condo units: Basic Ed for Multifamily Borrowers
- 06/24/09 09:30 AM
In looking over the "Affordable Housing Finance" magazine, I was struck by the very informative article By Jerry Ascierto. He points out “Acronyms like TARP, TALF, PPIP, and CAP litter today’s headlines, but exactly what these programs do-and how they do it-isn’t always easily digestible”. TARP and TALF - what are they? According to "Apartment Finance Today" says Ascierto, “TARP is aimed at the institutional level-shoring up a financial institution’s health with an infusion of capital, for instance-while TALF is aimed more at the loan-level and charged with reviving the CMBS market.” While “TALF is a loan program for CMBS investors”, … (0 comments)
condo units: Apartment Living of the Future
- 06/23/09 07:04 AM
Christopher Lee, a real estate consultant with CEL & Associates, is a featured panelist at the 2009 NAA Education Conference & Exposition this week. The National Apartment Association (NAA) website features his white paper on the future of apartment living which I thought particularly pertinent for these times. Lee states the future of apartment living is bright because of several factors - the housing crisis, Gen Y’s appeal, Hispanics and the aging population. The following is an excerpt from Lee’s paper: “The Housing Crisis Solution It is more than a remote possibility that the U.S. homeownership rate (currently 67.5 percent) could … (0 comments)
condo units: Credential Courses for Green Property Management
- 06/23/09 06:28 AM
With “green” being the operative word these days, I couldn’t help but notice the interesting courses listed by the National Apartment Association (NAA) on their site. In addition to the NEW Credential for Green Property Management (CGPM), the site explains such programs as the Fair Housing and Beyond Course, the Rental Owners Course (ROC) and the National Affordable Housing Management Association’s Specialist in Housing Credit Management® (SHCM®) programs. You can take these courses at local apartment associations or online. They are formatted for owners and management company executives, as well as: * Property and onsite managers * Leasing professionals … (0 comments)
condo units: Multifamily -State of the Industry
- 06/21/09 12:47 PM
Recently, at the Pacific Coast Builders Conference (PCBC), multifamily finance and operation fundamentals were discussed in depth. Chris Wood reported details in the Multifamily Executive on 6-16-09. In the opening session of the 2009 MultifamilyTrends Conference held in conjunction with the PCBC in San Francisco, Hessam Nadji, Managing Director of research services for Encino, CA-based Marcus and Millichap, illustrated an image from the Friday the 13th films. In other words, it’s scary. “Capital markets are definitely still scary and characterized best by illiquidity,” agreed Matthew Anderson who is a partner with Oakland, CA-based Foresight Analytics. “We definitely expect trouble ahead,” Anderson … (0 comments)
condo units: A $60 Million Garage?
- 06/21/09 12:01 PM
While reading over an April issue of the San Francisco Business Times, an article by J.K. Dineen and Blanca Torres caught my eye. The largest commercial real estate deal had just been executed by Menlo Park-based Garlock & Co. A shopping center, industrial park, you say? No, actually, a garage. This parking garage at 225 12th St. in San Francisco’s Civic Center area “has 875 spaces and is the largest private garage in the city”, says William Garlock. “This garage would cost $60 million to replace.” He bought it at a cool $14 million. Garlock plans to convert it to a … (0 comments)
condo units: Virtual Realtors
- 06/11/09 08:35 AM
In reading Stewart Penn's recent blog in Activerain.com on virtual real estate offices, I have to agree he makes a good point. Penn, a Los Angeles Condo Specialist, after years of being with nationally-branded real estate offices, weighed the advantages. Realizing that not only was his time was much better spent in Open Houses getting to know other real estate agents, but also that he really wasn’t getting many leads, nor were his clients getting extra benefits from the traditional real estate office. With that, he struck out on his own and has not looked back. Websites such as Activerain.com provide … (0 comments)
condo units: Environmental Risks for Commercial Property Owners
- 06/07/09 01:33 PM
