Apartments Poised to Stage a Powerful Comeback 2011-2015

The long-term fundamentals for the multifamily apartment market look great: Shadow market inventories and concessions are expected to eventually burn off; renters will likely double-down into one-bedroom floor plans and trade-up in product class; and millions of new renters will flood the market just as the supply shortage becomes more tangible. By all accounts, the years between 2011 and 2015 should be the best the multifamily industry has ever seen, with supercharged rent growth made possible by the pricing power of stratospheric occupancies. It’s shaping up to be a huge business-growth banquet that everyone will be invited to. The only ticket to entry? You have to get punched in the stomach a couple of times with 2009 to 2010 market realities before you can move forward.

Read more on this story from Multifamily Executive. 

Sold! 16 Units in Vancouver $990,000

The 16-unit Forest Canyon Village apartments in Vancouver have sold for $990,000.  The complex is made up of eight duplexes covering 2.13 acres.  This serene community has large 2-bedroom units with tandem garages, wood burning fireplaces and washer/dryer hookups. 

HFO was the exclusive listing agent for this property. See many of HFOs current listings at www.hfore.com.

Housing Starts -- Including Multifamily -- Move Higher to Start the Year

Wells Fargo reports that housing starts climbed 2.8 percent in January to an annualized pace of 591,000 units.  There were gains in both single- and multi-family activity. Permits dropped in January but held on to roughly half of December’s gains. These gains occurred despite poor weather conditions up and down the East Coast.
Permits dropped 4.9 percent in January with declines concentrated in the multi-family sector. Single-family permits held above a half million units for the second straight month. The bank predicted continued activity in single-family in coming months.

Wells Fargo's Economics Group also reported that industrial production continued its gradual climb back to pre-recession levels, in its seventh straight monthly gain.

Landlords: Help Others With Tenants' Abandoned Property

The Landlord Times reported recently that when you end up with abandoned tenant property that could be used by others, you may want to contact an organization that gives away your items to the needy.  Some of them will even pick up the property for free!  

• Community Warehouse NE 503.235.8786 [essential furniture and household items]
• Portland Medical VA Center - [videos, CDs, DVDs, clothing] call Robin Lashbaugh @ 503.805.5993
• Dress for Success [interview appropriate clothing, make-up] 503.249.7300 or oregon@dressforsuccess.org
• Transition Projects Inc. [hygiene products, linens, clothing, books] 503.823.4930 x226 or donate@tprojects.org
• Multicultural Community Services [furniture, lamps, cooking utensils, diapers, sheets, blankets, dishes and other household items] 503.231.7480 or hclark@lcsnw.org
• Yolanda House Domestic Violence Shelter [bedding, cleaning supplies, office supplies, cooking items, craft supplies, silverware, diapers, hygiene products, soap, office chairs, mattress pads, pillows, socks, and more. 503.535.3270
• JOIN [socks, blankets, pet food] 503.232.7052 x 101 willh@joinpdx.com
• Schoolhouse supplies  [school and craft supplies] 503.249.9933

Wells Fargo Raises Estimate for First Quarter Growth, Reduces Others

In a report issued today, Wells Fargo said its expectations for near-term growth have ratcheted up, following the fourth quarter’s robust 5.7 percent real GDP growth. "While that number came in almost precisely in line with our forecast, we have raised our estimate for first quarter growth and slightly reduced our expectations for growth during the second and third quarters."

"We expect real GDP to rise at a 3.7 percent annual rate during the current quarter. Business inventories are expected to move back into positive territory for the first time in two years, adding 1.2 percentage points to first quarter growth. Final demand is growing much more modestly. Real final sales are expected to rise at a 2.0 percent annual rate, marking the fourth consecutive quarterly increase."
Read the full report > > >

U.S. Census Bureau Ranks Portland / Vancouver / Beaverton Nation's 7th Lowest in Rental Vacancy Rates

The U.S. Census Bureau has reported 4th quarter vacancy rate estimates for the top 75 U.S. Metropolitan Statistical Areas (MSAs). The Portland/ Vancouver/ Beaverton area ranked as having the nation's seventh lowest vacancy rate - a slight increase in vacancy from the 3rd quarter 2009, increasing from 5.1% to 5.3%

Lowest vacancy rates were reported as follows:

• Springfield, MA 3.0%
• Bakersfield, CA 3.3%
• Boston-Cambridge-Quincy, MA-NH 3.7%
• Albany-Schenectady-Troy, NY 4.1%
• Columbus, OH 4.7%
• Honolulu, HI 5.2%
• Portland-Vancouver-Beaverton, OR-WA 5.3%
• Oxnard-Thousand Oaks-Ventura, CA 5.9%
• Alburquerque, NM 6.1%
• New York-Northern New Jersey-Long Island, NY 6.2%

 The MSA's with the five highest vacancy rates were as follows:

• Louisville, KY-IN 20.2%
• Tulsa, OK 21.7%
• Dayton, OH 22.0%
• Orlando, FL 22.9%
• Memphis, TN-AR-MS 23.9%

Read the full report online.

HFO Announces the Sale of 76-Unit Apartment Complex in Beaverton for $5.6 Million

HFO investment real estate represented the buyer of the Hallwood Apartments, a 1986 garden apartment complex situated on approximately four park-like acres in Beaverton. The complex consists of (26) 1-bed 1-bath flats (6) 1-bed 1-bath units with lofts, (38) 2-bed 1-bath units and (6) 2-bed 1-bath apartments. The complex sold for $5,600,000 or $73,684 per unit. The price includes a credit for repairs. The buyer was Hallwood Properties, LLC and the seller was Hallwood Apartments, LLC & Blue Heron, LLC. HFO Investment Real Estate represented the buyer in the transaction.

Report: Market Conditions Steady -- Volume and Equity Financing Improve

Apartment market conditions are holding steady as sales volume and equity financing improve according to a National Multi Housing Council quarterly survey.

The National Multi Housing Council reports that the fourth quarter saw a continued uptick in sales volume and equity financing, a small step toward a more normal transactions market, after 2009 recorded the lowest number of transactions of the decade.

According NMHC, full recovery of occupancy and rents will require job growth to return to the economy. When that happens, and as a large wave of Echo Boomers begins to enter a supply-constrained market, we should see above average rent growth.

Insurance Rates for Apartment Building Insurance Dropped 3% in 2009

The National Multi Housing Council reports that apartment owners benefited from lower insurance costs in 2009. Sixty-one owner/firms responded to the NMHC annual survey of expenses, supplying cost data for insurance procurement for over 1 million apartment units nationwide. Price cuts are expected to flatten into 2010.

In addition, the survey found that fully 44% of apartment firms require residents to have renters’ insurance, a big jump from the 24% reported last year. The most common limit required is $100,000.
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