NAA/NMHC Launch 'Apartments. We Live Here' Campaign
Digested From "Multifamily Industry Launches New “Apartments. We Live Here.” Campaign"
The National Apartment Association (NAA) and the National Multi Housing Council (NMHC) have teamed to introduce the integrated "Apartments. We Live Here" campaign. It tells the story of how in communities across the nation, apartments help people live in a home that is right for them. Utilizing print, radio, and digital ads, as well as direct mail and Internet, the campaign highlights the approximately 35 million apartment residents building their lives and the $1.1 trillion economic contribution the industry and its residents add to the U.S. economy each year. "Our population is changing and we need housing options like apartments to keep up," said Greg Brown, NAA Senior Vice President of Government Affairs. "We need more housing choices for America, which is what the 'Apartments. We Live Here' campaign is all about." The first wave of the campaign, which highlights the personality of apartment residents through snapshots of their daily lives, began in Washington, D.C. earlier this month.
Market Trend Insights
The Five Things That Will Drive Green Material Demand
Digested From "Report: Green Material Demand to Increase"
GlobeSt.com (05/10/13) Dolce, Natalie
Throughout the global recession, demand for both green buildings and the materials that go into them has stayed fairly buoyant. According to a new Navigant Research report, future market growth for green buildings and the commensurate use of green materials will be driven by five things -- a combination of regulations and policies that prioritize energy efficiency and green design, the expansion of voluntary certification programs for green construction, cost reductions for green materials, consumer demand, and growing evidence that green buildings confer quantifiable market advantages. The Boulder, Colo.-based firm estimates that the global market for green construction materials will grow from $116 billion in 2013 to more than $254 billion in 2020. Eric Bloom, senior research analyst with Navigant Research, states, "Green building materials range from traditional materials that are being revalued for their minimal impacts to advanced technologies that are enabling better passive and active building performance. Incremental improvements in materials science, production efficiency within mature product classes, and changes in design and construction practices are all helping to reduce the impacts from the buildings and materials sectors." He goes on to forecast that the use of product standards and environmental assessments, along with product and company reporting, will play a major role in shaping the green materials market moving forward.
Apartments: Class B Gets a Grade of A in D.C.
Digested From "Demand for Class B Apartments in Washington Area Should Remain Steady"
Washington Post (05/05/13) Gallagher, Maeve
Delta Associates is reporting that the Washington, D.C., metro area's apartment vacancy rate rose to 4.4 percent as of March 31 from 2.2 percent a year earlier. Vacancies increased in the suburbs, but fell slightly in the nation's capital. The average effective monthly rent regionwide still managed to rise 0.1 percent from a year earlier to $1,540. As with vacancies, there were differences across the metro area. Suburban Maryland apartment rents are up 0.2 percent, while rents in the District of Columbia climbed 1.5 percent. Northern Virginia rents, meanwhile, slpped by 0.2 percent year over year. Several factors will likely keep vacancies low for the rest of the year, but may exert some downward pressure on what owners and managers are charging each month. As deliveries of Class A apartment increase between now and the end of the year, pressure on Class B apartment rents could mount if owners of the higher-end communities offer concessions to achieve occupancy goals. This has prompted some Class B apartment owners to renovate their rental units. Delta researchers calculate that almost 32,000 apartments are under renovation areawide, with an average renovation budget of $21,000 per unit. Class B apartment vacancies will likely stay low due to healthy demand from newly created jobs in the modest-wage industries. The Washington metro area continues to add jobs despite sequestration, and conditions should only improve once the outcome of the federal budget becomes more clear.
The No. 1 Reason Why Colo. Vacancies Fell for 14th Straight Qtr.
Digested From "Colorado Apartment Vacancy Rate Drops for 14th Consecutive Quarter"
Denver Business Journal (05/09/13) Huspeni, Dennis
A new Colorado Division of Housing study shows that apartment vacancy rates statewide continue to decline due mainly to the improving job market. This was especially in the northern part of the state where oil and gas development has propelled vacancy rates lower and rents higher. Statewide, the apartment vacancy rate stood at 4.9 percent as of March 31, down from 5.2 percent at the end of 2012's first quarter. That marks the 14th quarter in a row the statewide vacancy rate has decreased. Ryan McMaken, an economist with the Colorado Division of Housing, remarks, "So much of this is driven by employment right now. Vacancy tends to increase with joblessness, and we see this in Grand Junction and Pueblo. The Pueblo unemployment rate has been over 10 percent for more than a year, while the labor force in Grand Junction just hit a six-year low for March, with total employment moving sideways." The study includes all areas except for metro Denver, whose results were released separately in April.
