Multifamily News Headlines - MultifamilyBiz.com RSS Feed

Merger Creates One-Billion-Dollar Multifamily Entity

Thu, 17 May 2012 09:17:01 GMT

LITTLE ROCK, AR - Summit Housing Partners, LLC of Montgomery, AL and Bailey Properties, LLC of Little Rock, AR announced they have merged to form a new company called BSR Trust. The merger creates a $1 billion multifamily entity.

The combined company includes 18,689 units at 111 communities in ten states in the Southeast U.S. plus Texas and Oklahoma. BSR Trust contains a portfolio of both affordable and market housing. The merger has been approved by both companies' board of directors and remains subject to regulatory approval and project lender consent.

The merger opens up two markets for Summit Housing with relatively lower unemployment rates, Little Rock and Shreveport, where there are opportunities to acquire and/or develop additional market and affordable properties. BSR now has the infrastructure to expand its geography should such opportunities arise.

Daniel Hughes, CEO of Summit Housing Partners in Montgomery, AL will serve as the CEO of BSR Trust. John Bailey, CEO of Bailey Properties, LLC will serve on the company's board of directors and the Finance Committee.

All BSR properties will utilize common vendor purchasing, property and risk management systems as well as utilize common administrative functions like Accounting, IT, HR and Corporate Marketing. We believe that multifamily is a scale business," says Hughes.

"Both Summit and Bailey were profitable operating companies that were not under any financial or operating distress so neither company had to enter into this transaction. We are pleased to announce this merger of two industry leaders to create a stronger company with a focus to provide an exceptional living experience for the residents while building value for our shareholders," said Hughes.

Scott Ray, President of Bailey Properties, will serve as President of the Market Group, which will be based in Little Rock. Blake Brazeal, President of Summit Housing Partners, will serve as the President of the Affordable Group, which will be based in Montgomery.

Together, the companies are expected to be more profitable resulting in added financial strength that surpasses what either could accomplish on their own. "We believe this merger creates an example where the whole of the two companies is greater than the sum of its parts," said Hughes.

BSR Trust, with offices in both Montgomery, AL and Little Rock, AR, is in the business of development, acquisition and management of both market and affordable multifamily communities totaling 111 properties, with 18,689 units in 10 states. BSR Trust has nearly 600 employees in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas. The primary mission of BSR is to provide an exceptional living experience for residents at a community they are proud to call home.

Experian RentBureau Collaborate With ClearNow

Thu, 17 May 2012 08:09:56 GMT

COSTA MESA, CA - Experian^®, the leading global information services company, today announced its capability to accept rental payment data from individual landlords and smaller property managers through its new collaboration with ClearNow^®. ClearNow offers a low-cost and easy solution for collecting and making rental payments electronically and automatically. Experian, through its RentBureau^® business, currently receives rental payment data from more than 3,000 apartment communities, most of which are managed by large property management companies.

Through this collaboration, all landlords and property managers regardless of the number of units owned or managed have an opportunity to establish a more steady cash flow with electronic payments, reduce the administrative burden of collecting rent as well as gain a competitive advantage by providing residents an opportunity to build credit history through their rental payments.

ClearNow allows landlords and property managers to electronically collect rent from tenants via an automatic bank account debit. This relationship will allow renters to enjoy the convenience of automating their rent payment, which can help avoid late payments, and opt-in to reporting their rent payment history to Experian RentBureau. Experian currently includes rental payments on its credit reports which help many responsible renters build credit history.

RentBureau is the largest and most widely used credit reporting agency for the multifamily industry. RentBureau’s database receives rental payment histories every 24 hours from property management companies and currently includes more than 9 million residents nationwide. Data contributors report their rental data to RentBureau directly and automatically. Property management companies utilize this data to screen new rental applicants’ payment history as part of their existing resident screening services.

Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Retaining Residents Gets More Challenging

Thu, 17 May 2012 07:53:26 GMT

SAN FRANCISCO, CA - Fewer and fewer apartment residents are indicating intent to renew their leases. For the four quarters ending on March 31, 2012, only 58.5 percent of renters said they "definitely" or "probably" would renew, according to Kingsley Associates' latest resident survey results. This proportion has declined for five consecutive quarters and is 6.5 percentage points below the high of 65.0 percent observed less than two years ago.

This trend continued despite stabilization in overall resident satisfaction. For the period, 76.1 percent of residents rated their overall satisfaction as "excellent" or "good." While below the levels of satisfaction reported throughout 2009 and 2010, this figure has been fairly consistent for the past year.

"A lot of the positive news about multifamily real estate has focused on the limited number of units available to supply a larger number of renters," notes David C. Smith, COO, Kingsley Associates. "But demographic patterns of renters are also changing, and this will impact how residents make renewal decisions."

Indeed, the residents surveyed by Kingsley Associates over the past year tend to have higher incomes and are less likely to be living with children now than at any point during the previous three years. They are also much more likely to have been living in their apartment for more than a year. Such residents may feel that they have more flexibility to move. Some may be planning a return to being homeowners after a period of renting. Or perhaps these residents are simply less inclined to "tip their hands" when it comes to their upcoming renewal decision.

These findings and additional background are available in Kingsley Associates' Q1 2012 Multifamily Trends.

Kingsley Associates surveys in excess of 1 million apartment units annually on behalf of its clients. The findings outlined above are based on survey responses received between April 1, 2011 and March 31, 2012.

The most successful firms in real estate rely on Kingsley Associates for cutting-edge business intelligence solutions. Kingsley Associates is the leader in resident satisfaction surveys, tenant satisfaction surveys, client perception studies, strategic consulting and operations benchmarking.

Mortgage Rates Set 4th New Record in a Row

Thu, 17 May 2012 07:49:04 GMT

NEW YORK, NY - Mortgage rates fell for the seventh time in the past eight weeks and set a new record for the fourth consecutive week. The average rate on the benchmark 30-year fixed mortgage rate dropped below the 4 percent mark for the first time ever, down to 3.97 percent, according to Bankrate.com's (NYSE: RATE) weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points.

The average 15-year fixed mortgage rate held at 3.2 percent while the jumbo 30-year fixed mortgage sank to another record low of 4.52 percent. Adjustable mortgage rates were mixed, with the average 1-year adjustable slipping to 3.11 percent, while the popular 5-year ARM ticked higher to 3 percent.

The ongoing European debt crisis is producing another flight to quality, where investors gravitate to safe-haven investments such as U.S. Treasuries. Mortgage rates, which are closely related to yields on U.S. Treasuries, have been direct beneficiaries, falling to new lows. As long as uncertainty prevails, mortgage rates are likely to remain at these ultra-low levels.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 3.97 percent, the monthly payment for the same size loan would be $951.37, a difference of $290 per month for anyone refinancing now.

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The majority of the panelists, 58 percent, see little change in mortgage rates over the next seven days. The remainder are evenly split, with 21 percent predicting an increase in mortgage rates and an equal 21 percent forecasting a decrease in the coming week.

