Housing Starts Fell in April Due to Multifamily
Digested From "Housing Starts Fell in April; Permits Are Up"
Washington Post (05/17/13) P. A12 Jayakumar, Amrita
Home building fell in April to a seasonally adjusted rate of 853,000 units, the lowest level in five months, according to the Commerce Department. Most of the decline took place in multifamily home construction, which includes apartments and condominiums. Housing starts were down 16.5 percent from March, when builders broke ground on more than 1 million homes -- the most since June 2008. The data also reveals that applications for building permits in April soared to the highest level in five years, which suggests construction will pick up in June.
Market Trend Insights
Lehman Keeps Apartment Sector Guessing
Digested From "Lehman Keeps Apartment Sector Guessing"
Wall Street Journal (05/15/13) P. C6 Wotapka, Dawn
Earlier in the year, the estate of Lehman Brothers Holdings Inc. sold apartment-building owner Archstone to rivals Equity Residential and AvalonBay Communities Inc. Under terms of the deal, Lehman got about 10 percent ownership interests in the two firms, currently valued at about $4 billion, which it was required to hold for at least 150 days. Now, it is unclear what Lehman plans to do with them, as the company is not giving any clues. Lehman does not face any specific deadline for unwinding its assets as it strives to maximize the return to its creditors following its bankruptcy and sale of Archstone. While shares of Equity Residential and AvalonBay are underperforming some other REITs, they are still trading near record highs. If Lehman floods the market by selling its holdings too quickly, it could weigh on the stocks. However, some analysts suggest Lehman could opt for a public offering that would be more orderly than dumping shares on the market.
Three Groups Are Propelling Norwalk's Apartment Sector
Digested From "Gen Y and Boomers Are Fueling the Norwalk Rental Market"
Connecticut Post (CT) (05/17/13)
The rental housing market in Norwalk, Conn., continues to heat up. Three demographic groups personify the new urban renter locally -- Generation Y executives, empty nesters, and young families. Among them is Javaid Siddiqui, an information technology manager for Dunkin’ Donuts, who leases a downtown apartment with his wife. He states, "It's an awesome place to live. We eat at the local restaurants on weekends, and it's a five-minute walk for my wife to get to her job as a pharmacy technician." Michael Church, a rental specialist with William Pitt Sotheby's International Realty, observes that there is only a 1.5-month inventory of rental units in Norwalk at an average monthly rent of $1,700. Church remarks, "We're continuing to see record low vacancy rates, and area banks are only interested in financing rental developments." Belpointe Real Estate has secured financing for a 774-unit apartment community for a project that will also include more than 90,000 square feet of retail space in its first two phases. Construction is also underway at The Spinnaker Companies' mixed-use development, where they will be building 107 apartments, along with 17,500 square feet of retail stores and 3,200 square feet of restaurant space. According to a recent National Association of Realtors (NAR) study, 47 percent of today's households want urban living.
Which Kansas Market is Tops for Class A Apartments?
Digested From "Multifamily Apartment Construction in Wichita Area Continues Amid Investor Eagerness"
Wichita Eagle (KS) (05/15/13) Siebenmark, Jerry
While the single-family housing market in Wichita continues to show improvement, bullishness for Class A apartments has not waned. Developers and local real estate officials said the market for new multifamily developments is capable of absorbing the more than 700 additional rental units planned or under construction across the region. And investors are clamoring to acquire additional pieces of the apartment sector. Industry experts say it has been well over a decade since there was a significant addition of Class A apartments in the area. According to Jeff Englert, a commercial real estate advisor for NAI Martens, the city and its suburbs could probably absorb nearly three times the number of units expected to become available later this summer and into 2014. Englert said demand for investment in well-maintained apartment communities remains strong. At the moment, though, few owners want to sell due to high occupancy.
What's the Main Reason for Houston's Booming Apartment Market?
Digested From "New Apartment Construction Still Chasing Demand"
KUHF 88.7 Houston (05/17/13) Schnieder, Andrew
Houston's rapid job growth is turning the region into a magnet for workers from all over the nation, giving a huge boost to the city's rental apartment sector. "We are actually the number one destination for U-Haul trailers in America right now, which just shows how many people are moving to our city," said Trey Stone, president-elect of the Houston Apartment Association. "There is rapid construction underway to meet all of this demand." Indeed, there are about 15,000 units that are currently under construction in the metro area, another 15,000 that are now in the proposal stage. The influx of new residents has pushed occupancy rates to more than 90 percent -- the highest in five years.
