NAA Community Site & Online Resource Center Now Live
NAA launched the NAA Community Site & Online Resource Center on November 1, and all members can log onto the site using their NAA Web ID and password to take advantage of the latest NAA member benefit.
Visit community.naahq.org (please note there is NO www in the URL) to access the Online Resource Center, participate in online discussion forums and connect and network with other NAA members.
The site features a number of video tutorials on how to use the site’s different features, and a list of FAQ to help NAA members navigate the site as easily as possible.
Beta Testers found the site to be exciting and informative. “I am a new manager and enjoy learning from others; hearing the first hand experiences, etc. I like finding so much information in one place,” said one beta tester. Another said: “I think it will be a great tool for our industry, and I am looking forward to perusing it often!”
Headlines
Top Story
How the Election Will Affect Housing
Industry News
Fannie Mae and Freddie Mac Could Cost U.S. $685 Billion
Apartments Could Be a Construction Bright Spot for San Francisco
More Apartment Owners Are Paying for Internet Access
Essex Property Trust CEO Guericke to Retire
Mid-America Apartment Communities Posts Strong Q3 2010 Results
AvalonBay's Bryce Blair is NAREIT's New Chair
Influx of New Units Could Make Apartment Market in Mobile Competitive
RealPage Acquires Level One
Freddie Mac Loses $4.1B, Seeks More Federal Aid
Lehman Seeks to Convert More Archstone Debt
Grubb & Ellis Apartment REIT Name Change is Coming
Home Properties Adds Lydon as a Director
Legislative/Legal News
NAA's Greg Brown on Apartment Industry Issues in New Congress
Potential House Financial Services Committee Chair Wants to Abolish GSEs
Republican Takeover of House Could Complicate GSE Reform Debate
Austin to Expand Recycling Efforts, Affecting Apartments and Offices
Top Story
Time Warner Cable Community Solutions has proven success partnering with MDU owners, providing quality voice/video/data products to their residents.
How the Election Will Affect Housing
Digested From "How the Election Will Affect Housing"
Newsweek (11/02/10)
Since Fannie Mae and Freddie Mac were seized by the U.S. government in the fall of 2008, most Capitol Hill legislators have been tight-lipped about what will become of them. The White House has vowed to deliver a plan for the future of housing finance a few times, but has ultimately put it off until 2011. Restructuring Fannie and Freddie would have been difficult enough when one party dominated Capitol Hill. Now with the Republicans splitting the legislative branch, it may be completely impossible. Liberal lawmakers tend to favor a system that keeps the government deeply involved in the mortgage market. By contrast, conservatives want the government to exit mortgage-finance completely, leaving it to the market to decide. The first option would keep mortgage credit flowing freely and probably make it more available. The second option would restrict credit, excessively for some parts of society. During the boom years for subprime-loan origination, Fannie Mae and Freddie Mac's share of new-mortgage origination plunged to 37 percent from 57 percent in just two years. At the same time, shareholders pushed the two GSEs to move deeper into subprime for profits. Congress followed suit by extending more home loans to their constituents. The subprime crisis got Fannie and Freddie into hot water. However, by 2009, the two firms once again represented a majority-- more than three-quarters -- of new mortgage business thanks to taxpayers' backing.
Industry News
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Fannie Mae and Freddie Mac Could Cost U.S. $685 Billion
Digested From "Mortgage Giants Could Cost U.S. $685 Billion"
Washington Post (11/05/10) P. A14
Standard & Poor's estimates that Fannie Mae and Freddie Mac could cost taxpayers as much as $685 billion as the U.S. government covers losses and revamps the housing-finance system. Costs for resolving the firms could top $280 billion, including $148 billion already provided under a federal guarantee of endless support. Washington may spend another $405 billion to capitalize a replacement for the companies, which own or insure over 50 percent of the national mortgage market.