For the full mortgage Rate Trend Index, go to www.bankrate.com

Bankrate is a leading publisher, aggregator, and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes.

U.S. Housing Market Finally Reaches a Turning Point

Wed, 16 May 2012 08:18:18 GMT

NEW YORK, NY - Home valuations will start to climb again while adjacent consumer industries will capture significant new growth opportunities in 2012 and beyond as the U.S. housing market finally turns the corner, concludes a major new study released today by The Demand Institute. The recovery of the housing market will have far-reaching impacts in the coming years across the United States and international markets as U.S. consumers increase their spending on buying, renovating, furnishing and maintaining their homes.

Launched in February 2012 and jointly operated by The Conference Board and Nielsen, The Demand Institute is a non-profit, non-advocacy organization with a mission to illuminate where consumer demand is headed around the world.

The new report, The Shifting Nature of U.S. Housing Demand, predicts that average home prices will increase by up to 1 percent in the second half of 2012. By 2014, home prices will increase by as much as 2.5 percent. From 2015 to 2017, the study projects annual increases between 3 and 4 percent. This recovery will not be uniform across the country, and the strongest markets could capture average gains of 5 percent or more in the coming years.

"In these initial years, the prime driver of recovery won't be new home construction, but rather demand for rental properties," said Louise Keely, Chief Research Officer at The Demand Institute and a co-author of the report. "This is a remarkable change from previous recoveries. It is a measure of just how severe the Great Recession has been that such a wide swath of Americans had to delay, scale back, or put off entirely their dreams of home ownership."

"In the long-term, we don't expect home ownership rates to change," said Bart van Ark, Chief Economist at The Conference Board and co-author of the report. "Over 80 percent of Americans in recent surveys still agree that buying a home is the best long-term investment they can make. What will be intriguing to watch is how their aspirations around home ownership are affected by this period of extended austerity."

Between 2006 and 2011, some $7 trillion in American wealth was wiped out when home prices dropped 30 percent after dramatic climb in valuations during the housing bubble. Looking forward, the moderate growth expectations for coming years suggest a return to normalcy. As home prices continue to drop and interest rates fall further, first-time buyers and others who remained relatively cautious will be drawn back into the housing market. And, as the market recovers, so too will consumer spending.

"As the U.S. housing market strengthens, almost every consumer-facing industry will be impacted in the coming years," said Mark Leiter, Chairman of The Demand Institute. "Business and government leaders will benefit by fully understanding the nature of this recovery. In doing so they will be better able to anticipate how consumer demand will evolve, and to formulate critical business and policy decisions to lead their organizations."

KEY FINDINGS IN THE REPORT

In addition to the projected gains in home prices, the report discusses in detail the dynamics at work in the U.S. Housing market and the impacts across industries. What follows are highlights from the report:

The recovery will be led by demand from buyers for rental properties, rather than, as in previous cycles, demand from buyers acquiring new or existing properties for themselves. More than 50 percent of those planning to move in the next two years say they intend to rent.
Young people—who were particularly hard hit by the recession—and immigrants will lead the demand for rental properties. Developers and investors will fulfill it, developers by building multifamily homes for rent (that is, buildings containing two or more units, such as apartment blocks or townhouses), and investors by buying foreclosed single-family properties for the same purpose.
Rental demand will help to clear the huge oversupply of existing homes for sale. In 2011, some 14 percent of all housing units were vacant, while almost 13 percent of mortgages were in foreclosure or delinquent—increases of 12 and 129 percent respectively over 2005 levels. It will take two to three years for this oversupply to be cleared, and at that point home ownership rates will rise and return to historical levels.
The housing market recovery will not be uniform across the country. Some states will see annual price gains of 5 percent or more. Others will not recover for many years. The deciding factors will include the level of foreclosed inventory and rates of unemployment.
There will also be vast differences within states. Here, additional factors count, such as whether local amenities, including access to public transport, are within walking distance of homes. By examining seven factors that influence house prices at a local level, the report identifies four categories of cities and towns in which prices will behave differently.
The average size of the American home will shrink. Many baby boomers who delayed retirement for financial reasons during the recession will downsize. They will not be alone. The majority of Americans have seen little or no wage increase for several years, and many will scale back their housing aspirations. The size of an average new home is expected to continue to fall, reaching mid-1990s levels by 2015.
Consumer industries including financial services, home furnishings, home remodeling will all experience shifts in demand and new growth opportunities. Part of this spending is linked to increases in wealth from improving home valuations, while an even bigger part is tied to the "transaction" of buying or selling the home which sets in motion increased demand for a wide range of products and services.
Despite the number of Americans who have been hurt financially by the housing crash, the desire to own a home remains strong. We do not expect to see a long-term drop in ownership rates. Indeed, one survey has revealed that more than 80 percent of Americans recently thought buying a home remained the best long-term investment they could make.

The new report, The Shifting Nature of U.S. Housing Demand, can be downloaded at The Demand Institute's website: www.demandinstitute.org.

The Demand Institute illuminates how consumer demand is evolving around the world. We are on a mission to strengthen the growth and vitality of the global economy by helping public- and private-sector leaders align strategies and investments to where consumer demand is headed across industries, countries and markets. The Demand Institute is a non-advocacy, non-profit organization and a division of The Conference Board, which holds 501(c)(3) tax-exempt status in the United States. The Demand Institute is jointly operated by The Conference Board and Nielsen. Our headquarters is in New York City, with a presence in Beijing, Brussels, Chicago, Hong Kong, Mumbai, Singapore and Washington, D.C.

San Marquis Apartments Celebrates Grand Opening

Wed, 16 May 2012 08:09:18 GMT

TEMPE, AZ - With the opening of a new upscale apartment community this month in Tempe, Mark-Taylor and Kitchell mark a significant milestone in the Valley's real estate market -- the first new large-scale multifamily project in metro Phoenix in two-plus years.

Since the project was announced last summer, the 224-unit San Marquis Apartments in Tempe has piqued the interest of hundreds of potential tenants with its "luxury homes cleverly disguised as apartments." Conveniently located at Rural and Baseline, the $29 million upscale community boasts amenities found in other Mark-Taylor communities as well as exciting new features such as Roman soaking tubs and "carriage houses" offering above-garage living spaces.

San Marquis is the first of two luxury apartment communities developed by the innovative partnership of Mark-Taylor, a well-known name in the multifamily industry, and Kitchell, which is venturing into the apartment market for the first time. The team's second project is the 383-unit Parcland Crossing community located at south Loop 202 and Alma School Road in Chandler, which will open this summer.

"These projects came to fruition after careful consideration and solid understanding of the market potential," said Dale Phillips of Mark-Taylor. "We're two well-known, Arizona-invested companies, and we recognized some time ago that our collective strength and track record could create legacy communities that stand the test of time. These are the right projects, at the right time for the marketplace."