Deals and Transactions
The Lincoln Could Free Downtown Raleigh's Apartment Market
Digested From "Downtown Raleigh's Redevelopment Spreads East With Apartment Project"
News Observer (NC) (05/13/13) Bracken, David
The ongoing revitalization of downtown Raleigh has reignited a long-dormant apartment development near Moore Square that could transform an area largely overlooked by developers. The property once spurred a debate over affordable housing, only to later become a glaring symbol of the real estate bust after its owner went bankrupt. Called the Lincoln, the latest version of the proposed community would drop a 321-space parking deck and hundreds of market-rate apartments into a largely residential area that, until now, has not experienced such large-scale investment. The Florian Companies of Raleigh, which is one of three firms partnering to develop the project, expects to close on the land by the end of this summer. The Lincoln will likely restart the debate over how best to redevelop the areas east of downtown without pushing out the lower-income residents who have traditionally called it home. According to the Triangle Apartment Association, there are currently 1,202 apartments under construction in Raleigh's downtown and more than 1,500 other rental units proposed. While those numbers will likely raise concerns about whether supply will eventually outstrip demand, the Florian Companies believe downtown is in the early stages of an extended rebirth.
Multifamily Lender Centerline OKs Takeover Talks With Hunt
Digested From "Centerline Talks Possible Takeover by Hunt"
GlobeSt.com (05/15/13) Bubny, Paul
Centerline Holding Co.'s board of trustees has authorized takeover negotiations to begin with Hunt Capital Partners LLC. The multifamily housing lender and investor states that its board is negotiating with Denver-based Hunt "with the goal of maximizing shareholder value." Last month, The Hunt Cos. affiliate acquired 978,274 common shares of Centerline's stock from Island Capital Group for $39 million in cash. The acquisition represented more than 40 percent of the common shares outstanding. In addition, it prompted the implementation of a shareholder rights plan.
Four Tips to Navigate the Spring Rental Season
Digested From "Tips to Navigate the Spring Rental Season"
NY1 News (05/17/13) Urban, Jill
This spring's hot rental housing market has its own set of challenges. As a result, apartment hunters may have to sacrifice more than just a hefty deposit. Citi Habitats President Gary Malin comments, "May through August time frame is the busiest it's ever gonna be, it's what we call our busy season. It's people who are graduating from college, grad school. People's leases are coming up from a year or two earlier so there is an increased demand during these four months." Malin offers four tips to help apartment seekers secure the unit they want. First, the competition is so fierce, "don't even look if you are not prepared to sign a lease immediately." Second, if you find something you love that you can afford, "don't be afraid to pay more than is being asked for. That will put you at the front of the line and most likely secure you that apartment." Third, Malin suggests offering to pay some of the rent up front in an effort to stand out from other applicants. Finally, for those whose leases are coming up now, you may want to try and extend it to come out at a less busy time of year. According to Malin, "you may find that prices are more in your favor and there could be more inventory then."
Tips on Dealing With Noisy Neighbors
Digested From "Tips on Dealing With Noisy Neighbors"
San Diego Union Tribune (05/20/13) Pentico, Alan
Apartment owners and managers should offer tips and advice to residents on how to deal with noisy neighbors. While noise ordinance laws do exist in most municipalites, they were not designed to make sure residents never hear their neighbors. According to Alan Pentico, executive director of the San Diego County Apartment Association, "they are standards put in place to allow people to make acceptable amounts of noise." The general rule of thumb is that if the noise is loud enough to keep a reasonable person awake, then it is probably not legal. For those who live in apartments, the odds are good that there is lanugage in each lease agreement that covers "house rules," which usually include something like: "Quiet Enjoyment: Resident shall not commit nor allow to be committed any nuisance or other act that may disturb the quiet enjoyment of any other resident at the community." The age-old question is: "Should you talk to your neighbor before calling your landlord or the police?" Pentico answers, "Not necessarily. Trust your instincts and what you know, or don't know, about your neighbor. Property managers and police officers can put an end to a rowdy party without telling anyone who called in the complaint."
Who Is This College Offering Apts. to? Hint: It's Not Students
Digested From "College Complex Offers Housing"
Minot Daily News (ND) (05/16/13) Johnson, Andrea
In North Dakota, a 74-unit apartment community for Williston State College faculty, staff, and project partner employees will open for occupancy Aug. 1 on campus. The buildng will also boast approximately 7,500 square feet of first-floor retail space. The $8.5 million development is a venture of the Williston State College Foundation, which received some of its funding from the North Dakota Housing Incentive Fund. Additional investments came from the foundation and its partners Bethel Lutheran Foundation, Williston State College, and a loan from partner American State Bank and Trust. Terry Olson, executive director of the Williston State College Foundation, states, "It may seem a bit unorthodox [housing for employees and not students], but there was a need and we had to try and meet it. Being able to recruit and retain a workforce is vital to our community growth and well-being; making housing available and affordable is one way to do that." Monthly rent for the one- to three-bedroom units will range from $1,100 to $1,500. Studio apartments will rent for $700 a month.