John J. Heft, Vice President, New Day Underwriting Managers, LLC writes a compelling article on Environmental Liabilities in the December issue of Multi-Housing News (MHN) real estate magazine. Because of exclusions for mold in general liability policies, sizeable uncovered claims can wreck financial havoc for apartment owners if complaints to these problems are not tended to properly. A leaking kitchen sink, for example, caused discoloration in the bedroom ceiling in the apartment below. The apartment complex owners merely did cosmetic patchwork, despite repeated complaints by tenants, who subsequently became ill, sued and won 1.4 million dollars in personal injuries. Mold, microbial … (0 comments)
condo units: Real Estate Survey
- 05/24/09 12:52 PM
LoopNet recently conducted an online poll I wanted to share with you. The poll was entitled, When will Commercial Real Estate Bounce Back? On the first question, “When do you expect the number of completed commercial real estate transaction sales to begin to pick up vs. 2008?” 42% responded 2010, and 25%, 2011 or later. Question #2, What do you view as the biggest obstacle to commercial real estate sale transactions getting completed? 46% responded with “access to financing”, while 29% said “uncertainty of economic forecasts”. #3. How much further will prices need to fall vs. 2008 in order for transaction … (0 comments)
condo units: Apartment Owner’s Best Friend
- 05/24/09 10:33 AM
There are more good reasons to have pets in apartments than bad ones, writes Karen Aho, of MSN Real Estate, in the 5-5-09 issue of the National Apartment Association’s Industry Insider. She goes on to say that apartment owners should advertise their apartments as “pet friendly” instead of offering free rent, wireless or free TV as incentives. Statistics show that “pet-friendly apartments rented in 19 days versus 29 days for non-pet apartments”. Fred Thompson, president of the National Association of Residential Property Managers, a trade group, cites if soiled carpeting is your reason for not renting to someone with a pet, … (0 comments)
condo units: Appraisal System
- 05/24/09 10:00 AM
Kenneth R. Harney in the 5/11/09 Washington Report writes an interesting warning to homebuyers and real estate professionals. Consumers will be experiencing higher costs thanks to the mandatory new appraisal system just put in place by Freddy Mac and Fannie Mae. With major lenders owning most of the management companies conducting the appraisal assignments, appraisers themselves will be paid less while the consumer realizes a 30 to 50% add-on fee. Critical of the new “home valuation code” are both the National Association of Realtors and The Appraisal Institute. Homebuyers and real estate professionals need to be aware of these sharply rising … (0 comments)
condo units: Economic Outlook
- 05/13/09 04:40 AM
Just last week, Chairman Ben S. Bernanke appeared before the Joint Economic Committee of the US Congress to offer his views on recent economic developments along with the outlook for the economy and current conditions in financial markets. It’s no surprise that the gross domestic product (GDP) dropped 6% in the 4th quarter of 2008, continuing in the 1st quarter of this year. Along with this cut was the loss of some 5 million payroll jobs. Ongoing claims for unemployment forecast probable further unemployment in coming months. The somewhat good news is that the declining housing market has shown some signs … (0 comments)
condo units: The America that Got Left Behind
- 04/27/09 02:53 PM
While not all about commercial real estate, I wanted to share an eye-opening video can be seen on the April 17th podcast of Bill Moyer’s interview with David Simon. Simon went from crime beat reporter for the BALTIMORE SUN to award-winning screenwriter of HBO's critically-acclaimed “The Wire”. He talks with Bill Moyers about inner-city crime and politics, storytelling and the future of journalism today. He compares drug war participants with Enron and other financial scandals of our current times. David Simon and his creative team investigated urban corruption and betrayal, in ”Homicide – Terror on the Street”, showing how everything is … (0 comments)
condo units: The Economic Crisis in Four Questions
- 04/19/09 03:24 PM
The Internet Media Works provided the speech given by Chairman Ben S. Bernanke at the Morehouse College in Atlanta, Georgia this April 14th. I was struck by the dismal, yet encouraging prospects presented. He cites today’s ongoing turmoil in the financial markets consequenting the global market recession, resulting in the worse financial crisis since the Great Depression. Difficult words to hear, I know. Still, Bernanke is “fundamentally optimistic about our economy”. These constraints on the flow of credit have resulted, among other things, job losses at ½ billion per month. With construction projects cancelled and factories shut, families are faced with … (0 comments)