Both developments feature one-, two- and three-bedroom units in 14 floor plans ranging from 625 square feet to 1,400 square feet. The luxury amenities include resort-style pools, clubhouses, granite countertops and stainless-steel appliances. Rental rates range from $995 to $1809.

"We're known as a diversified company that isn't afraid to try new things, and the multifamily sector is one of the few bright spots in development these days," said Kitchell Director of Development Ryan Cochran. "Mark-Taylor is an ideal partner for us -- their industry knowledge, their track record and their business philosophy is a great complement to what we bring to the table with our financial strength and development history."

Coinciding with the San Marquis opening is Mark Taylor's Spring Into Action campaign, an expansive partnership with Life Time Fitness offering a one-month membership, personal training and two weeks of boot camp to existing and new residents at its 32 metro Phoenix communities, as well as complimentary fitness programs to Mark-Taylor residents in Las Vegas and Washington States. The unique approach meets the needs of prospective tenants that are seeking a fresh, healthy start-over in life.

Long known as a multi-family developer and property manager of its own rental apartment communities, Mark-Taylor is consistently recognized as a leader in the multifamily industry.

Kitchell Development, one of the Kitchell family of companies, is a full-service developer offering construction and property management services with specialties in retail, office and industrial development.

Zillow Introduces Zillow Partnership Platform

Wed, 16 May 2012 08:06:28 GMT

SEATTLE, WA - Zillow, Inc., the leading real estate information marketplace, today launched the Zillow® Partnership Platform, developed to help Zillow, multiple listing services and brokers work together to display accurate, complete and timely listing information.

The Zillow Partnership Platform outlines Zillow's commitment to work with its real estate industry partners to reduce the costs and time associated with listings management; and provide the best source of listing data to agents, home owners and home shoppers.

Under the Zillow Partnership Platform, Zillow's pledges include:

Update active listings and remove stale information as frequently as the MLS or broker allows.
Always show the listing broker, listing agent and the listing source.
Never re-syndicate, redistribute or sub-license listings without permission.
Never reuse listing data entrusted to one Zillow business to support another Zillow business.
Allow MLSs and brokers to choose Zillow's listings data source.
Honor all intellectual property rights.

"Zillow is committed to partnering with MLSs and brokers to get reliable and timely information to its more than 32 million unique users each month," said Bob Bemis, vice president of industry relations at Zillow. "We have a common goal to provide accurate listings for the benefit of agents and consumers."

Starting today, the Zillow Partnership Platform applies to all renewal and future MLS and broker contracts. Each partner will have a dedicated Zillow account executive to address concerns and quickly solve problems.

Zillow (NASDAQ: Z) is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. More than 32 million unique users visited Zillow's websites and mobile applications in April 2012. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile, Postlets® and Diverse Solutions™. The company is headquartered in Seattle.

Schottenstein Breaks Ground on Lancaster Midtown

Tue, 15 May 2012 08:53:38 GMT

LANCASTER, OH - The Schottenstein Real Estate Group, Central Ohio’s Developer of Year in 2006 and 2010, is excited to announce the construction of Lancaster Midtown. According to the Lancaster Gazette, a 240-unit luxury apartment complex will be built on 24 acres on Ety Road near Riverview Dr. – next to the Giant Eagle shopping facility.

The project will feature popular new designs of 1 and 2 bedroom garden, and 2 and 3 bedroom townhome units with a garage. A large clubhouse with state-of-the-art fitness center, WiFi business center, meeting rooms, resort swimming pool, terrace areas and many other site amenities will be offered.

“We are pleased to be constructing the first, large rental community in Lancaster in many years, and the Mayor and city administration have been very encouraging and welcoming for this exciting project,” said Schottenstein Real Estate Groups Chairman/CEO, Gary L. Schottenstein. “We are committed to making Lancaster very attractive to residents wanting to locate and relocate here."

The Schottenstein Real Estate Group has recently built new communities in Hilliard, Dublin, Polaris, Pickerington, Grove City, and the Westerville areas. Lancaster Midtown is another exciting large development project as the Columbus, Ohio based real estate company is in strong expansion mode. "The extra large interior size, beautiful exteriors, kitchens, bathrooms, closets, attached garages, are similar to the top plans in the best Columbus communities,” said Chuck Evans, Sr. V.P. of Development and Construction.

The Lancaster Midtown clubhouse, models and first households are expected be completed by late summer. The rental rates are proposed to be in the $600’s – 1200’s range. The community will offer over 10 leasing options, and a unique 100% satisfaction guarantee warranty. Brian Schottenstein, director of development and marketing, states “We value our customer service for residents and strive to adhere to the high standards featured on our website: reputation…integrity…trust.

Named both the 2006 and 2010 Developer of the Year by the Building Industry Association (BIA), The Schottenstein Real Estate Group is respected as one of the leaders in the real estate industry. The Schottenstein Real Estate Group is dedicated to creating exceptional communities for living, working, shopping and entertainment. The SRE Group has developed, marketed and managed more than 10,000 for sale homes or condominiums, more than 25,000 rental units and a variety of commercial, retail, land and office projects throughout the Midwest and Florida.

Rohit Anand to Deliver Top 12 Apartment Must Haves

Tue, 15 May 2012 08:16:32 GMT

VIENNA, VA - Award-winning KTGY Group, Inc., Architecture + Planning, is pleased to announce that KTGY Principal Rohit Anand, AIA, NCARB, has been invited to be a featured speaker in an upcoming webinar, "Top 12 Must Haves in Your 2012 Apartment Project," presented by the National Association of Home Builders (NAHB) on May 23, from 2:00-3:00 p.m. EDT.

Anand will share innovative products, technology and unit and amenity layouts that are being used in today's smaller apartments. Listeners will learn how to make smaller apartments more functional for the next generation of renters and what will keep multifamily developments competitive in today's challenging market.

In addition, Vice President Jeff Kayce at Bozzuto Development Company will discuss the financial implications of these new design elements and their impact on leasing. Kayce is responsible for expanding joint venture development opportunities within the greater Washington-Baltimore metro area. Currently, Kayce is overseeing more than $275 million in development, including Union Wharf (Baltimore), Flats170 at Academy Yard (Odenton, Md.), and Cathedral Commons (Washington, D.C.). Kayce managed the development of The Fitzgerald in Baltimore, Maryland, ULI’s recipient of the National Award for Excellence in 2011.

Anand is the managing principal for KTGY's Tysons Corner, Va. office. Anand brings more than 25 years of professional achievement in leading the design of multifamily residential developments primarily in the mid-Atlantic and major East Coast markets. Anand's experience includes the design of nearly 25,000 market rate residential units ranging from for-rent and for-sale multifamily units to single-family attached and detached homes. A recognized industry authority and trend-setter, he is adept at providing product positioning advice and efficient construction systems that help meet a developer's proforma. Anand's leadership, strategic insight, communication skills and comprehensive knowledge have helped his team to design award-winning projects that have gained local and national recognition. He counts among his clients four of the nation's top 10 multifamily residential developers: Trammell Crow Residential, UDR, The Bozzuto Group and Avalon Bay.