How to Live the Big Life in a Micro Apartment
Digested From "A Proposal to Make the Micro Apartment a Little More Livable"
The Atlantic Cities (05/13/13) Badger, Emily
Micro apartments appear to be the perfect affordable housing solution for young professionals and moderate-income residents in high-cost cities like New York. But often the reality of living in 400 square feet of space means no room for entertaining friends. One model attempting to address the problem creates shared common space, like a lounge in the basement. However, Northeastern University student Chris Marciano says those spaces are not useful, which is why he and some classmates have created shared living spaces between micro apartments. He says, "You offer these little pockets in between units, and then it becomes useful." The model is somewhere between a multi-bedroom apartment, a studio, and a dormitory -- "a housing typology that doesn't really exist." The model has 419-square-foot apartments paired around a reconfigurable social space for dining or entertaining, and each unit has its own private entrance, a bathroom, a kitchenette, and a small balcony. The walls around the shared space can be reconfigured to create a seamless outdoor space, an expanded balcony for one unit, or a private living room for the other. This idea could tap into the appetite of Millennials interested in sharing.
Legal/Legislative Did You Know
Why Are San Antonio Apartments Flunking Fire Inspections?
Digested From "Investigation Finds SA Apartments Flunking Fire Inspections"
WOAI.com (San Antonio) (05/15/13) Avila, Jaie
An investigation by the Trouble Shooters team at WOAI-TV found that San Antonio apartment communities fail their fire inspections more than half of the time. Of the 1,622 random fire inspections conducted since the program began in January 2012, 887 units failed -- a failure rate of more than 54 percent. Division Chief Matt Jimenez, who runs the inspection program, admits that he is disappointed with the results. However, he noted that inspectors did not have to issue any citations because all apartment communities fixed their violations within a two-week period. The fire department started the program to ensure local apartment owners and managers were complying with the city's fire code, which was strengthened in 2010. The San Antonio Apartment Association has been educating its members about fire safety since the changes were passed. The fire department says apartment fire safety is of such pressing importance that it will soon be pulling fire crews out of their stations between calls to help conduct inspections. Jimenez and his colleagues are also asking apartment residents to help by reporting problems with smoke alarms or fire extinguishers to their property management.
Senators Want to Move Forward With Fannie, Freddie Reform
Digested From "Senators Want to Move Forward With Fannie Mae, Freddie Mac Reform"
The Hill (05/18/13) Needham, Vicki
As part of an revamp of the mortgage finance market, a bipartisan group of senators is pushing to largely eliminate Fannie Mae and Freddie Mac. Lawmakers and industry representatives reportedly are closing in on a broad framework that would wind down and ultimately dissolve the two government-sponsored enterprises (GSEs). The goal is to reduce the federal government's role in the housing finance market and encourage more private capital. Such a transition is expected to take a number of years. Sen. Bob Corker (R-Tenn.) states, "Obviously, we're discussing lots of options, but I don't know of anybody that's working on an option where Fannie and Freddie are what they are today." A more likely outcome would see the GSEs replaced with a new, smaller, and more contained entity -- one that would still allow government guarantees on some loans.
Less Than One Month Remains Before the Largest Industry Event of the Year—Register Now To Take Advantage of the Final Discounted Price
The 2013 NAA Education Conference & Exposition, June 19-22 in San Diego, continues getting bigger and better every year. As the annual event—widely considered to be the most important gathering in the rental housing industry—continues to grow, NAA wants to remind you of the another thing increasing in size: the price of registration.
That’s right: the investment required to attend will increase on June 6! Register before then to take advantage of up to $150 of savings on this key investment in your company and your career.
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 Education Conference website for downloading instructions.
Network, and Collaborate in the New NAA Connect
Along with the new NAA website comes NAA’s new home for discussions and networking—NAA Connect.
Take full advantage of your NAA membership and join the communities that match your interests in the industry to stay on top of the latest trends, talk about the issues with your NAA peers and problem share and problem solve through the Forum discussions. You can also browse the topical libraries for reports, sample documents, sample forms and articles that are ready for download today.
Be sure to login for full access. Not sure of your login information? Get login help.
Here’s How To Help Kids in Need During the 2013 NAA Education Conference & Exposition
With so much to see and do during the 2013 NAA Education Conference & Exposition, June 19-22 in San Diego, we’d like to take a moment and remind you of a special opportunity to help disadvantaged children through NAA’s support of the Life is good® Playmakers, a 501(3)(C) public charity which helps kids overcome poverty, violence, and illness.
“Play it Forward,” NAA’s initiative in support of the Life is good® Playmakers charity, which uses the power of play to build healing, life-changing relationships with the children in their care and have partnered with more than 3,500 frontline professionals who care for over 209,000 children each year.
Bert Jacobs, Chief Executive Optimist of Life is good®, is back this year by popular demand and will be the featured speaker during Saturday’s NAA Awards Celebration. Jacobs, whose passion for helping others is mirrored in the NAA community, has a special message about the initiative.
Not only will NAA match 20 percent of the total raised by all teams up to $5,000, the winning team (the team raising the most funds) will be invited to choose up to 10 people to share a private lunch with Jacobs on Saturday, June 22, following the conclusion of the conference. Lunch, which promises to be a memorable time, also includes a photo opportunity—not to mention the overall goodwill and philanthropy generated by participation.
Teams and individuals can decide when, how and where to fundraise using the Life is good® fundraising site.
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.
Still Time to Sign Up for the IROP Webinar Series!
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!
Nevada State Apartment Association
Roanoke Valley Apartment Association
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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