Study Reveals Shift in Attitude on Renting Vs. Owning
Digested From "Study Reveals Shift in Attitude on Renting vs. Owning"
Chicago Tribune (04/12/13) Podmolik, Mary Ellen
According to a recent Hart Research Associates and MacArthur Foundation survey, 57 percent of adults find that buying a house is less appealing, while 54 percent believe renting is more appealing. Moreover, 45 percent of homeowners say they could be renters at some point. Peter Hart, chair emeritus of Hart Research Associates, says, "The stigma of renting is no longer the case. When it comes to living the American dream, the overwhelming response (is) renting is just as appealing." And Hart Senior Vice President Rebecca Naser says, "It's not renting versus owning anymore. It's a continuum through life." Part of the shift has come from an increase in single-family rental properties, which have grown to 33.5 percent of all rental housing stock from 30.8 percent. Also improving the view of renting is the continued difficulty in getting a mortgage and the increased flexibility renting provides. Hart reported, "That is a change that is more important than anything else. You're no longer seen as a second-class citizen. 'Renting is acceptable' is where we are headed." The survey also indicated that nearly 67 percent of respondents said federal housing policy should be balanced between homeownership and renting.
Market Trend Insights
Is a Big Battle Brewing Over Micro Apartments in NY?
Digested From "'Micro' Apartments Get Big Push"
New York Post (04/08/13) Defalco, Beth
In January, New York City Mayor Michael Bloomberg selected a Brooklyn developer to build 55 micro-apartments as small as 250 square feet, which could rent for just $939 a month. At a recent event for the Citizens Housing Planning Council, the city Commissioner for Housing Prevention and Development announced that the city is looking to build another two such buildings. Joe Lhota, the GOP mayoral front-runner, said the next mayor needs to do a better job addressing the need for affordable housing in the city. "It must be acknowledged as a critical economic development strategy that will insure our competitive position in our global marketplace," Lhota said of using tax credits as an incentive for building more affordable housing. City Commissioner Matt Wambua counters, "We want to make sure this transcends as more than just an experiment, but as part of the New York City landscape."
Is the Shift in Home Rentals to Institutional Players on?
Digested From "Cheaper by the Dozen"
Wall Street Journal (04/06/13) Demos, Telis
Investing in single-family homes is becoming increasingly popular, and now Wall Street has dreamed up a new way for investors to become landlords without worrying about 3 a.m. plumbing calls or late rent payments. Over the past couple years, firms that invest in real estate have been picking up foreclosed homes for fraction of what they would have got before 2008. The companies now own tens of thousands of single-family homes, and some have begun to sell them in tiny slices to hedge funds, pension funds, and individual investors in the form of real-estate investment trusts (REITs). Some of these REITs are now going public, opening their doors to investors and joining the REITs that own apartment communities and commercial properties. "There will likely be a number of IPOs looking at this generational opportunity to shift home rental from individual landlords to institutional players," said Stephanie Ruiz, a managing director at Credit Suisse Group. Two single-family REITs have gone public, and at least two more have announced plans to do the same. But there is no guarantee that the new REITs will be able to deliver consistently high returns or income.
What is the Next Hot Urban Apartment Amenity? Closet Space!
Digested From "Closets, Please, and the Bigger the Better"
New York Times (04/07/13) Gootman, Elissa
Apartment owners say replacing older, smaller closets with large ones that can better accommodate an individual's belongings is becoming one of the more desirable amenities. This is especially true in urban markets such as New York City, where closets are increasingly being recognized as must-haves. While closets alone do not dictate real estate decisions, they can tip the scales. The typical closet is three feet by five feet, while walk-in closets are usually five feet by eight feet. In luxury apartment communities, many developers are carving out space closets that will make buyers swoon. At the more modest end of the New York City market, developers are more eager to squeeze every square inch of living spaces, sometimes cutting corners when it comes to closet space.