Could High Levels of Homeownership Really Kill Jobs?
Digested From "Study: Higher Levels of Homeownership Can Kill Jobs"
Washington Post (05/07/13) Plumer, Brad
British economist Andrew Oswald made headlines in the 1990s when he first demonstrated a correlation between higher levels of homeownership and higher levels of unemployment within the United States and across European countries. The notion that homeownership makes it more difficult to find a job due to higher moving expenses is now known as "Oswald’s hypothesis." Now, he and Dartmouth's David G. Blanchflower have published a new working paper suggesting that owning a home has an even bigger and wider effect on unemployment than previously thought. According to the researchers, growth in the homeownership rate in a U.S. state is a precursor to eventual sharp rises in unemployment in that state. They also assert that doubling of the rate of homeownership in a U.S. state typically is followed in the long run by more than a doubling of the later unemployment rate. The authors do not suggest that the owners of homes themselves are disproportionately unemployed. Rather, Oswald and Blanchflower assert that homeownership has a much broader -- and negative -- effect on the employment market as a whole due to such factors as lower levels of labor mobility and higher commute times.
Deals and Transactions
Multifamily Housing Partnership Launches, Makes First Buy
Digested From "Unique Foundation-Based Multifamily Housing Partnership Launches; Makes First Investment"
CoStar Group (05/09/13) Heschmeyer, Mark
A newly formed partnership of two major philanthropic foundations -- the John D. and Catherine T. MacArthur Foundation and the Ford Foundation -- and three Wall Street titans -- Citi, Morgan Stanley, Prudential Financial Inc. -- has raised $100 million. They have also established an equity trust that will operate as a REIT and partner with members to buy unsubsidized multifamily housing on the open market. The Housing Partnership Equity Trust (HPET) was formed as a social-purpose REIT. Headquartered in Washington, D.C., it provides a ready source of low-cost, long-term capital, enabling a dozen mission-driven nonprofits to acquire apartment communities for the purpose of providing homes for households with modest incomes. Its first transaction closed earlier this month in Aurora, Ill. HPET Chief Executive Drew Ades comments, "The Housing Partnership Equity Trust demonstrates a new approach to funding affordable housing-one that will streamline the capital-raising process for acquiring affordable housing units and sharply reduce transaction costs as well as the time it takes to close on a transaction." Before joining HEPT, Ades was involved in the multifamily business at Fannie Mae.
What's the Hottest Apartment Market in the Sunshine State?
Digested From "Largo Apartment Sale Adds to Multifamily Activity"
Tampa Bay Business Journal (05/10/13) Holan, Mark
Multifamily housing deals continue to close at a torrid pace in and around Largo, Fla. The latest such transaction is the sale of Landmark at Largo Crossing, a 304-unit apartment community in Largo, for $16,750,000. Marcus & Millichap's Institutional Property Advisors division arranged the sale from Landmark Residential and Brookfield Real Estate Opportunity Fund. Redwood Capital Group was the buyer. In the last couple of weeks, no less than a half-dozen apartment communities totaling more than 1,300 rental units have changed hands locally for more than $97 million.
U.S. Needs 400K Apartments, Says Pa. Apartment Pro
Digested From "400K Apartments Needed Nationwide"
Pittsburgh Business Times (05/10/13) Schooley, Tim
Even though the apartment industry is flourishing, the federally supported American Dream of homeownership means that the apartment industry goes largely unnoticed by policymakers. That is the complaint of Christine Young Gertz, the government affairs director of the Apartment Association of Pennsylvania. She recently stated, "No community can be strong without quality rental housing. We're saying that renting is just as important to a community as homeownership is." She cited industry research that the nation needs to add between 300,000 and 400,000 apartments every year for the next few years to keep up with pent-up demand. "We're way behind in the need for rental housing," she declared.
What's the Need for NYC's Electronics Recycling System for Apts?
Digested From "City Planning to Launch In-House Electronics Recycling Systems for Large Apartment Buildings"
New York Daily News (05/08/13) Fermino, Jennifer
New York City officials announced plans last week to institute an in-house electronics recycling system for large apartment communities. All buildings with more than 10 rental units are encouraged to sign up for the program. The Big Apple lags behind the rest of the state in terms of salvaging electronics. Officials believe that is due to the fact that many residents do not have automobiles and are hesitant to lug such heavy objects to drop-off centers.
