apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: 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)
apartment owners: Sign of the Times - Sale of an Iconic Building
- 04/03/09 04:53 PM
Sign of the Times - Sale of an Iconic Building earlier this week in the 4-1-09 issue of the National Real Estate Investor, I spied this article by Sibley Fleming. Trying to keep a positive view of today’s downward economic spiral especially in our beloved commercial real estate market, can be daunting at best. The tallest and albeit the most famous building in Boston - John Hancock Tower - was sold at a foreclosure auction in NYC. The $660.6 million purchase price was half of the purchase price paid 3 years ago. This also included a parking garage with 2,013 parking … (0 comments)
apartment owners: Multi-family Defaults Triple
- 03/20/09 10:10 AM
Just saw an interesting article written by Jerry Ascierti on the HousingFinance.com website The highest default ratio ever in the market, double the high last year, will triple this year on commercial mortgage-backed securities (CMBS). Roughly, 40% of these defaults are multi-family loans even though multifamily loans are only 30% of the CMBS industry. A lot of these are actually smaller properties with the borrowers not as experienced and generally single-property owners. The worst hit states are Florida, Michigan, Arizona, Nevada, and California. These are the same states that are having the moist trouble with single-family loans as well. To read … (0 comments)
apartment owners: East Bay Green Building Resources
- 03/01/09 04:10 PM
While I was on the East Bay Economic Development Alliance's website, I ran across a useful list of links for Green Building information in the East Bay. Thought I'd share it here: Alameda County Green Business Program Website: http://www.greenbiz.ca.gov Alameda County Revolving Loan Fund Website: http://www.StopWaste.Org City of Berkeley Website: http://www.cityofberkeley.info/sustainable Contra Costa County Green Business Program Website: http://www.greenbiz.ca.gov Contra Costa County Recycling Market Development Website: http://www.co.contra-costa.ca.us/depart/cd/recycle Green Chamber of Commerce Website: http://www.greenchamberofcommerce.net Mills College Website: http://www.mills.edu Oakland-Berkeley Recycling Market Development Zone Website: http://www.business2oakland.com/main/recyclingmarketdevelopmentzone.htm Southern Alameda County Recycling Market Development Zone Website: http://www.ciwmb.ca.gov/rmdzs/SoAlameda StopWaste Partnership Website: … (0 comments)
apartment owners: Going Green: Optional or Mandatory?
- 03/01/09 04:06 PM
An interesting article recently appeared on the newly created National Apartment Association's (NAA) green web site www.naahq.org/green that shows how implementing environmentally conscious practices may well become a necessity for the apartment industry. Since 2007, local, state and federal levels of government have mandated environmental regulations specifically affecting the multifamily housing industry. The American Climate Security Act of 2007, also known as the Lieberman-Warner Climate Bill, is currently being considered at the federal level and puts an aggressive cap on greenhouse gas emissions. This cap would then be reduced by 2% each year until 2050. Any organization exceeding its allotted limit would … (0 comments)
apartment owners: Green Building and the Recession
- 03/01/09 03:58 PM
With green legislation on the horizon, a Dec 2, 2008 article written by Matt Hudgins for the National Real Estate Investor caught my eye. Slower returns on investment and serious credit shortages are challenges for both developers and multi-family housing property owners, especially those hoping to effect energy-efficient property upgrades this year. Along with conventional commercial real estate projects, green development has suffered from the credit crunch. With lenders not interested in discussing new loan applications since early November of last year, funding for projects had nearly disappeared. That said, Ezra Green, Chairman and CEO of Clear Skies Solar, believes the … (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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