Deals and Transactions
Why the Jemals Are Doubling Down on D.C.-Area Apartments
Digested From "The Jemals Bet Big on Apartments"
Washington Post (04/08/13) O'Connell, Jonathan
A couple of years ago, the D.C. metro area became such an attractive market for apartments that landowners found themselves in a rush to build as many new rental units as possible. That includes Douglas Development, a private firm that has amassed a portfolio of properties totaling 8 million square feet from Richmond to Annapolis. Founded by Douglas Jemal, the company has been eager to acquire properties and sit on them as long as necessary, sometimes to the point of falling behind on property taxes and taking out unconventional loans. The firm is now one of the most aggressive players in a market that some forecasters say could cool considerably by the time some of their communities are completed. Douglas Development is not the only company to transition to apartments. Federal Realty Investment Trust is building apartments in White Flint, Md., while Hines is building approximately 458 units at CityCenterDC. With more than 31,000 units expected to be completed in the region over the next three years, the question for many developers is whether there are too many apartments in the pipeline.
Chicago Gets Secured, Master-Lease Student Housing
Digested From "Equus Sells 330-Unit Downtown Chicago Student Housing"
Commercial Property Executive (04/08/13) Loria, Keith
Private equity real estate fund manager Equus Capital Partners has sold a 330-unit student housing facility in Chicago for $58.5 million to a joint venture of Atlas Real Estate Partners; Marc Real Residential; and Angelo, Gordon and Co. Located in the heart of Chicago's South Loop, the 28-story high-rise is close to Columbia College, Roosevelt University, and a number of other schools. The 882-bed student housing community has a five-year master-lease with Columbia College for 60 percent of the beds. This helps provide a degree of stability to the property's income, which helps take some burden off of the leasing teams and makes the property "more financeable," said Greg Curci, vice president at Equus. "Not many master-lease secured student housing communities come available in the core of first-class cities like Chicago."
Which Four D.C.-Area Apt. Communities Did JLL Help Close on?
Digested From "JLL Helps Close $608M in Multifamily Sales in D.C. Region"
National Real Estate Investor (04/11/13)
Jones Lang LaSalle's (JLL's) capital markets team closed on the sales of four apartment communities in the Washington, D.C., metro area, totaling approximately $608 million. In the largest transaction, Dweck Properties bought Archstone Crystal Towers from Equity Residential for $322.25 million. The deal broke the record for the largest sale of a multifamily property in the region. WAFRA Investment Advisory Group and Stella Advisors purchased the Avalon at Decoverly in Rockville, Md., for $135 million. JBG Cos. bought Falkland Chase, in nearby Silver Spring from Home Properties for $98 million, while a joint venture of Laramar and Lubert-Adler purchased Woodvale Apartments for $53.2 million.
Houston Apartment Workers Vie for NAA Competition
Digested From "Houston Apartment Workers Compete in Timed Maintenance Events"
The Houston Apartment Association recently sponsored an event to give local apartment maintenance workers the opportunity to show off their speed and skills. The contests, which were held at Sam Houston Race Park, ranged from changing smoke alarms to fixing faucets with the grand prize being a trip to San Diego and entry into the nationwide competition sponsored by the National Apartment Association. The Houston event was capped off with a derby-car race featuring each competitor's specially-built car made from fixtures and appliance parts.
These Apartment Residents Will Be Safe at Home ... Literally
Digested From "Move in, Already! Indianapolis' Old Bush Stadium Becomes New Apartment Complex"
Yahoo! Sports (04/05/13) Brown, David
Old Bush Stadium, a former minor-league and Negro League ballpark in Indianapolis, is being repurposed into an apartment community that will welcome its first residents this summer. Dubbed Stadium Lofts, the project is the brainchild of Core Redevelopment, which specializes in saving historic structures. It will retain the outer shell of the art-deco stadium entrance and include an actual baseball field in the courtyard. Stadium Lofts is believed to be the first endeavor of its kind. The developers were able to retain other intriguing elements of the facility. The former owner's office, for instance, is being incorporated into one of the apartments. It will feature the original fireplace and restored hardwood floors. Despite the high-profile status of this re-development, monthly rents are not going to be particularly expensive. The largest units will go for around $1,300 a month, while one-bedroom apartments are expected to costs around $599 a month.