For more information about the webinar visit the NAHB Website.

Celebrating its 20th year, KTGY Group, Inc., Architecture and Planning, provides comprehensive planning and award-winning architectural design services for residential communities, retail, hospitality, mixed-use and related specialty developments. KTGY delivers innovative solutions that reflect clear understanding of development, market trends and financial performance and takes particular pride in its highly motivated and principal led studios. Serving clients worldwide, KTGY maintains offices in Irvine, Oakland and Santa Monica, Calif., Denver, Colo., and Tysons Corner, Va.

Gaia Real Estate and Starwood Acquire 9,500 Units

Tue, 15 May 2012 08:06:25 GMT

NEW YORK, NY - Gaia Real Estate and a controlled affiliate of Starwood Capital Group, a leading global private investment firm, announced today that they have agreed to invest $22.5 million of new equity to acquire and recapitalize PJ Finance Company, which filed for Chapter 11 bankruptcy protection in March 2011 and reemerged as a going concern on May 11, 2012.

PJ Finance Company's assets include a multifamily portfolio consisting of over 9,500 multifamily units located in major metropolitan areas throughout the high-growth Sunbelt region. More than 45% of units are located in Dallas, TX, with additional concentrations in Phoenix, AZ (19%), Atlanta, GA (8%), Houston, TX (8%), and Fort Lauderdale, FL (7%), Corpus Christi, TX (6%), Nashville, TN (5%), and Orlando, FL (3%).

The portfolio was originally acquired in 2001 and recapitalized with more than $540 million of securitized debt financing in 2006, at a valuation of $580 million. During the downturn the portfolio struggled under its heavy debt load and occupancy suffered as capital was unavailable to turnover units for new tenants. At one point, more than 1,700 units were taken offline and occupancy troughed at 72% in markets that enjoyed substantially (90%+) lower vacancies.

In March 2011, PJ Finance Company filed for Chapter 11 bankruptcy protection. As part of the recapitalization agreement, the debt has been restructured into three tiers; 1st Tier in the amount of $423 million, 2nd Tier in the amount of $52 million, and 3rd Tier in the amount of $28 million. Interest only shall be payable on the 1st Tier during the term of the loan, with no interest payable on the 2nd and 3rd Tier. The loan matures in 2020. While in Chapter 11, $14 million was re-invested into the portfolio, and current occupancy has dramatically improved to more than 90% as nearly 1,000 units were brought back online.

"We are excited to partner with Gaia to unlock all the substantial upside potential in these attractive assets," said Chris Graham, Managing Director of Starwood Capital Group. "We believe the structure of this investment is quite unique, and allows us to maximize the value of the portfolio with very little downside risk."

Gaia and Starwood will invest their capital as part of the restructuring to recapitalize the company and continue the stabilization of the portfolio. The new equity will earn a 16% preferred return and all principal and interest will be senior to the loan's principal. The capital will be used primarily for deferred maintenance, capital improvements and renovation work.

Over the next eight years, Starwood and Gaia plan to implement a $45 million capital improvement plan. Gaia and Starwood have engaged Pinnacle Company, one of the largest property management companies in the United States to manage the portfolio and assist in executing the improvement plan.

Gaia Real Estate, founded in 2009, is a Real Estate investment, property management and brokerage Company with headquarters in New York City and additional offices in New Jersey, Texas and Israel. Gaia pursues a range of real estate investments with a focus on residential and commercial properties. The group currently has 70 employees.

Starwood Capital Group is a private, U.S.-based investment firm with a core focus on global real estate. Since the group's inception in 1991, the firm has raised over $14 billion of equity capital and, through its various funds, has invested $12 billion representing over $32 billion in assets. Starwood Capital Group currently has over $19 billion of assets under management. Starwood Capital Group maintains offices in Greenwich, Atlanta, San Francisco, Washington, D.C. and Los Angeles, and affiliated offices in London, Luxembourg, Paris, Mumbai and Sao Paulo. Starwood Capital Group has invested in nearly every class of real estate on a global basis, including office, retail, residential, senior housing, golf, hotels, resorts and industrial assets. Starwood Capital Group and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets.

UC Funding Closes Multifamily Bridge Loan in Texas

Tue, 15 May 2012 07:55:14 GMT

BOSTON, MA - UC Funding has closed an $8.1 million bridge loan on Ridgecrest Apartments located in Dallas, TX. The transaction was closed in less than 30 days.Ridgecrest Apartments is 250 unit multifamily apartment complex located in the City of Dallas, seven miles southwest of the central business district.

"We are pleased to provide this interim capital solution to one of our many repeat customers. The seller was motivated to close quickly and UC provided capital to meet the time frame. UC also expects to provide a permanent loan solution, most likely through HUD, within the next 6-9 months" said Dan Palmier, President and CEO.

UC Funding LLC ( www.ucfunds.com ) is a national, diversified, real estate finance company, founded in 2010 and headquartered in Boston, with offices in New York and Miami. UC Funding provides commercial real estate financing solutions throughout the United States. Nearing 1 Billion in capital and a growing staff of 50 team members, UC Funding serves as one of the nation's fastest growing real estate financing institutions. UC Funding was nominated company of the month during 2011 by both the New York Real Estate Journal and New England Real Estate Journal. UC Funding's core belief is that real estate ownership and real estate financing should work together as a partnership. By working together, UC Funding shares each and every client's vision of creating innovative financial solutions.

UC Funding provides financial solutions throughout the entire capital stack, including joint venture equity. UC Funding is one of the nation's most entrepreneurial lending institutions focused on Multi Family, Retail, Office, Hotel and Industrial/Warehouse assets nationwide.

MAA Acquires 230-Unit Allure in Buckhead Village

Mon, 14 May 2012 08:28:33 GMT

MEMPHIS, TN - MAA announced today that it has completed the acquisition of Allure in Buckhead Village, a 230-unit mid-rise multi-family apartment community located in Atlanta, Georgia.

Allure in Buckhead Village was developed in 2002 by Trammell Crow Residential and is located in the desirable Buckhead sub-market of Atlanta which is one of the nation's largest mixed-use development areas. The Buckhead sub-market combines offices, retail outlets, hotels, restaurants, entertainment and high-end residential. Major employers in the area include AT&T, IBM, Fidelity and Morgan Stanley.

MAA plans to complete a renovation of the apartment home interiors with upgrades including stainless steel appliances, new counter tops, and enhanced lighting and plumbing fixture packages. The community offers residents a mix of one and two-bedroom floor plans with 9' ceilings, high-end maple cabinetry throughout and an average apartment size of 979 square feet. In addition, residents can enjoy a resort-style swimming pool with sun deck, fitness center and outdoor kitchen.

