preservation and Development and the Community Preservation Corporation. It features a slew of program partners ranging from large utilities such as Consolidated Edison and National Grid to various city agencies, including the New York City Housing Authority.
Abstract News © Copyright 2011 INFORMATION, INC.
|