Wednesday, September 29, 2010

Wherefore Art Thou, Distress? -- Apartments March Ahead

The nation’s apartment sector appears to be recovering faster than other segments, in a sort of “first in, first out” play on the recession.

In the second quarter, the multifamily mortgage default rate declined by 47 basis points, from 4.63% to 4.16%, falling below the commercial default rate for the first time in two years. Read more at the National Real Estate Investor online in their story: Wherefore Art Thou, Distress?

Friday, September 24, 2010

Wall Street Journal: Apartment Market Heats Up

The Wall Street Journal reported this week:
"Apartment buildings are considered a sound investment: Landlords have been able to keep rents up and units filled, even during the downturn. And, since there’s been little new development in the last few years, some industry watchers expect to create a supply shortage in some markets down the road." 
Portland developer Dwight Unti was way ahead of this story, as we reported in May following Dwight's speech at the Portland Metro Multifamily Housing Association. Read the Wall Street Journal Analysis.

Thursday, September 23, 2010

Apartment Transactions Surge

Multifamily Executive reports that improving fundamentals, cheap money, cash-stacked buyers and motivated sellers suddenly converge, striking deals. Click to read more.

Tuesday, September 21, 2010

Continued Rental Recovery Hinges on Employment Growth

Multifamily Executive magazine reports that occupancy, vacancy, rental, and concession numbers from the first half of the year all show we are experiencing a rental recovery.  But there's a catch.  Job growth is nowhere to be found. Economists, executives, and analysts are all scratching their heads trying to figure out what is driving this year's surge in rentals without much luck explaining it. There is one thing they agree on:  unemployment could deflate the recovery just as quickly as it came. Read more in Multifamily Executive online.

Tuesday, September 14, 2010

Sold! Timbers at Towne Center

HFO is pleased to announce the sale of Timbers at Towne Center.  This property consists of 26 partially complete units with land for an additional 26 units.  The property is convenient to shopping and has easy freeway access.  The seller was Albina Community Bank.  HFO represented the parties in the transaction. Timbers at Towne Center sold for $625,000.

Seattle Apartment Market Update - Rents up Even With 10-Year Record Number of Units Brought to Market

Report from MPF Apartment Market Research.

Monday, September 13, 2010

The Latest Trends on Income and Expenses in Rental Apartment Communities

The National Apartment Association has published its annual Survey of Operating Income & Expenses in Rental Apartment Communities.  An executive summary by Christopher Lee is available from the NAA website free of charge.  A full detailed report is available to NAA members for $599 and to non-members for $1,000.  The survey breaks the 50-states into six regions.  Oregon and Washington are in region VI.  Download the executive summary here.

Thursday, September 9, 2010

National Apartment Association Posts Mid-Year Apartment Report Updates

The 2010 Mid-Year Apartment Report from the National Apartment Association includes these predictions:
  • Many more assets will hit the market Q3 and Q4 with an attempt to close by year-end.
  • Occupancy will remain tight across the country
  • Effective rents will remain strong
Other reports state "investors seeking small balance loans ($2 million or less) had more challenges in the first half of the year but there is reason to expect that situation to improve in Q3 and Q4. Mortgage REITS, Fannie Mae, Freddie Mac, HUD/FHA, and CMBS aggregators are generally geared toward larger transactions but some are adjusting minimum loan levels down to increase deal flow and earn spread premiums."  However, analyst Mike Bryant of Berkadia Commercial Mortgage in Dallas opines, "as multifamily housing debt opportunities increase, the under $2-million debt deal will eventually attract new lenders because the space has limited competition and great spreads."  Read more of these and other reports.

Tuesday, September 7, 2010

Suburbs and Sprawl No Longer All The Rage

In this month's edition of Multi-Housing News, author R. Scott Ziegler of Ziegler Cooper Architects in Houston examines what is happening in American cities today with regard to sprawl.

What's interesting about this article is that it highlights the costs of suburban sprawl on the environment, as well as the respective tax values.

It's clear from the chart above that irrigation, electricity and sometimes farm acreage are utilized in far greater amounts in suburbs as opposed to apartment buildings.  Ziegler argues that higher density development, close to conveniences and entertainment, will be in high demand in the future.  He also cites a study by the Brookings Institute that the U.S. population is expected to increase 33 percent -- to more than 376 million -- by 2030 -- 94 million people more than in the year 2000. 

Read more.

Thursday, September 2, 2010

Apartment Market Research - Q2 2010 Results - Video Discussion

The U.S. apartment market is -- quite surprisingly -- on track to make 2010 a banner year. The apartment sector gained roughly a quarter million renters, on net, in the first six months of 2010, according to preliminary data from MPF Research's 2nd quarter survey. MPF's Greg Willett and Jay Parsons discuss the impressive performance in this episode of the Multifamily Fast Lane.