Commenting on the announcement, Al Campbell, EVP and CFO said, "We are currently selling several of our properties in the Atlanta market and we are pleased to be recycling capital into this high-end property and location. We believe the investment will benefit from the strong leasing appeal of the area and, combined with our operating platform, will drive attractive growth in value for our shareholders."

MAA is a self-administered, self-managed apartment-only real estate investment trust, which currently owns or has ownership interest in 49,155 apartment units throughout the Sunbelt region of the U.S.

Kennedy Wilson Acquires 409-Units in California

Mon, 14 May 2012 08:25:28 GMT

BEVERLY HILLS, CA - International real estate investment and services firm Kennedy Wilson announced the acquisition of Capitol Towers, a 409-unit apartment community in Sacramento, CA. The company and its partners purchased the property for $64 million, with $50 million in financing from HFF/Freddie Mac at 3.51%, fixed for seven years. Kennedy Wilson will invest 50% of the equity in the deal. The acquisition increases the company’s multifamily portfolio to ownership interests in 13,876 units, including deals currently under contract.

“The Capitol Towers acquisition is an exciting play on the Sacramento CBD market,” said Robert Hart, president of KW Multifamily Management Group. “The community is just a few short blocks from the Capitol Mall, the State Capitol and the light rail station, exemplifying Kennedy Wilson’s pursuit of higher density infill projects near a major transportation hub and job center that supports 100,000 office and government workers.”

According to Meyers Research, market rents for Sacramento MSA increased 2.2% in 2011 and continued to improve by 1.0% in the first quarter of 2012. Additionally, REIS predicts a four-year cumulative rent growth of 32% for the MSA.

Capitol Towers encompasses a four block area with 203 units in one 15-story tower and 206 villa units surrounding the tower. The villa portion is zoned for up to 1,290 units and the tower features six ground-floor retail units, providing residents with amenities that include groceries, dry cleaning and other conveniences. Additionally, a light rail stop is located adjacent to the property. Kennedy Wilson plans to renovate the existing units with new kitchen cabinetry as well as other treatments and further enhance the project’s fitness center, leasing office and retail amenities.

Kennedy Wilson, together with its institutional partners, has acquired approximately $5.5 billion of real estate and real estate secured debt through joint venture and consolidated investments since the beginning of 2010, including deals under contract. The estimated value of the real estate assets under the company’s management is $11.8 billion.

Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 23 offices in the U.S., Europe and Japan. The company offers a comprehensive array of real estate services including auction, conventional sales, property services, research and investment management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor of real estate investments in the U.S., Europe and Japan.

Group Announces $1 Billion Real Estate Merger

Fri, 11 May 2012 08:09:00 GMT

HOUSTON, TX - HFBE Capital, L.P., an affiliate of HFBE Inc., one of Texas' premier Valuation Advisory and Investment Banking Firms, recently announced the $1 billion merger between Bailey Properties, LLC and Summit Housing Partners, LLC (Summit Housing) creating BSR Trust, LLC. The deal has been approved by both companies' boards but remains subject to regulatory approval and project lender consent. This deal is one of the largest such real estate transactions this year.

David S. Kulkarni, Senior Managing Director, headed up the HFBE team, advising Summit Housing, a Montgomery, Alabama-based real estate owner and operator. Through HFBE's relationships with a diverse group of real estate owners, Mr. Kulkarni was able to identify and initiate a strategic merger partner for Summit Housing.

BSR Trust will operate 111 such communities in ten states in the southeastern US, Oklahoma and Texas, comprising about 18,700 apartment units. The merger provides BSR Trust with an enhanced geographical footprint.

Over the last several years, the HFBE real estate team has successfully completed over $350 million of private placements of equity to finance over $1 billion dollars of real estate acquisitions and developments. HFBE also provides a broad range of financing, advisory, and investment services to real estate operating and development companies. Specific services provided include fairness opinions, strategic alternative assessments, business valuations and mergers and acquisitions advisory services. HFBE has the experience and expertise to match the client's objectives with the most appropriate equity capital in the marketplace as it has well-established relationships with institutional investors, private equity funds, real estate investment firms, pension funds, and opportunity funds throughout the country.

Aimco Purchases Upscale Phoenix Apartments

Fri, 11 May 2012 07:52:15 GMT

DENVER, CO - Apartment Investment and Management Company has acquired San Melia Apartments, a 488-unit community located at 14435 S. 48th Street in Phoenix, Arizona. Aimco purchased the luxury apartment community from Investment Property Associates, LLC for $68.8 million. The Cooke Team at Colliers International was the broker for the transaction. With the addition of San Melia, Aimco's Arizona portfolio consists of 10 market-rate properties with a total of 2,409 units.

"San Melia is an outstanding apartment community in a highly attractive submarket of Phoenix where we expect solid returns on our investment," said Aimco Executive Vice President of Transactions John Bezzant. "It is conveniently located in proximity to a host of services and employment centers, and the property's high-end amenities create an exceptional living environment for our residents. With the new Aimco management team in place, residents can expect superior customer service, a well-maintained property, and the security and convenience of living in a professionally managed apartment community."

San Melia is a Class A apartment community built in 1998 by Mark-Taylor Development. The previous owner, Investment Property Associates, implemented a unit renovation program in 2011, and approximately 68 units have been partially or fully upgraded. San Melia features 64 garden-style, two-story buildings with 488,104 rentable square feet on approximately 27.5 acres. It offers one-, two- and three-bedroom units, ranging in size from 728 square feet to 1,345 square feet. Interior features include a full-size washer and dryer, gourmet kitchen, nine-foot ceilings, ceramic tile flooring, and private balcony/patio.

Community amenities include a new, upscale clubhouse with a business center, a new resident's lounge, resort-style heated swimming pool with a sand beach, two spas, a 24-hour, state-of-the-art fitness center, two sand volleyball courts, basketball and tennis courts, barbecue areas and well-appointed cabanas, lighted bike and walking paths, and garage and carport parking.

"We were pleased to be involved in the San Melia transaction," said Cindy Cooke, Executive Vice President of Colliers International. "For Aimco, it was an opportunity to acquire one of the top five properties in all of Arizona. San Melia is located in the highly desirable Ahwatukee Foothills submarket, with an average household income of $102,386 within a three-mile radius. The submarket also has one of the highest occupancy rates in the Valley."

Aimco is a real estate investment trust that is focused on the ownership and management of quality apartment communities located in the largest markets in the United States. Aimco is one of the country's largest owners and operators of both conventional and affordable apartments, with 361 communities serving approximately 250,000 residents in 30 states, the District of Columbia and Puerto Rico. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV and are included in the S&P 500.

Investment Property Associates, LLC develops, owns, and manages investment real estate in order to deliver outstanding client experiences and consistent, competitive rewards to all stakeholders. IPA is a recognized leader in the development of multifamily housing with a focus on prime locations, natural settings, sustainable sites, desirable floor plans, premium amenities, social opportunities, and attention to detail. As a full-service commercial real estate development firm, IPA directs multifaceted projects from concept through disposition. With offices in Phoenix and west Michigan, IPA owns and manages approximately 4,000 apartment and student housing units, including the 322-unit Avenida currently under construction in south Chandler, and two new Phoenix-area developments scheduled to break ground by year end.

