Tuesday, January 31, 2012

Apartments in the Pipeline - 2,500+ Units On Tap for 2012

HFO Marketing Director Aaron Kirk Douglas gives a roundup of apartment units slated to come online in 2012 in the Portland/Vancouver metro area.

Home Prices Fall Again in Portland

Mirroring widespread weakness in the housing market, the S&P Case-Shiller index reported home prices in Portland fell by 1.6 percent in November, 4.8 percent lower than November 2010.

A turning point is not seen as close at hand according to a Case-Shiller spokesman.

Meanwhile, another barometer of housing market health, the local Regional Multiple Listing Service reported that the Portland area median home price in November fell 3.4 percent year-over-year and December prices showed a year-over-year drop of 6.2 percent.

Thursday, January 26, 2012

Portland metro area unemployment lowest in 3 years

The Oregonian reports data from the state employment department about the Portland-area's unemployment level falling to 8.6 percent, its lowest in three years. Read the full story.

Meanwhile, most people are still unaware of a report issued last month by the Oregon Employment Department forecasting an 18 percent increase in employment statewide in the coming decade. Read the story.

Portland Releases Draft "Portland Plan" For Review

Although the public comment period is here, the latest Portland Plan draft document is available now online. According to the City, "The Portland Plan is not just a land use plan; it is a plan for people. It will help create new jobs, successful students, distinctive neighborhoods, a vibrant Central City and an exceptional environment — in collaboration with an engaged community."

Download and read the draft plan now.

Learn more about the city's Buildable Land Inventory.

A Video Guide: How to read the Portland Plan

Wednesday, January 25, 2012

HFO 2012 NW Apartment Market Forecast

HFO Investment Real Estate partner Greg Frick offers an update on the 2012 Portland/Vancouver area apartment market for apartment owners and investors.

Thursday, January 19, 2012

HFO-TV: Demographic Trends Affecting Today's Rental Housing Market

Sheila Martin, Director and Professor of the Institute of Portland Metropolitan Studies/Population Research Center discusses Socio-demographic Trends Affecting Housing the Portland Metro Area

Wednesday, January 18, 2012

That New Renter? Probably A Single Mom

Studies by Property and Portfolio Research indicate there's a fairly large subsection of the rental market that developers may be forgetting about.  Although  married couples (with and without children) still account for the largest overall share of renters with 26%, single moms and single women together comprise close to 40% of renters. The report says "Developers may want to think about how to design new apartments, or renovate existing communities, so single moms feel at home. Kids’ rooms and outdoor play areas might take precedence over rooftop lounges."  Read more in the Wall Street Journal.

Tuesday, January 17, 2012

Top 1031 Exchange Audit Topics Identified in California

Recently, it was reported that 1031 exchanges continue to be one of the top audit topics for the California Franchise Tax Board (“FTB”).  Although these items relate to audits conducted by the State of California, it is applicable on a much larger scale since virtually all states (and the Federal government) are “cash strapped” and are looking for sources of revenue.

The FTB identified the following as being among the most common issues in their audits of 1031 exchanges:
  1. Failure to make a proper identification or comply with other technical requirements of Section 1031;
  2. That the relinquished and/or replacement property are not held for a qualifying purpose (held for investment or productive use in a trade or business). For example, the property is used for personal purposes or it is held primarily for sale;
  3. The taxpayer who sells the relinquished property is different from the taxpayer who acquires the replacement property; and
  4. The taxpayer receives non qualifying property in the exchange (boot), but fails to report it on their tax return.
Using a qualified exchange intermediary can help avoid these and other issues.  Information courtesy of ipx1031. Learn more at: www.ipx1031.com.

Monday, January 16, 2012

The Latest In Housing Trends - Single Family vs. Multifamily

With apartment owners pushing rents to all-time highs and pundits hopeful of an economic recovery within the next decade, how long will the rent-versus-own dichotomy last?  Multifamily Executive offers an exclusive look at who’s winning and who’s losing the battle for the hearts, minds, and checkbooks of Americans looking for a new place to live.  Click here to read this special report.

REIS: Apartment Vacancies Hit 10-Year Low

The vacancy rate fell to 5.2 percent, the lowest since the end of 2001, the New York-based property research firm said in a report. It was 5.6 percent in the previous three months and 6.6 percent a year earlier. The average monthly effective rent, or what tenants paid after landlord giveaways, climbed 2.3 percent from a year earlier to $1,009, Reis said.  Read more.

Thursday, January 12, 2012

Pearl District Activists Not Impressed By Shorter Buildings

As developers turn to building shorter apartment structures to accommodate demand for rentals while keeping rent levels competitive, Pearl District Activists remain unimpressed.  They worry that the area won't have "buildings of distinction" and say the opportunity to create a beautiful skyline will be missed.  Read the full story in the Northwest Examiner.

Kingsberry Heights - 260-Unit Investment Opportunity in Oregon City

Kingsberry Heights is an institutional-quality low-income housing tax credit property in the Portland, Oregon suburb of Oregon City. With 100% of the units rented to tenants at 60% of median income, it is the gold standard of low-income housing projects and operates very similar to a market rate apartment building.
Kingsberry Heights offers excellent access to adjacent Clackamas Community College. It is ranked "Very Walkable" because of convenience to shopping, restaurants, grocery stores, professional services, higher education and banks. This is a turnkey investment which is doing well and will continue to do so.

Apartment Insurance Costs on The Rise

The National Multi-Housing Council has reported that for the first time in four years, the cost to insure apartments rose slightly in 2011. The survey is based on data covering 750,000 units by 57 management companies. After a decline of 6% in 2010, the increase in 2011 rates averaged 1%. Read more.

Tuesday, January 10, 2012

Energy Trust of Oregon Cash Incentives for Multifamily

Meredith R. Rizzari, Senior Outreach Associate for the Energy Trust of Oregon discusses financial incentives available to apartment owners for improving energy efficiency in multifamily housing.

No Weak Links in Portland Apartment Market

Although there was a bit of a letdown this last quarter in Portland, there really aren’t any meaningfully weak links no matter how you slice and dice the metro area's data, and the area continues to outperform Seattle and San Jose. As for the future, Portland barely misses out on a top 10 metro-level ranking for apartment revenue growth in 2012.  Read the full story.

Monday, January 9, 2012

Transactions top $160 billion - Multifamily Expected to Lead in 2012

From today's GlobeSt.com: Jones Lang LaSalle reports multifamily investment may overtake office on an absolute basis “for the first time in recent memory.” A VP for America's research for the company says: “Multifamily will definitely remain the most desired sector this year.”  Read the full story.

Monday, January 2, 2012

Multifamily Industry Expects Another Positive Year in 2012

Will the favorable trends of 2011 continue? Oliver Chang, an analyst at Morgan Stanley, thinks so, calling 2012 “The Year of the Landlord” in a recent report. “Rents are rising, vacancies are falling, household formations are growing and rental supply is limited,” the report observed. “We believe the demand for rental properties will continue to grow.” Read the full story at Multi-Housing News.