Developers Plan More Apartments in Pittsburgh's SouthSide Works
Digested From "Developers Plan More Apartments in Pittsburgh's SouthSide Works"
Commercial Property Executive (04/10/13) Pop, Adriana
A group of investors is planning to develop a 170-unit apartment building in Pittsburgh's SouthSide Works. Oxford Development and North Side-based PJ Dick have called of their plan to build a 120,000-square-foot office structure at the site and have instead partnered with Lincoln Property to develop a residential facility. Oxford Development President and CEO Steven Guy said that while interest for the commercial space was limited, apartment demand is on the rise in the area. "I think there's great demand for apartments on the South Side," Guy explained. Developer Todd Palcic is also planning to convert the former Graphic Arts building downtown into apartments. The redevelopment of the eight-story building will result in 33 to 37 residences. The repositioning of the building is Palcic's fourth residential project in the city's downtown area.
Houston Apartment Seekers Get Help From ... Realtors?!
Digested From "WAV Group to Industry: Embrace Rentals or Lose to Third Parties"
Inman News (04/03/13) Brambila, Andrea V.
A survey by the residential real estate consulting firm WAV Group Inc. found that 82 percent of the 1,196 Houston metro residents polled were renting or leasing, while the remainder wanted to rent or lease. Of those renters, 38 percent were previous homeowners. "In the industry we think of renters as one group of people and owners as another group of people, but they're actually merging into one," says WAV Group co-founder and partner Marilyn Wilson. "People are going in and out of homeownership seamlessly now." Wilson says agents should not worry about whether consumers want to buy or rent but show them whatever inventory they are interested in at the moment. The survey, conducted on behalf of the Houston Association of Realtors, found that over 50 percent of those who rent were either "very" or "extremely" satisfied working with a real estate agents -- more so than those who worked with on-site leasing representatives or apartment locators. Although agents earn lower commissions in the rental market, Wilson says they can offset the smaller checks through volume.
Legal/Legislative Did You Know
How Is a Billboard Holding Up Apartment Construction in Philly?
Digested From "Billboard Preventing High-Rise Apartment Building Construction In Old City"
CBS 3 Philadelphia (04/11/13) McDevitt, John
A billboard near the Benjamin Franklin Bridge in Philadelphia is preventing construction of a high-rise apartment building. The project came to a standstill when Keystone Outdoor Advertising Company threatened to take legal action against developer Brown/Hill over concerns that the structure could block the billboard. While the developer revised the building plans, current zoning laws do not allow for the higher, less broad building. Mark Squilla, 1st District Councilman, has introduced a bill to change the restrictions around the bill.
Why Rent Control Will Get a Vote in Next NYC Mayoral Election
Digested From "Some People Will Do Crazy Things for a Rent-Controlled Apartment in NYC"
Atlantic Cities (04/09/13) Jaffe, Eric
A recent story in the New York Post told of a woman who pretended her dead aunt was still alive for four years to keep her rent-stabilized apartment in Brooklyn, paying just $287 a month for an apartment that rents for approximately $2,200 on the open market. The incident serves as a reminder that rent-control and affordable housing are set to play a significant role in New York's mayoral election this fall. Christine Quinn, city council speaker and a leading contender to take Mayor Bloomberg's place, recently outlined a four-part housing plan that involves "the biggest commitment to middle class affordability that this city has seen in two generations. Quinn wants to create 40,000 middle-income apartments over a ten year period, and implement "permanent affordability" laws. While Bloomberg put forth a grand plan for affordable housing, a recent report found that two-thirds of these new units remain too expensive for local residents.
