Headlines
Top Story
Gorman Sworn in as Chairman of National Apartment Association
Industry News
Real Estate Investors See Signs to Buy Apartments
North Jersey Apartment Market Picks up Steam
Orange County, Calif., Apartment Communities Offer Furnished Units
Investing in REITs on a Positive Run
Milwaukee Area Apartment Vacancy Rate Dropping, More Units Opening
Orlando No Longer Leads U.S. in Empty Rental Units, Homes
Franklin Street Targets Apartment Growth, Expands in Atlanta
Inland Diversified Real Estate Acquisitions Makes First Apartment Play
Jones Lang LaSalle: Multifamily Housing's Fundamentals Rebounding
Berkadia Explores Loan Program for Multifamily Housing Buyers
Home Properties Invests in Second 'Best Place to Live' in America
Legislative/Legal News
Compost Convert Ranks Are Growing
Houston Considers Pest Task Force for Apartments
Fate of Affordable Housing Trust Fund TBD
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
Gorman Sworn in as Chairman of National Apartment Association
Digested From "Businessman to Chair National Apartment Group"
Inside Indiana Business (11/24/10)
Rose Property Group President Mike Gorman was recently sworn in as 2011 National Apartment Association (NAA) Chairman of the Board during a ceremony at the Indianapolis Marriott Downtown. Gorman, who has almost three decades of experience as an apartment management industry professional, was elected to the Indiana Apartment Association's (IAA's) Board of Directors in 1995. He later served as its president in 2001 and 2002. With the NAA, Gorman has served on its Executive Committee since 2007 and was NAA Chairman-Elect in 2010. As an active member of the IAA, he has played a key role in the association's efforts to effect change within the multifamily housing industry. In particular, he took an active role in IAA's efforts to make property tax caps permanent in the Indiana state constitution.
Industry News
Benefit by centralizing your property management information in a single database with Yardi Multifamily Suite™. Learn More…
Real Estate Investors See Signs to Buy Apartments
Digested From "Real Estate Investors Look to the Future, and See Signs to Buy Apartment Towers"
New York Times (11/24/10) by Kristina Shevory
At the beginning of this year, Equity Residential CEO David Neithercut set a target of $1 billion to spend on apartment communities nationwide. By the middle of this month, after acquiring 15 such communities, he had invested $1.4 billion. Equity Residential now ranks as the top apartment buyer this year, according to Real Capital Analytics. It also joins a list of public, private, and institutional investors that are plowing money into apartments at a time when the market for most commercial properties has fallen flat. In the third quarter, sales of apartments soared 63 percent over the previous quarter to $8.5 billion. Sales this year through the third quarter topped $18.5 billion, almost twice the total from the same period a year ago. By contrast, sales through the first nine months of 2006 were $659.6 billion. Several factors are behind the increase in apartment sales this year, ranging from low interest rates to a lack of new construction to falling vacancy rates. At the same time, real estate investors are eager to spend cash reserves hoarded in the bust. Among the most active is CB Richard Ellis Investors, which started a multifamily arm two years ago and has spent almost $1 billion since April 2009 on apartments. The deals are either all-cash or combine low debt with cash. Hessam Nadji, managing director of research and advisory services at Marcus & Millichap, states, "Investors see this as a great opportunity to get their hands on assets of the highest quality."
North Jersey Apartment Market Picks up Steam
Digested From "North Jersey Apartment Market Picks up Steam"
NorthJersey.com (11/28/10) by Donna Rolando
North New Jersey's apartment sector weathered the economic storm better than the region's home sales market and is now reaping the benefits of those still on the fence about homeownership. Vacancy rates are declining and rents are on the rise partly due to potential owners taking a wait-and-see approach with regards to buying. Looking ahead, Ronald Ladell, vice president of AvalonBay Communities Inc. and a New Jersey Apartment Association board member, forecasts that "rents will be stronger" with demographic trends in favor of rental units -- most notably job growth for the under-30 age group, which includes a large segment of those who rent. A year ago, apartment owners and managers were offering concessions to draw residents. Since then, Ladell notes, "that has burned off. For rental companies, it's a positive change."
Orange County, Calif., Apartment Communities Offer Furnished Units
Digested From "Will 'Snowbirds' Flock to Irvine This Winter?"
Orange County Register (CA) (11/26/10) by Erika Chavez
Seven Orange County, Calif., apartment communities are now offering furnished rental units for those looking to escape cold winter climates. Located in Irvine and Newport Beach, the 200 furnished apartments begin at $3,000 a month, with residents required to book them for at least 31 days. Such communities generally rent furnished suites to corporate executives on extended work assignments. At the same time, many have been rented out during summer months by those seeking to escape the extreme heat of other locales. Kerri Zarzana, director of sales for Irvine Company Apartment Communities (IAC), says her company is now hoping that "snowbirds" -- those seeking to temporarily live in warmer spots during the winter -- will flock to their resort-style communities. Zarzana states, "We want to share this extended residential vacation opportunity with colder-climate residents seeking a warmer alternative."