Colliers International is the third-largest commercial real estate services company in the world with 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International as the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate brand in the world.

Serviam Towers Honored With Excellence Award

Fri, 11 May 2012 07:46:47 GMT

NEW YORK, NY - The National Association of Local Housing Finance Agencies (NALHFA) presented Serviam Towers with the Multifamily Excellence Award at their 2012 annual conference in Austin, Texas. Developed in collaboration with Fordham-Bedford Housing Corporation (FBHC), Oaklander, Coogan & Vitto Architects, P.C. (OCV), and Galaxy General Contracting Corporation, Serviam Towers is a two-building complex part of the Serviam Gardens development which brings affordable, sustainable housing to senior citizens in New York City.

The Multifamily Excellence Award is bestowed upon projects identified as providing special needs, including senior housing and housing for the homeless with supportive services. Award winners are recognized as models for the community and deemed financially viable for both tenants and developers, while exemplifying exceptional design.

Built on the campus of The Academy of Mount St. Ursula in the Bronx, Serviam Towers is a new construction connected to a former convent on the site that was renovated and converted to provide apartments and social spaces for residents. The whole development provides 243 units of housing to low and moderate income seniors, with on-site amenities such as a media room, yoga/tai chi room, gym, game room, a 54-seat theater, lounges, and both indoor and outdoor gathering spaces.

Serviam Towers is the first City-subsidized affordable housing development completed using the Enterprise Green Communities Criteria (EGCC), bringing together a sustainability agenda that reaches beyond the building to the community that comprises it. Included in the project are landscaped grounds with productive garden beds for residents’ plantings, as well as an 8,000 square foot green roof outfitted with a rainwater harvesting system. These features were recently recogized by the American Society of Landscape Architects (ASLA) NY Chapter with an Honor Award in Collaborative Design.

In addition to the green roofs, other green features throughout the development include a high performance building envelope with Energy Star appliances and light fixtures, high efficiency boiler and heating and cooling system, and non-toxic, renewable and recycled interior finishes. The development is located within a secure setting and in close proximity to public transportation and community amenities.

Partnering with Enterprise benefits both the community and residents in the development. Rising utility costs have increasingly contributed to a cost of living burden many New Yorkers experience and in the absense of a sustainable strategy to combat these costs, many City residents will continue to be affected. Those living at Serviam Gardens enjoy reduced expenditures attributed to the energy efficiency built into the project. Additionally, as part of the Greener, Greater Buildings Plan, Serviam contributes to the reduction in NYC’s annual greenhouse gas emissions by 7.5%, based on 2005 City-wide emissions.

Serviam Towers construction, developed under Mayor Michael Bloomberg’s New Housing Marketplace Plan (NHMP), embodies PlaNYC, the city’s affordable and sustainable housing initiative to create a ‘greener, greater’ New York. PlaNYC strives to create a more liveable New York City by offering an increased number of sustainable and affordable neighborhoods in the presence of what is projected to be a population growth of one million by 2030.

MG Properties Acquires The Cornelius Apartments

Thu, 10 May 2012 08:01:15 GMT

SEATTLE, WA - MG Properties Group (MGPG), a private, San Diego-based real estate investor and operator, announced the acquisition of The Cornelius Apartments, a 137-unit multi-family property in downtown Seattle, for $18.5 million. The seller was an affiliate of Goodman Real Estate.

The Cornelius is located in the heart of the popular Belltown mixed-use residential neighborhood on the edge of Seattle's free bus service and blocks from Amazon.com's recently announced three-block, 3,000,000-square-foot planned Denny Triangle headquarters and office project development. Built in 1925, The Cornelius went through extensive physical improvements in 2010, including a full renovation of apartment interiors, addition of state-of-the-art common areas, and extensive upgrades to the building's systems and envelope.

Mark Gleiberman, MGPG's President, describes the property as being "ideally positioned to appeal to residents looking for a well-appointed in-city home with an excellent value proposition. Seattle's growing prospects for professional employment in the downtown and south Lake Union districts make Belltown likely to experience strong apartment fundamentals in the coming years."

The Cornelius is MGPG's second purchase from an affiliate of Goodman Real Estate within the past year. The seller was represented by Tim Campbell and Jeff Gilson of Pinnacle and MGPG represented itself in the transaction. The acquisition was financed with a $13.8-million, 10-year, fixed-rate loan from Freddie Mac, arranged by Bryan Frazier of CW Capital. MGPG took advantage of low rates to lock in 10-year financing with five years of interest only.

According to Paul Kaseburg, MGPG's Director of Investments, "The acquisition of The Cornelius was made more complex due to the recent renovation and leasing-up status of the property. As a repeat buyer, MGPG was well positioned to creatively work through these transactional challenges with the seller."

MGPG's most recent purchase in Seattle was the $22.3-million acquisition of The Park at Northgate apartment community in September 2011.

Since December 2010, MGPG has completed eight apartment acquisitions totaling 1,785 units at a value of more than $230 million. MGPG anticipates closing an additional $200 million in acquisitions within the next 12 months.

MG Properties Group is a privately owned West Coast real estate owner and operator specializing in multi-housing assets. Over the last 20 years MGPG has acquired 74 communities totaling nearly 12,000 units, representing more than $1.1 billion in total asset value. The company's current portfolio includes over 8,000 units in California, Washington, Arizona and Nevada. MGPG employs 250 professionals with in-house expertise in acquisitions and underwriting as well as asset, property, construction and investment management.

J Turner Research Recognized for Service Excellence

Thu, 10 May 2012 07:53:08 GMT

HOUSTON, TX - J Turner Research, a leading marketing research firm exclusively serving the multifamily industry, recently recognized several communities managed by Boston-based Berkshire Property Advisors for delivering exceptional customer service to its residents throughout the year, as measured by the annual Turner Apartment Loyalty Index (TALi). TALi measures residents’ overall satisfaction levels based on a variety of criteria during their stay and ranks the community’s score based on this data. Berkshire achieved the highest TALi representation of multifamily apartment operators across the country, with nine properties ranked in the TALi top 35, according to the national survey.

“J Turner Research’s TALi Award is a true measurement of a community’s ability to meet and exceed resident’s customer service expectations based on a variety of criteria throughout the year,,” said Joseph Batdorf, principal of the company. “This is the first time our annual TALI award has recognized 9 properties within a single portfolio. This unprecedented accomplishment underscores Berkshire Property Advisors’ commitment and dedication to creating an overwhelmingly positive resident living experience at its communities”

Data for the rankings was collected by J Turner Research based on a random monthly sampling of resident responses to a variety of customer service related questions. Participating respondents are given the opportunity to share feedback regarding their interaction with community personnel, willingness to provide a referral to the community and satisfaction with maintenance requests. Responses are converted into a unique TALi score and ranked on a scale of 0-10. Communities achieving TALi score equal to or greater than 7.5 are recognized as part of an elite ranking of communities for their ability to deliver exceptional customer service to residents throughout the year.