Three Reasons Why New Apt. Tax Break in Baltimore Is Needed
Digested From "City Council Approves Tax Break for New Apartments"
Baltimore Sun (04/08/13) Wells, Carrie
Developers converting older office buildings into apartments or building new complexes could get a substantial tax break under a measure the Baltimore City Council approved last week. The legislation aims to address three things: a glut of vacancies in office buildings downtown, the encouragement of new or converted apartments in at least six neighborhoods. and the ongoing drive to draw more new residents to the city. To qualify for the tax break, a development must be in one of the areas, it must be a project including at least 50 units, and it must have an environmentally friendly certification. The tax break would be applied to whatever value is added to the property as a result of the project. Areas eligible for the incentive are portions of downtown, Reservoir Hill, Jonestown, Poppleton, and the York Road, Belair Road and West Cold Spring Lane corridors. Mary Pat Clarke was the only member of the City Council to vote against the measure. She said that while she liked that some of the money could benefit neighborhoods outside downtown, the 15-year period for the break is "ridiculous" when the city is struggling to pay for basic services.
Boston's Strength Not to be Forgotten
Our deepest sympathies and thoughts and prayers go out to the incredible people of Boston, as well as the participants and spectators and their families who were involved in the Patriots Day celebration and the Boston Marathon. As the entire nation sadly reflects on the needless violence that occurred, NAA is reminded of the strength of that amazing city and its citizens. As host of last year's NAA Education Conference & Exposition, NAA members experienced first-hand the incredile vibrancy and strength of that great city, including its local apartment association--the Rental Housing Association of Greater Boston.
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 April 26.
Participate in Apartment Compensation Survey: And Get a Free Copy
NAA has partnered with CEL & Associates to conduct the National Apartment Compensation and Benefits Survey, the nation’s largest, most widely used, referenced and recognized compensation resource for the real estate industry. 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 < ahref="https://compsurvey.celassociates.com/Home/Login.aspx?ReturnUrl=%2f">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 April 26.
Investment Alert: 2013 NAA Education Conference & Exposition Attendee Rates Increase After This Friday
The 2013 NAA Education Conference & Exposition, June 19-22 in San Diego, is well known to be a tremendous value for any rental housing professional. Nowhere else can you find world-class education (including world-renowned innovators and apartment industry thought leaders) first-rate networking (including such events as the Opening Party: NAA Rocks The Block spanning two full blocks of the famed Gaslamp Quarter) and the latest from service partners (in the space the size of four football fields) for such a small investment.
Saavy consumers never pay retail, which is why NAA would like to remind you that Friday, April 19 is your last chance to save up to $275 on registration. Visit the conference website before it’s too late!
Join the Mobile Revolution at the 2013 NAA Education Conference & Exposition
With so many organizations and their employees wading through the paradigm shift brought about by mobile technology, Chuck Martin, digital pioneer and CEO of the Mobile Future Institute, will explore the ways in which this digital revolution is affecting the multifamily housing industry during the 2013 NAA Education Conference & Exposition, June 19-22 in San Diego.
Join Martin on Thursday, June 20, at 10:45 a.m. to hear key insights into the business implications of a world gone mobile. His special brand of research—focusing on how marketers can most effectively reach users in this digital landscape—is sure to resonate with multifamily professionals in the audience. Want to know more? Read an exclusive interview with Martin in the April issue of units.
The mobile revolution also extends to NAA’s free offering to attendees: the myNAAPlanner. Plan your time and set up appointments in advance to help make the most of the conference experience. See who is attending, explore programming and speakers, and make one-on-one appointments with exhibitors and other attendees.
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!
Is Your Company Military Friendly With Job Openings Across the US?
Register for the 2013 NAA Education Institute Military Career Fair, featuring up to 1,000 veterans, military spouses and transitioning military members.
WHY HIRE MILITARY VETERANS? THEY ARE:
• Team players who are prepared to accomplish company goals
• Quick learners who have technical skills gained through extensive training
• Experienced global travelers who understand and
respect other cultures
• Tested leaders responsible for lives, budgets and multi-million dollar equipment
Sign up 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
East Bay Rental Housing Association
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
Apartment and Office Building Association of Metropolitan Washington
Greater Charlotte Apartment Association
Roanoke Valley Apartment Association
To find more courses in your area, click here.
For more information about any of the classes listed, please contact Kimberly McCrossen at email@example.com or 703/518-6141 ext. 121.
Abstract News © Copyright 2013 INFORMATION, INC.