Investing in REITs on a Positive Run
Digested From "REITs on a Run"
Bank Investment Consultant (12/01/10) by Dave Lindorff
Despite stagnant unemployment, declining housing prices, and high vacancies in office buildings and idle strip malls, multifamily rental property REITs have been enjoying excellent performance. Some top-performing vehicles are up over 100 percent and 200 percent for the year, while the overall index has risen 26 percent by early November. "Even though you've got big job losses continuing in 30 of the top 40 regions of the country, we're seeing new rentals going off the charts," says Bill Acheson, an analyst with The Benchmark Co. in New York. Driving this growth is an unprecedented decline in the national home ownership rate, down 0.7 percent this year over last. "People are just not willing to commit to home purchases and some people are leaving homes and becoming renters," he says. That's keeping rental rates strong and even leading to modest rent increases, at least in line with inflation. "This all works to the advantage of multifamily rental REITs," Acheson says. Fitch just upgraded its outlook on the U.S. REIT sector from negative to stable in June. Dividend payouts are rising again, though he doesn't expect them to reach pre-crisis levels soon, and multifamily residential and commercial retail REITs should benefit from prices and rents in those property categories starting to recover in 2011.
Milwaukee Area Apartment Vacancy Rate Dropping, More Units Opening
Digested From "Milwaukee Area Apartment Vacancy Rate Dropping, More Units Opening "
Milwaukee Journal Sentinel (11/24/10) by Tom Daykin
Marcus & Milichap Real Estate Investment Services reports that the vacancy rate for the Milwaukee metro area's apartment market is expected to shrink by 20 basis points to 4.8 percent this year. That is compared to a 130 basis point jump in 2009. The firm's research also predicts that effective rents and asking rents will rise 2 percent and 1.2 percent, respectively, to $780 per month and $813 per month. Meanwhile, a tighter vacancy rate in the Milwaukee area compared to the U.S. average continues to encourage new apartment development. A total of 640 new rental units are on pace to open in 2010, the biggest supply increase since 2000.
Orlando No Longer Leads U.S. in Empty Rental Units, Homes
Digested From "Orlando No Longer Leads U.S. in Empty Units, Homes"
Orlando Sentinel (FL) (11/22/10) by Mary Shanklin
After leading the country in rental apartment vacancies during the first three months of this year, the latest U.S. Census report shows that Metro Orlando's residential-leasing market looks to have improved more than nearly every major U.S. city. The four-county metro area posted a third-quarter apartment vacancy rate of 13.5 percent, a decrease from 20.6 percent as of March 31. The research shows that Metro Orlando went from having the highest rate of empty rental units to ranking 21st out of the 75 biggest U.S. metro areas chronicled by the Census. Only Jacksonville, Nashville, and Akron reported greater improvement. Orlando's homeowner-vacancy rate also showed signs of improvement. In the first quarter, the market led the nation with an 8.3 percent vacancy rate among single-family houses on the selling block. By Sept. 30, those vacancies were down to 3.8 percent -- the 11th-highest rate in the U.S.
Franklin Street Targets Apartment Growth, Expands in Atlanta
Digested From "Franklin Street Expands in Atlanta"
GlobeSt.com (11/23/10) by Jennifer LeClaire
In Atlanta last week, Franklin Street just moved into a larger space after opening its first office locally back in February. Still based in the Piedmont Center, Franklin Street hopes to continue its growth in the area market. Mac McCall, regional managing director of Franklin Street's Atlanta office, states, "We've been very focused on retail in Atlanta. Our next goal is to build out our multifamily team." Indeed, Marcus & Millichap expects Greater Atlanta's apartment sector to take a positive turn in the new year. With only 4,900 apartments coming online in 2010 coupled with an improved economic outlook, multifamily housing is indeed expected to gain steam in Atlanta and its suburbs. To this end, Franklin Street is moving fast to build its multifamily housing broker team to handle the expected increase in velocity in 2011.
Inland Diversified Real Estate Acquisitions Makes First Apartment Play
Digested From "Inland Diversified Real Estate Acquisitions, Inc. Announces the Purchase of 300-Unit Apartment Complex in Houston for $20.7 Million"
Business Wire (11/22/10)
Inland Diversified Real Estate Acquisitions Inc. this week acquired the 300-unit The Crossings at Hillcroft apartment community in Houston for approximately $20.7 million. The acquisition is notable in that it marks the first apartment community in Inland Diversified's portfolio, which to date has consisted mostly of retail properties. Inland Diversified President and COO Barry Lazarus comments, "We believe well-located multifamily properties will form a stable complement to our core portfolio of retail assets. As our portfolio continues to grow, our flexibility as a buyer allows us to take advantage of investment opportunities across multiple asset classes."