Apartments Could Be a Construction Bright Spot for San Francisco
Digested From "Apartments Could Be SF Construction Bright Spot"
San Francisco Chronicle (11/05/10) by Robert Selna
Ken Rosen, who chairs the Fisher Center for Real Estate and Urban Economics at University of California Berkeley, forecasts that the only new construction in San Francisco for the next couple of years will be apartments. He expects demographics and several other factors will drive apartment construction in the city, while office and other building types should remain "static." He adds, "Eighty million people in this country are going to be older than 65 in the next 20 years and the Baby Boomers' kids will be needing housing. More and more people want to live in cities, so urban housing is the demographic sweet spot." Apartment residents are already are a growing segment of the local as foreclosures and an unstable job market have moved people away from owning single-family homes and toward rental units. In the Bay Area, most jobs are in the city cores and workers are increasingly wary of long commutes. With a mild economic improvement in San Francisco over the last year, the apartment vacancy rate has continued to decrease to just above 2 percent. Rosen remarks, "San Francisco and Washington, D.C., are leading the nation in vacancy rates falling fast. And rent increases are on the horizon." San Francisco developers concur that the local market is ripe for new apartment construction, but they need banks to loosen up in issuing loans. Most of the projects now under construction are a product of creative financing. For example, Martin Building Co.'s 94-unit Arc Light apartments broke ground in September after receiving funding from the AFL-CIO's Investment Trust.
More Apartment Owners Are Paying for Internet Access
Digested From "Landlords Woo Tenants With Free Wi-Fi"
Laconia Citizen (NH) (11/07/10) by Roni Reino
More and more apartment owners are paying for wireless Internet access as a way to reward current residents and entice prospective ones. Tom Toye, owner of Arthur Thomas Properties, remarks, "The real advantage is cost savings. If it's something people have to save $50 a month, that's an extra $50 they can use for gas money or insurance." Apartment communities that go this route are typically provided with one line of broadband shared among residents. The wireless signal is encrypted and password-protected. National Apartment Association spokesman Paul Bergeron concurs that offering such access to residents as an amenity can be a useful tool for apartment owners and managers. He adds, "With consumers demanding greater use, better access, and more convenience of Internet connectivity at home, apartment owners who are able to offer options and higher bandwidth to residents can gain an advantage in attracting new residents while retaining those who they already have." Owners are encouraged to follow the lead of those Arthur Thomas communities that provide free wireless Internet to residents in that they also feature maintenance request forms available online, along with Web-based rent payment options.
Essex Property Trust CEO Guericke to Retire
Digested From "Essex Property Trust CEO to Retire"
San Francisco Business Times (11/03/10) by Steve E.F. Brown
Keith Guericke has announced his retirement as president and CEO of Essex Property Trust Inc., effective at the end of next month. Guericke is a 33-year veteran of the California-based apartment REIT. Essex Property COO Michael Schall has been tapped to succeed him as of Jan. 1. He has worked for more than two decades at the company, having served on Essex's board since 1994. For his part, Guericke will still be vice chairman of the board after he retires. He has also agreed to serve as a consultant to the REIT.
Mid-America Apartment Communities Posts Strong Q3 2010 Results
Digested From "Memphis-Based Mid-America Apartment Communities Reports Strong 3Q Numbers"
Memphis Commercial Appeal (TN) (11/04/10)
Mid-America Apartment Communities posted better-than-anticipated Q3 2010 results, which prompted the company to raise its earning guidance for 2010. Funds from operations totaled $29.9 million in the July-through-September period versus $27.4 million a year earlier. Over that same time span, revenue totaled $101.2 million compared to $94.9 million. The Memphis-based REIT currently has ownership stakes in 46,269 apartment units.
AvalonBay's Bryce Blair is NAREIT's New Chair
Digested From "AvalonBay's Bryce Blair is NAREIT's New Chair"
GlobeSt.com (11/07/10) by Erika Morphy
The National Association of Real Estate Investment Trusts (NAREIT) has announced its 2011 officers, including AvalonBay Communities Chairman and CEO Bryce Blair as its newly elected chair. Other NAREIT officers for the new year range from Federal Realty Investment Trust President and CEO Donald Wood as first vice chair to Public Storage President and CEO Ronald Havner Jr. as treasurer. In addition, NAREIT has decided to move its state of incorporation from Massachusetts to Washington, D.C., and adopt new bylaws, one of which is a provision that assigns all governing authority for the association to a 15-member executive board. This board will be charged with appointing the members of NAREIT's Audit and Investment Committee and an advisory Board of Governors consisting of NAREIT members.