condo units: Cost Cutting in Extreme Times
- 04/19/09 04:13 AM
Don’t overact. Instead, look over the 4 key areas of apartment ownership: 1. Curb Appeal 2. Turning Apartments 3. Marketing 4. Training Curb Appeal. Make sure your apartment complex is attractive and appealing to passersby. Inexpensive flowers planted by the entrances give immediate punch. Keep the lawns and sidewalks maintained and clean. Turning Apartments. Rather than wait until you have a new lease signed to get an apartment ready, make sure you have plenty of apartments ready for move-in should a prospective renter need one right away. Prospective renters are suspicious if all they can view is the model apartment…they want … (0 comments)
condo units: Request a Filing Extension to Maximize Your Exchange Period
- 04/10/09 03:39 PM
In an article from the 4-1-09 issue of The Exchange from The Chicago Deferred Exchange Company (CDEC), I read where if you have sold property in a Section 1032 exchange and have not yet bought replacement property, best to file an extension for your tax return. If you are in the middle of such an exchange, go over the facts with your tax preparer. For more information, click here or go to http://campaign.constantcontact.com/render?v=001aqj1QInodGQtPjJycAkXeo15s76YD3_pzA28Iwm8r_9u4FT9am47AWwRiZhrmZAvVJOspCVbra0fBduJtKOLxU6cAInvHZaK8EsTqgMAdqW1oWOm8cZgN0kBtwCAyuyA_ziT4hZwqIoUQp-WNdLnAIfiLQ2Fp1wQC0_my6f7ltaCB6b4EMLifS09iEt3y5kIUM_7c-DuUKFGiEfN241e4CIghq0IhW4O9FBi8XGNQQDlLEUAI5f7yVhrBSx11XTT18O-aE77Rdg%3D Please contact me at Pete@ConsultPete.com or 925-719-3569 if I can be of assistance. To learn more about my background, visit Consult Pete. To learn more about my company … (0 comments)
condo units: Waste Not - Owners Save with Water-efficient Retrofits
- 03/20/09 03:47 PM
In reading through the Multifamily Executive Magazine, March 1, 2009 edition, I spotted an article by Jennifer Popovec that caught my eye. It’s a great article highlighting everything from low-flow showerheads, water-efficient fixtures in the kitchens and bathrooms to touchless and trough faucets. As any multi-family owner or manager knows, it is becoming more and more difficult to preserve rents and maintain net operating income. Still, they also need to be even more diligent about finding ways to reduce costs. Certainly the area of water is one way – an a big one at that – to reduce overhead costs, which, … (1 comments)
condo units: Fair Pay!
- 02/03/09 05:19 PM
With the recent signing of the Lily Ledbetter Fair Pay Act by President Obama, apartment owners, along with other employers, would do well to review not only their pay structures, but also all administration and policies to ensure that any inequities are corrected and comply with the new law. The Fair Pay Act allows employees to sue their employers for wage discrimination without mandates on time for filing. The new law also prohibits unequal pay because of gender, except in the case of seniority or other job-related factors. In light of Washington's changed politics, smart employers will use this action to … (0 comments)
condo units: Appealing to Gen Y Renters
- 02/03/09 04:51 PM
Here's a living concept whose time has come...the Generation Y demographic. Upwardly mobile, recent college grads want amenities and necessities such as game rooms, computer labs, coffee bars, fitness rooms, and laundry facilities. Catering almost exclusively to these residents, developers are blending together in great room concepts where students could live, work, and most importantly, socialize. This has all been accomplished by a Columbus, Ohio-based developer, owner, and operator of 4,000 apartment and condo units across eight Ohio and Kentucky properties. At another project by Lifestyles Communities, residents enjoy a similar situation with the additions of on-site pools, fitness centers, restaurants, bars, and planned … (0 comments)
In looking over the "Affordable Housing Finance" magazine, I was struck by the very informative article By Jerry Ascierto. He points out “Acronyms like TARP, TALF, PPIP, and CAP litter today’s headlines, but exactly what these programs do-and how they do it-isn’t always easily digestible”.;)
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