“Berkshire Property Advisors is proud of placing a total of nine properties in the TALi top 35,“ said Berkshire Chief Operating Officer Alan King. “Our goal is to consistently provide exceptional customer service to our residents, and J Turner Research provides the unbiased survey outreach and data collection that helps us to ensure that all of our communities are striving for top performance. Our TALi awards speak directly to that commitment to customer satisfaction.”

The nine Berkshire Property Advisors communities that ranked in the TALi 35 include The Preserve at Manatee Bay, Bear Creek Apartments, Berkshires of Matthews, Walden Pond & The Gables, Berkshires on Lynn Lake, Townhouse, Sedgefield, Southern Villas, and Berkshires at Sweetwater Creek. In addition to the official TALi award, property managers from the winning communities will be treated to dinner and a Broadway show courtesy of J Turner Research.

Based in Houston, J Turner Research specializes in developing and executing innovative and affordable research services for multifamily owners/operators of both student and conventional apartment communities. Utilizing an e-mail based survey program, J Turner Research accurately measures the perceptions of prospective and current residents to help owners better understand how to optimize operational and marketing efficiencies within a portfolio of communities.

Headquartered in Boston, MA, Berkshire is a vertically-integrated, national organization which focuses on multifamily real estate investment. Founded in 1969, Berkshire has been one of the nation's most active owners and lenders in the multifamily industry, closing more than $11 billion of multifamily equity transactions and $22 billion of mortgage loans. Berkshire manages approximately 33,000 multifamily units in 30 markets and has debt investments collateralized by approximately 78,000 units, with a team of approximately 850 professionals. Berkshire delivers a broad range of investment and management services to its institutional investor clients, including acquisition of equity and debt investments, development and redevelopment services, as well as portfolio, asset and property management services. The Company’s assets under management total approximately $4.4 billion.

Mortgage Rates Set 3rd New Record in a Row

Thu, 10 May 2012 07:46:37 GMT

NEW YORK, NY - Mortgage rates fell for a fifth consecutive week, with the average rate on the benchmark 30-year fixed mortgage rate dropping to 4.02 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year fixed mortgage rate retreated to 3.2 percent while the jumbo 30-year fixed mortgage pulled back to 4.54 percent – both record lows. Adjustable mortgage rates were lower too, with the average 3-year adjustable inching tying a record low of 3.06 percent, while the 5-year ARM fell below the 3 percent mark for the first time ever, down to 2.99 percent.

An uninspiring jobs report, combined with heightened anxiety about Europe's debt woes is fueling demand for high-quality U.S. government debt. Mortgage rates have been direct beneficiaries of this as they are closely related to yields on long-term government bonds. As long as nervousness persists, you can expect mortgage rates to remain in this now familiar record low territory.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.02 percent, the monthly payment for the same size loan would be $957.14, a difference of $284 per month for anyone refinancing now.

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Half of this week's panelists foresee still lower mortgage rates, while 43 percent expect they'll remain more or less unchanged over the next seven days. Just 7 percent of respondents predict an increase in the coming week.

For the full mortgage Rate Trend Index, go to www.bankrate.com

Bankrate is a leading publisher, aggregator and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, insurance, credit cards, and other categories, such as retirement, automobile loans, and taxes. The Bankrate network includes Bankrate.com, our flagship website, and other owned and operated personal finance websites, including CreditCards.com, Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com, Nationwide Card Services, InsuranceQuotes.com, CarInsuranceQuotes.com, InsureMe, Bankrate.com.cn, CreditCards.ca, NetQuote, and CD.com. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of nearly 600 local markets in all 50 U.S. states, Bankrate generates over 172,000 distinct rate tables capturing on average over three million pieces of information daily. Bankrate develops and provides web services to over 75 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC and Bloomberg. In addition, Bankrate licenses editorial content to over 100 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times and The Boston Globe.

Korman Sees Demand for Eco-Friendly Apartments

Wed, 09 May 2012 08:47:44 GMT

PHILADELPHIA, PA - Philadelphia-based multifamily property management firm Korman Residential has converted hundreds of apartments into KindSpace earth-friendly apartments in Pennsylvania, New Jersey, Delaware, and Florida. These KindSpace apartments incorporate renewable materials, energy efficiency, water conservation, and a reduced carbon footprint thanks to locally sourced materials.

"The KindSpace program has greatly outperformed our projections. Customer demand for sustainable, earth-friendly apartments is growing stronger every day," explains John Korman, CEO of Korman Residential.

Each of the KindSpace apartments save over 4,000 gallons of water annually, the paint contains 0% volatile organic compounds to reduce smog, and even the tiles, counters, carpets, and stainless steel backsplashes contain recycled material.

Every KindSpace apartment features a sustainable Modernista Kitchen, designed to provide residents with the best in-home culinary experience possible by bringing together natural, renewable materials in an imaginative way. The Modernista Kitchen has stainless steel Energy Star Rated appliances, pre-consumer recycled custom engineered maple flooring and natural maple cabinets from regionally sourced FSC Certified wood with 100% recycled pre-consumer material.

Industry expert Kate Good adds, "We are now seeing renters make their decision to rent based on an apartment community's commitment to living green."

"We are eager to share this earth-friendly business model that has proven successful across our portfolio," states James Korman, President of Korman Residential.

Korman Residential owns and manages multi-family property portfolios in Pennsylvania, New Jersey, Delaware, and Florida, and currently provides third party property management services to select clients.

Associated Estates Acquires Desmond's Tower

Wed, 09 May 2012 08:44:48 GMT

CLEVELAND, OH - Associated Estates Realty Corporation announced that it will expand to Southern California by building apartments on Wilshire Boulevard in the highly desirable Miracle Mile submarket of Los Angeles.

Associated Estates purchased the historic Desmond's Tower at 5500 Wilshire Blvd. and the adjacent parking lot. The acquired property comprises 2.21 acres with the parking lot area being entitled for apartments. Associated Estates plans to build up to 175 apartments and structured parking. Desmond's Tower is a 78,800 square foot office and retail building that has several tenants, including the internationally acclaimed Ace Gallery.

The apartments will be known as The Desmond on Wilshire and construction is expected to begin spring of 2013. Merit Enterprises, Inc. ("Merit"), a wholly owned subsidiary of Associated Estates, will act as construction manager.

"The Desmond is an exceptional opportunity and a terrific way to develop our first Southern California apartment property in a highly sought after location on Wilshire Blvd.," said Jason Friedman, Vice President of Construction and Development. "We are excited about expanding into this market," Friedman added.