Influx of New Units Could Make Apartment Market in Mobile Competitive
Digested From "Influx of New Units Could Make Apartment Market in Mobile Competitive"
Mobile Press-Register (AL) (11/07/10) by Kathy Jumper
Developers say apartment occupancy in Mobile, Ala., is on the rebound following a slow summer. That could change, though, with 800 new rental units set to hit the market this fall. Dave Rodgers of Dominion Partners says the addition of so many new apartments "will make for a competitive winter quarter." To get leasing activity up, he and others expect more move-in incentives will be offered. Leasing agents in Mobile and Baldwin counties say the rental apartment market as a whole has stabilized following a year of hits and misses. When interest rates sank to 4 percent or less, many apartment residents opted to buy homes and moved out. Meanwhile, the BP oil spill drew cleanup workers, which led to a three-month occupancy boost. Overall, the National Apartment Association (NAA) predicts a rapid recovery in the market during the new year. While the economy as a whole will remain slow to rebound, NAA President Doug Culkin notes that 2010 was the best year for young adult hiring since 1984. That means more of those young adults will be forming their own households.
RealPage Acquires Level One
Digested From "RealPage Acquires Level One"
MarketWatch (11/04/10)
RealPage Inc. confirms that its wholly-owned subsidiary has acquired Level One, a leading on-demand apartment leasing center servicing customers nationwide. RealPage, a leading provider of on-demand software and services to the rental housing industry, plans to combine Level One with its CrossFire product family. In doing so, it will provide leasing and maintenance services to more than 4,000 apartment communities throughout the U.S. Level One's on-demand leasing service enables owners and managers to lease more apartments, reduce overall marketing expense, and free-up on-site leasing staff to devote more time and attention to resident satisfaction and renewals. According to RealPage, it paid $54 million in cash and a deferred payment of $8 million which is payable in common shares or cash at RealPage's election within 18 months of closing. Level One CEO Todd Baldree remarks, "We believe new lead generation techniques coupled with on-demand centralized leasing agents available 24 hours a day, 365 days per year will fundamentally change the way apartments are leased by helping owners increase demand for vacant units and reduce overall leasing costs. We wanted to be part of this disruptive change and believe that RealPage is the only firm with the technology, scale, and shared vision to actually deploy such advanced capabilities."
Freddie Mac Loses $4.1B, Seeks More Federal Aid
Digested From "Freddie Mac Loses $4.1B, Seeks More Federal Aid"
Boston Herald (11/04/10)
Freddie Mac narrowed its loss to $4.1 billion for the third quarter and requested an additional $100 million in federal aid, down from the $1.8 billion it sought in the second quarter. However, real estate finance experts are still concerned about the government-controlled mortgage financier because of the housing market's woes.
Lehman Seeks to Convert More Archstone Debt
Digested From "Lehman Seeks to Convert More Archstone Debt"
Wall Street Journal (11/03/10) by Eric Morath
To wipe an additional $237 million in debt off Archstone-Smith Trust's books, Lehman Brothers Holdings Inc. is looking to modify the terms of a $5.2 billion restructuring of the real-estate investment vehicle. According to Lehman, further reducing Archstone's debt will make the apartment owner more attractive to potential buyers. In papers filed Nov. 2, Lehman stated: "By substantially improving Archstone's balance sheet and liquidity position, the restructuring, as modified, is anticipated to enhance market perception of the financial condition of Archstone." Archstone currently has ownership stakes in about 200 apartment communities in the United States and more than 230 communities throughout Europe.
Grubb & Ellis Apartment REIT Name Change is Coming
Digested From "Grubb & Ellis Apartment REIT Name Change is Coming"
Citybizlist Baltimore (11/01/10)
Grubb & Ellis Apartment REIT Inc. has announced that it is changing its name to Apartment Trust of America Inc. This news comes shortly after Grubb & Ellis Co. declared its separation from the REIT. With the separation, the REIT will become a fully self-managed entity, beginning with property management. Jay Olander, CEO of Grubb & Ellis Apartment REIT, comments, "Our previously announced pending acquisition of Mission Residential Management is our first step toward internalization."