Jones Lang LaSalle: Multifamily Housing's Fundamentals Rebounding
Digested From "Jones Lang LaSalle: Multifamily Market's Fundamentals Rebounding"
Citybizlist Baltimore (11/24/10)
Jones Lang LaSalle's Jubeen Vaghefi polled more than 100 large-scale owners and investors in multifamily housing and found that almost 93 percent of them expect to raise their allocation into the sector next year. Based on third-quarter tallies, total transactions' volume has soared more than 90 percent year to date. Trade volumes for the office and retail property sectors, in turn, have declined and are now in the range of 75 percent to 90 percent. Vaghefi remarks, "Demand for multifamily product is so great, it exceeds supply -- causing investors to bid up quality properties."
Berkadia Explores Loan Program for Multifamily Housing Buyers
Digested From "Berkadia Offering Fixed-Rate Loans"
GlobeSt.com (11/23/10) by Ian Ritter
Berkadia Commercial Mortgage is now exploring a short-term floating-rate loan program for multifamily housing buyers with pending Freddie Mac and Fannie Mae deals. Next year, meanwhile, it will begin offering fixed-rate loans that will be included in a new generation of commercial mortgage-backed securities loans.
Home Properties Invests in Second 'Best Place to Live' in America
Digested From "Home Properties Invests in Second 'Best Place to Live' in America"
Zacks Equity Research (11/22/10)
Home Properties Inc. has acquired a couple of apartment communities in Howard County, Md., which MONEY Magazine recently ranked second on its "Best Places to Live in America" list. Miki Wilson, regional vice president, Baltimore, for the REIT, remarks, "The addition of Charleston Place and The Greens at Columbia rounds out the housing choices Home Properties has to offer around the Beltway. We are excited that MONEY Magazine has recognized the dynamic lifestyle Columbia/Ellicott City has to offer our residents." Home Properties owns, manages, acquires, and rehabilitates apartment communities and commercial space in selected Northeast, Midwest, and Mid-Atlantic markets of the United States.
Legislative/Legal News
Compost Convert Ranks Are Growing
Digested From "Compost Convert Ranks Are Growing"
San Francisco Chronicle (11/28/10) by Heather Knight
San Francisco's one-year-old mandatory composting law has been chiefly responsible for the local apartment sector stepping up its composting efforts. This time a year ago, only 20 percent of apartment communities in the city sported green composting bins. Today, that figure has soared to 70 percent. Mark Westlund, spokesman for the Department of the Environment, describes the new law as "the ultimate marketing tool." To date, San Francisco has yet to impose a fine on any owner or manager for not complying, because it has found that just informing them there is now a law on the books has done the trick. Westlund remarks, "People are just signing up. We're finding they're very cooperative." Meanwhile, apartment residents whose owner/managers do not offer the green composting bins can anonymously report them to the city on the department's Web site. The department is also in process of mailing out literature that tells residents how to get such service. That is followed by a visit from an expert, who meets with the apartment owner to determine the best way to implement composting, taking into account whether each building has trash chutes and determining where there is enough communal space for a new bin. Each resident also gets a bin for his/her kitchen.
Houston Considers Pest Task Force for Apartments
Digested From "Houston Considers Pest Task Force"
Macon Telegraph (GA) (11/26/10) by Shelby G. Spires
In Georgia, leaders from major Houston County municipalities are considering the establishment of a pest management ordinance for apartment communities. This ordinance would set standards for residences and public areas, but would also establish a public education and outreach program. Infestations ranging from bedbugs and other insects to rats and mice can become a serious problem around derelict communities and older buildings, especially those that are not kept clean. Carla Coley, Houston County Environmental Health Manager, states, "Infestations stretch beyond bedbugs. We want to start educating people on what they can do and what they cannot do to help cut down on pests." She adds that such simple measures as covering mattresses with plastic slipcovers can help reduce infestations. So too can properly spraying for pests outdoors. According to Coley, the goal of an ordinance would make enforcement a serious priority. With currently no fine or citation structure in place, law enforcement can only issue warnings. Captain Alan Everidge of the Houston County Sheriff’s Office calculates that there are more than 100 apartment communities in the unincorporated area of Houston County could contribute to potential infestation problems.
Fate of Affordable Housing Trust Fund TBD
Digested From "Fate of Affordable Housing Trust Fund TBD"
GlobeSt.com (11/29/10) by Erika Morphy
The fate of the National Housing Trust Fund (NHTF), currently languishing in Congress for lack of funding, may be uncertain until the next Congress. A bill funding the NHFT passed the House, and is currently part of the Senate’s extender bill, which may not pass. The Senate extenders bill contains $1 billion for the NHTF, $65 million for project-based vouchers to be used in NHTF units, and provisions to extend the Low Income Housing Tax Credit exchange program for one year. It also extends the placed in service deadline for the Gulf Coast’s Gulf Opportunity Zone tax credits. All of these items have been fully offset by cuts elsewhere. Additionally, there are several long-time Republican supporters of the measures, potentially helping the measure to move as a standalone bill or as part of a larger tax bill that will deal with the expiring Bush tax cuts. However, prospects of any action during the current lame-duck session remain uncertain.
Abstract News © Copyright 2010 INFORMATION, INC.
|