Achtung! Germany's Apartment Market Heats Up
Digested From "Apartment Market In Germany Builds"
Wall Street Journal (05/08/13) Miller, Douglas
Deutsche Annington Immobilien GmbH, the company that owns more apartments than any other closely held company in Germany, is getting closer to an initial public offering. In doing so, the firm is aiming to cash in on rising rents and demand for a stock with the potential to offer attractive yields in a low-interest-rate environment. Some observes, though, caution that the timing might have been better if Annington had moved earlier. The company, owner of approximately 200,000 rental apartments, is planning to go to market in early July with its IPO. But the field has gotten increasingly crowded as of late, with more and more investors flocking to the German apartment asset class. In the last couple of years, at least two prominent apartment companies -- GSW Immobilien and LEG Immobilien -- have gone public. They joined Deutsche Wohnen, TAG Immobilien, and Luxembourg-based Gagfah Group -- all major owners of German apartments. Some investors say that, for Annington's IPO to be successful, shares will have to be priced at as much as a 15 percent discount to net asset value. Still, there are plenty of analysts who still say German apartment developers are a safe bet both for their yields and to hedge against Europe's uncertain economic future.
Which New Fund Targets Apartments in Underserved Areas?
Digested From "New $800M Fund To Target Multifamily in Underserved Communities"
National Real Estate Investor (05/09/13) Hinderer, Katie
Canyon Capital Realty Advisors and Citi have teamed up to start a real estate fund that will focus on multifamily workforce housing in underserved communities nationwide. Over the next few years, the Canyon Multifamily Impact Fund will acquire and manage up to $800 million in apartment communities. "Amid increasing housing costs across the United States, the need for quality workforce housing near employment centers is higher than ever," said Dan Millman, principal at Canyon Capital Realty Advisors. "We are focused on acquiring and improving well-positioned properties that offer affordable rental housing options for local residents." The fund will look for assets that advance community development, achieve sound financial returns, and embrace environmental responsibility. The fund will also implement physical upgrades and property improvements on all apartment communities acquired.
Legal/Legislative Did You Know
Why Did Fla. Judge OK the Foreclosure of 7 Apartment Communities?
Digested From "Judge Grants Foreclosure of Hundreds of Run-Down Orlando Apartments"
Orlando Sentinel (FL) (05/10/13) Schlueb, Mark
In Florida late last week, Circuit Judge Alice Blackwell granted the foreclosure of seven west Orlando apartment communities with hundreds of rental units -- the latest chapter in the long-running story of some of the city's most rundown housing. Blackwell ruled that the apartments' owner -- businesses controlled by father-and-son team, Salomon and Jim Yuken -- had defaulted on $18.2 million in mortgage loans. She granted the foreclosure that Fannie Mae had been seeking since 2011, a case that includes two other apartment communities in Jacksonville. The Orlando properties have long been among the city's worst, with plumbing, electrical, and roof problems, mold, broken windows, and unsafe staircases. City officials have slapped the Yukens with code enforcement fines that have totaled over $2.1 million. The owners fought the foreclosure, but their case was undermined in April when Blackwell ruled they destroyed evidence and had failed to turn over financial records. The foreclosure ruling means Fannie Mae can take possession of the various apartment communities as soon as June 17.
Flood of Apt. Complaints Over Calif. Town's Water Rate Hike
Digested From "Fullerton Council Approves Water Rate Increase"
California State University, Fullerton (05/08/13) Edlund, Bevi
In California, the Fullerton City Council recently passed a resolution to increase the water rate -- by 17 per 1,000 gallons -- paid by Fullerton residents and businesses. Nicholas Dunlap, board member of the Apartment Association of Orange County, was the only member to oppose the measure. According to Dunlap, it would put an unfair tax burden on residents who live in apartments. He said studies show that it takes approximately 8,400 gallons of water per month in a household of 3.8 people to provide for basic sanitary needs. Apartments are given 4,000 gallons at the basic rate per building, as opposed to single-family homes, which are given 7,500 gallons at the basic rate. "As a result, the bills are going to skyrocket without a tiered structure," said Dunlap.