Home Properties Adds Lydon as a Director
Digested From "Home Properties Adds Director"
Forbes (11/01/10)
Home Properties has appointed The City Investment Fund President Thomas P. Lydon Jr. to its board of directors, effective Jan. 1. This brings the New York-based apartment REIT's total number of board members to an even dozen. The 62-year-old Lydon previously served as president and CEO of SSR Realty Advisors Inc., a property investment management subsidiary of Met Life. Before that, he held several senior level positions in real estate investment and management companies as well as in commercial real estate lending. Home Properties co-Chairman Norman Leenhouts comments, "Tom's diversified management and real estate experience will be a tremendous asset to Home Properties' board." Home Properties currently owns 115 apartment communities containing 38,630 rental units.
Legislative/Legal News
NAA's Greg Brown on Apartment Industry Issues in New Congress
Digested From "Special Report: NAA's Greg Brown on Fate of GSEs in New Congress"
Multi-Housing News (11/10) by Joshua Pringle
Greg Brown, vice president of Government Affairs at the National Apartment Association (NAA), is looking forward to educating those new members of Congress who are unfamiliar with the apartment sector and commercial real estate, in general. He states, "Our members and the industry overall are going to have a lot of work to do to make that connection and educate them about the role that apartments play in their districts." He lists the reform of Fannie Mae and Freddie Mac as perhaps the most pressing issue he and his colleagues need to quickly inform the new members of Congress about. Brown states, "Their very existence is what is in question here, and that will determine what kind of role they can play in providing liquidity in the capital markets and serving that role that they have done in the past. I think that's the biggest thing that has to be addressed, and then everything else just kind of falls after that." He concludes that changing the taxation of a carried interest remains among NAA's pressing concern. "Of course we've been working with both sides to educate members about the danger of that proposal for commercial real estate," Brown remarks, "so I think our chances are better in the next Congress that that will not be out there. However, tax reform continues to loom as a desirable issue to take on, and carried interest could get wrapped up in tax reform."
Potential House Financial Services Committee Chair Wants to Abolish GSEs
Digested From "GOP's Tough House Call"
Wall Street Journal (11/04/10) by David Reilly
Spencer Bachus, the leading Republican contender for the chairmanship of the House financial services committee, has made clear he would like to do away with Fannie Mae and Freddie Mac. Still, even he has acknowledged the fragile housing market would have to be weaned from government support as opposed to cut off abruptly. That is certainly the case considering the lack of investor appetite for mortgage debt not backed by the federal government. Also, it would take years to shift to private investors the more than $5 trillion in mortgages the two government-backed mortgage giants own or guarantee. Consequently, Republicans are expected to tread carefully. A serious debate on mortgage finance always has the potential to spook investors, especially vital foreign holders of Fannie Mae and Freddie Mac paper. Even if a quick end to federal support has little chance of becoming policy soon, some could start to worry how iron-clad federal guarantees will be after 2012.
Republican Takeover of House Could Complicate GSE Reform Debate
Digested From "Republican Takeover of House Could Complicate GSE Reform Debate"
American Banker (11/01/10) by Donna Borak
The battle for housing reform and that of the government-sponsored entities Fannie Mae and Freddie Mac will change now that the GOP has taken control of the U.S. House. The Obama Administration has expressed an interest in retaining a portion of the government guarantee offered to the mortgage market, while Republicans oppose the idea and support a more private market solution. While the U.S. Treasury is slated to unveil its reform plans in January, the GOP already has introduced the GSE Bailout Elimination and Taxpayer Protection Act to eliminate Fannie and Freddie, phase out their portfolios, and increase their capital. Democrats, in the meantime, are holding steadfast to the January unveiling, though Treasury Secretary Tim Geithner has let it slip that some form of government guarantee to ensure a stable housing finance market is likely to be included.
Austin to Expand Recycling Efforts, Affecting Apartments and Offices
Digested From "Austin to Expand Recycling Efforts"
Houston Chronicle (11/04/10)
On Nov. 4, the Austin City Council approved proposals that will lead to requiring approximately 4,000 more properties to recycle. Currently, commercial business properties where 100 or more employees work must recycle. The city also currently requires large apartment communities to recycle certain items. The latest changes, which will be implemented over the next two years, will require all apartment communities, condominium complexes, office properties, and institutions to recycle certain items as part of the Texas state capital's Zero Waste Plan. These materials include cardboard, mixed paper, aluminum cans, certain plastics, and glass.
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