Thursday, October 30, 2008
Marcia Upton, President of Banker's Mutual reported today that reasonable interest rates ranging from 5.97% to 7% are still available depending on the loan program and things such as loan to value ratio.
Wednesday, October 29, 2008
Among the sessions:
Green Features Will Soon Be a Given at Multifamily Properties
Broken Condo Projects Spell Opportunity for Equity-Backed Investors
Small Upgrades Can Drive Up Rents
Also at this year's conference a major national apartment brokerage firm reported its business is off 45 percent for the year and it expects even steeper declines in 2009. The company said traditional 5-10% gaps in seller/buyer expectations had widened to 25%. Starts of multifamily buildings of five units or more have dropped 25%, which is expected to help increase the value of existing apartment investments as demand continues to grow.
Thursday, October 23, 2008
He reported that although there is significant interest in multifamily investment, 2008 sales through September have fallen far below 2007 levels. CAP rates for 1970’s era properties are in the 6.5% to 7.0% range with newer properties selling in the 5.50% to 6.5% CAP rate range, with institutional grade Class A properties ranging from 4.5% to 5.5%.
Current apartment projects are under construction in Clackamas, the Sunset Corridor, and in Tigard. In downtown/close-in Portland, there are 10 apartments under construction or in lease-up, nearly all of them luxury apartments that will face extreme competition for tenants in the next 1-3 years during lease-up.
Download Jeremy’s full report by clicking here.
2) Driver's License
3) Social Security Card
4) Work Visa
5) ID from a sponsoring nonprofit
If you don't have a written policy that you and/or your leasing staff are following or would like to have yours reviewed, I can certainly help you with that and answer any questions you might have.
Andy Hahs is a partner of Bittner & Hahs, P.C. in Lake Oswego and has been practicing law for over 25 years. Andy is one of the leading authorities on Oregon's landlord-tenant law and represents a large share of the major residential property management companies in the Portland/Vancouver metro area. You can reach Andy directly at 503-445-4302.
Monday, October 20, 2008
Meanwhile, Portland MAI Appraiser Mark D. Barry last week delivered a speech to the Metro Multifamily Housing Association (MMHA) predicting vacancies will increase slightly through year end 2009, with modest rent increases in the first six months of 2009 and flat the rest of '09.
Portland's Metro Multifamily Housing Association reported Portland/Vancouver MSA vacancies increased 0.7% over the last 12 months from 2.9% to 3.6%.
All sources are attributing the drop in occupancy rates to rising unemployment which is forcing some renters to give up apartments and move in with friends or family members. RealFacts Inc. predicts additional job losses will result in additional apartment vacancies during Q4 2008.
- Turnover rents up 4-8% to date with 3-6% increases in collections (RealFacts reports Portland/Vancouver MSA rents up 3.3% from one year ago)
- Landlords are increasing fees and more are starting RUBS
Wednesday, October 8, 2008
The Bureau of Housing and Community Development and the Bureau of Development Services are now working with the respective Commissioners-in-Charge to make sure that the recommendations of the workgroup are something that are politically feasible given the current economic conditions. The recommendations and the associated budget requests are expected to go to the Portland City Council "in the next month or so."
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Thursday, October 2, 2008
The Mortgage Bankers Association reports outstanding commercial / multifamily mortgage debt -- now at $3.4 trillion -- continued to grow and to see relatively strong, steady performance during the 2nd quarter of 2008. Total origination volume in Q2 2008 was down 63 percent from the second quarter of 2007.
Despite the significant drop in mortgage originations, investors increased their holdings of commercial / multifamily mortgages during the quarter – as the relatively low level of originations exceeded an even lower level of portfolio run-offs. Between the first and second quarters, investors added $51 billion of commercial / multifamily mortgages (net) to their portfolios, a 1.5 percent increase. Nearly every major investor group increased their holdings – led by commercial banks, Fannie Mae and Freddie Mac and Finance Companies, all of whom have sources of funding at least slightly immune from the ongoing capital markets turmoil.
The financial group with more than 80% of outstanding multifamily loans -- CMBS, Fannie Mae, Freddie Mac, Life Insurance and Commercial Banks -- report lower than expected delinquencies.
Insurance companies have more than 35,000 loans and $252 billion in outstanding balances -- and report only 23 loans are more than 60 days late. The FDIC backed portfolio of $1.2 trillion contained $15 billion in total delinquent balances over 90 days late or just 1.18 percent delinquent. Not bad in the current market.
The Mortgage Bankers Association’s Commercial/Multifamily Quarterly Data Book can be downloaded here.