Orlando Developers to Lose Tax Break
Digested From "Orlando Developers to Lose Tax Break"
Orlando Sentinel (FL) (05/09/13) Shanklin, Mary
Florida's Orange County has lost more in property taxes than any other county in the state because of a tax break meant for nonprofit-housing groups but which largely benefited companies that develop low-income apartment communities. Florida Housing Finance Corp. calculates that Orange County lost nearly $16 million in taxable-property value in 2012 due to the exemption. The Legislature changed the Sunshine State's property-tax laws two years ago so nonprofit organizations like Habitat for Humanity would not face large property-tax bills when they erected apartments or other multifamily housing developments. However, the exemption also wound up reducing the tax bills of such multifamily developers as CED Cos. and Atlantic Housing Partners. Wellington Meffert, general counsel for Florida Housing Finance Corp., laments, "It appears that none of these projects needed any kind of relief. . . . They are all cash-flowing projects." During its recent session, the Florida Legislature did pass a measure that would eliminate the exemption for apartment owners that team up with nonprofits by transferring their interests to them. The legislation is now on the desk of Gov. Rick Scott awaiting his signature.
What City Is Retooling Its Crackdown on Negligent Apartment Owners?
Digested From "City Code Enforcement Rethinks Rental Housing Strategy"
Indianapolis Business Journal (05/09/13) McLaughlin, Kathleen
After the Indiana Legislature came close to banning any city or town from collecting fees for rental inspection programs, Indianapolis code enforcement officials are having to rethink their plan for cracking down on negligent apartment owners. The issue of rental-property regulation will be taken up by a summer study committee. In the meantime, a one-year moratorium has been enacted on any new fees that will run to July 1, 2014. For now, it effectively removes the city's first -- and probably only -- option for funding a rental-housing registry due to the fact that the Department of Code Enforcement is entirely funded by fees. Indianapolis officials have considered establishing a registry, which would enable the city to more easily track down apartment owners in the event of an emergency or code violation. Department of Code Enforcement spokesman Adam Baker states, "We want to make sure when we move forward with an initiative that it's the right thing to do.” The delay is a disappointment for Indianapolis' southeast-side neighborhoods, in particular, which have been pushing the city for years to create a rental housing database.
Heads Up! Last Chance to Save on Registration for the 2013 NAA Education Conference & Exposition Is Just Around the Corner
The industry event of the year—the 2013 NAA Education Conference & Exposition, June 19-22 in San Diego—is your opportunity to take your organization and your career to the next level. Register by June 6 to take advantage of up to $150 of savings on your investment. But act fast: prices will increase in exactly three weeks.
What awaits you in San Diego? The real question is, “What doesn’t?”
• More than 40 education sessions offering the latest trends and hot topics in all areas of rental housing management, from marketing and leasing to operations and management.
• Eight world-renowned featured speakers, including Sir Richard Branson, international business magnate and founder of Virgin Group, one of the most recognized and respected brands in the world, whose session will be moderated by Bill Rancic, who joined the ranks of famed entrepreneurs after winning the first season of Donald Trump’s “The Apprentice.”
• Attending the 2013 NAA Education Conference & Exposition will give you up to six continuing education credits—all you need to reach your NAA professional designation renewal goal.
• Four days of awe-inspiring networking events, from the Conference Kick-Off Celebration on Wednesday, June 19, the “NAA Rocks The Block: Sparking Connections Opening Party (where two whole blocks of San Diego’s Gaslamp Quarter—including restaurants and shops—will be closed to the public) to the Saturday NAA Awards Breakfast Celebration, featuring special guest speaker Bert Jacobs from Life is good®.
• Three hundred-fifty multifamily service partners exhibiting in the Exposition, a space equivalent to four football fields chalk full of the latest and greatest products and services available to the rental housing industry. And, new this year, extended hours!
And the list just keeps going. Between the scheduled events and surprises in store, missing this event might just be the biggest mistake in your professional career. Read more about what to expect in San Diego.
Catching this wave doesn’t require a surfboard, but you will need to register. Visit the conference website and remember to consider group discounts: register five or more attendees and save your organization up to $400!
Download the Mobile App for the 2013 NAA Education Conference & Exposition
NAA is pleased to announce the availability of the mobile app for use in navigating the 2013 Education Conference & Exposition, June 19-22 in San Diego.
The app, available for Apple and Android smartphones and tablets, offers a conference dashboard, scheduling functionality, event overviews and more.
Visit the conference website for downloading instructions.
Deadline Extended: 2013 NAA Survey of Income & Expenses in Rental Apartment Communities
Some of the most valuable information your staff needs when preparing for the upcoming budget season is available to you for free from the National Apartment Association.
By your Company’s participation in the 2013 NAA Survey of Income & Expenses in Rental Apartment Communities, you will receive a free copy of detailed market and national economic analysis this fall that will help ensure valuable, accurate financial and benchmarking information for your company. This data helps you to compare your community’s performance against your peers.
There are several methods for your Company to complete the survey including using our designated Excel file to download data directly from your internal data systems or using our secure survey website. You can download a pdf version for reference to the questions and definitions.
If your (ownership or management) Company has multiple properties, please contact Janet Gora of CEL to determine the best response method for your company (Excel or Online). Janet can be reached at 310/207-7328. If you need an Access Code, contact NAA’s Valerie Sterns at 703/797-0624. The deadline to complete the survey is May 17.
Deadline Extended: Participate in Apartment Compensation Survey
The nation’s largest, most widely used, referenced and recognized compensation resource for the real estate industry how includes NAA as its partner. CEL & Associates welcomes NAA in conducting the National Apartment Compensation and Benefits Survey. This is an overall Company/Corporate-level survey, and is completed by the Human Resources department or CFO/COO offices for your firm.
In its 24th year, the national survey encompasses compensation trends, benefits, compensation policy questions, long-term incentive compensation structures, and detailed information/statistical (quartile) breakout of compensation results on a position by position basis stratified by Company Size (employees), Company Type (public and private), Specialization, Region, and Metropolitan Area.
Companies wishing to participate can complete the survey on our secure survey website. In addition to the general company-level questions online, a designated Excel file is available to download individual salary/bonus data from your HRIS or other internal database. The survey results will be available in early August. Companies participating in the survey receive a complimentary copy of the results. For further information, contact CEL’s Janet Gora via email or at 310/207-7328. The deadline to complete the survey is May 17.
Finalists Announced for the 2013 NAA Maintenance Mania® National Championship
Throughout the year and across the country, NAA affiliates host Maintenance Mania events—a national program offered by NAA and presented by HD Supply—to recognize maintenance technicians with awards, prizes and bragging rights. Winners from each local event have an opportunity to qualify for a spot at the National Championship on Thursday, June 20, from 5 p.m. to 6:15 p.m. in conjunction with the 2013 NAA Education Conference & Exposition in San Diego.
This year’s 20 finalists have been announced, with qualifying times ranging between 1 minute, 50 seconds and 1 minute, 55 seconds. That’s less than two minutes to complete eight maintenance-focused challenges that test competitors’ skills and knowledge of the industry as they competed for the national title and $7,000 in prizes.
Read more about Maintenance Mania and view all the finalists.
NEW DATES! Upcoming IROP Webinar
Registration is open for the IROP webinar series! Remember, if you promote these courses, you will receive a revenue share of $50 for individuals in your area who sign up!
This Webinar series will begin on Tuesday May 21, 2013 and will run every Tuesday through June 11. All Webinars will be held from 2 p.m. to 5 p.m. ET and includes time for Q&A.
Registration fee: $349 for members or $499 for non-members. Module prices are $99 for members or $125 for non-members.
Group pricing is available for 10 students or more, contact NAA's Shana Treger.
Don't wait, register today!
Join NAAEI, Apartment All Stars and Multifamily Insiders for Webinar Wednesdays
Webinar Wednesdays is the largest premium webinar series in the industry to provide state and local association members with access to industry thought leaders to discuss innovative ideas, best practices and emerging industry trends. These webinars will give participants the tools they need to become industry superstars in their own right.
Help, my rents keep changing and I don't know what to do!
Wednesday, May 22, 2013 2 p.m. ET
UPsizing Your Marketing to the Downsizing, Active, Independent Senior
Wednesday, June 5, 2013 2 p.m. ET
Learn more about Webinar Wednesdays.
Is Your Company Military Friendly With Job Openings Across the US?
Exhibit at the 2013 NAAEI Military Career Fair in San Diego and fill those open positions with veterans, military spouses and transitioning military members who are looking for a career “back home”.
When: Wednesday, June 19, 2013
Time: 9 a.m. to 3 p.m.
Where: San Diego Convention Center
Register for a booth at the Apartment Careers website.
For more information, contact Vicki Sharp at 512/550-2021.
NAAEI Designation Courses Offered Near You!
Greater Charlotte Apartment Association
Nevada State Apartment Association
Roanoke Valley Apartment Association
San Antonio Apartment Association
June - August, 2013
Chicagoland Apartment Association
July - August, 2013
Central Iowa Apartment Alliance
September - October, 2013
Greater Charlotte Apartment Association
October - November, 2013
Apartment Association of Greater Los Angeles
November - December, 2013
Nevada State Apartment Association
Roanoke Valley Apartment Association
Greater Charlotte Apartment Association
Roanoke Valley Apartment Association
Find more courses in your area on the NAA website.
For more information about any of the classes listed, please contact Kimberly McCrossen at 703/518-6141 ext. 121.
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