The Desmond on Wilshire will be located in one of Los Angeles' most coveted and historic neighborhoods with close proximity to many large employers and to the city's most exclusive and vibrant residential communities including Beverly Hills, Hancock Park and West Hollywood. Miracle Mile offers excellent walkability to upscale retail, dining, museums and mass transit, as well as easy accessibility to major interstates including the 10, 405, 101, and 110 Freeways. Desmond's Tower was not listed for sale.

Associated Estates is a real estate investment trust ("REIT") and is a member of the Russell 2000 and the MSCI US REIT Indices. The Company is headquartered in Richmond Heights, Ohio. Associated Estates' portfolio consists of 52 properties containing 13,388 units located in eight states.

CoreLogic Releases May MarketPulse Report

Wed, 09 May 2012 08:36:50 GMT

SANTA ANA, CA - CoreLogic, a leading provider of information, analytics and business services, today released its May CoreLogic MarketPulse report. The monthly economic publication provides insight into the current and future health of the U.S. economic climate with particular focus on housing and mortgage metrics. CoreLogic Chief Economist Mark Fleming and Senior Economist Sam Khater authored the articles and commentary.

Key findings in the May MarketPulse Report include:

The national housing market is transitioning to more stability in sales and home prices, with reasonable inventory levels and a declining share of REO sales.
Short sales, modifications, and other foreclosure alternatives are playing a larger role than in years past, and the flow of new foreclosures is declining with an improving economy.
Mortgage performance is experiencing a slow and steady improvement as the 90+ day serious delinquency rate in March fell to 7.0 percent, the lowest rate since July 2009. "This decline in serious delinquency represents a significant reduction of approximately three quarters of a million borrowers," said Fleming in the report.
Overall home sales activity continues to improve, with total sales eclipsing 410,000, up more than 20 percent from a year ago and the highest March sales rate since 2007.
While the national market continues to improve, it masks regional variation where some local markets are improving much more rapidly than others. The most improved markets from a year ago are Phoenix, Boise and Salt Lake City.
Home prices are at, or very close to, the bottom as the Memorial Day weekend approaches.

For a complete copy of the May CoreLogic MarketPulse report, including a complete set of data and charts, visit the Corelogic Website.

CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The Company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built one of the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. The Company, headquartered in Santa Ana, Calif., has approximately 5,000 employees globally.

PRIMEDIA Completes Acquisition of Rent.com

Wed, 09 May 2012 08:30:27 GMT

ATLANTA, GA - PRIMEDIA, the premier renter resource for apartment and rental home information and listings, announced today that it has completed the acquisition of eBay Inc.’s Rent.com subsidiary. The acquisition creates the industry-leading resource in the fast-growing rental market with reach in all 50 states.

“Our acquisition of Rent.com creates the premier digital network to help consumers find the perfect place to live,” said Charles Stubbs, PRIMEDIA President and Chief Executive Officer, who will lead the combined company. “This acquisition demonstrates an unparalleled level of investment to change the industry and best serve our customers.”

This investment further solidifies PRIMEDIA’s unrivaled leadership position to deliver the most groundbreaking digital solutions and generate the best return on investment of any multi-family provider. The combined company brings together the two leading innovators in the multi-family industry with PRIMEDIA’s industry-first mobile applications --- including iPhone^®, iPad^®, Android^™, and Kindle Fire^® --- along with Rent.com’s pioneering pay-per-lease model. Together, PRIMEDIA and Rent.com can deliver a full suite of solutions that no other provider can match.

Consumers can tap into the largest network of rental listings, giving them the greatest selection and most robust content at anytime via any platform of their choice, including mobile devices, web sites, and various social media channels. By connecting the largest consumer and customer bases, along with industry-leading solutions, PRIMEDIA continues to demonstrate its ongoing commitment to the multi-family industry.

The intent to acquire Rent.com was announced on March 22, 2012. Terms of the transaction are not being disclosed.

PRIMEDIA helps millions of consumers nationwide find apartments, houses for rent or new homes for sale through its category-leading web sites and mobile applications, including ApartmentGuide.com, Rentals.com, RentalHouses.com and NewHomeGuide.com. PRIMEDIA continues to simplify the consumer home search and drive leads that result in occupancies for property management companies, landlords, new home builders and real estate professionals. PRIMEDIA was acquired by TPG on July 13, 2011.

TPG is a leading global private investment firm founded in 1992 with $49 billion of assets under management and offices in Fort Worth, San Francisco, Beijing, Chongqing, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings. TPG seeks to invest in world-class franchises across a range of industries. Some of the firm's well known investments include Continental Airlines, Burger King, Creative Artists Agency (CAA), Hotwire, Travelocity, J.Crew, Petco and Neiman Marcus.

Rent.com is the leading pay-for-performance internet listing site (ILS) in the rental housing industry and enables renters to find a rental property online using a free, robust search tool. Rent.com allows property managers to cost-effectively fill their vacancies. Prospective renters can search the site’s detailed property listings, including contact information, pricing, photos, floor plans, and virtual tours. Rent.com was founded in 2000 and was acquired by eBay, Inc. in February 2005.

Wood Partners to Build Transit-Oriented Community

Tue, 08 May 2012 07:59:36 GMT

DENVER, CO - Perry Mason never lost a case in Denver and a piece of the filmed legacy of the famed fictional defense attorney will be preserved at Alta Alameda Station, a new apartment community to be built by Wood Partners, L.L.C., a national multifamily developer with two other luxury apartment communities in the Denver Metro Area.

Alta Alameda Station, a 338-unit community to be built on more than five acres at 275 Cherokee St., is located in the historic Baker district west of S. Broadway. It is directly across the street from the Alameda Light Rail station, which provides rapid access north to downtown Denver and south to the Denver Tech Center.

"Alta Alameda Station reflects our commitment to locating energy-efficient, transit-oriented apartment homes in vibrant, urban neighborhoods with easy access to local entertainment, dining and shopping," said Tim McEntee, Wood Partners director for the Rocky Mountain region.

Construction will begin in early May on the property's three buildings, each four stories tall. Alta Alameda Station will be open for lease in the summer of 2013 and is expected to be complete in early 2014.

Alta Alameda Station will be constructed at the former site of the Denver Studio Complex, owned and operated since 1988 by Lighting Services Inc., which is relocating a few blocks away. It was used in the production of most of the 22 Perry Mason movies-of-the-week filmed in Denver until the death of series star Raymond Burr in 1993.

The witness box where Perry Mason routinely prodded confessions out of recalcitrant rogues has been preserved and, along with other artifacts and photos of Colorado's film history, will be part of the design of Alta Alameda Station.

Wood Partners developed Alta Aspen Grove in Littleton, as well as the forthcoming Alta City House project currently being constructed adjacent to Union Station. The company has a policy of green building at all new developments, and Alta Aspen Grove was the first market-rate apartment community of stick frame construction to be certified under Leadership in Energy and Environmental Design (LEED) for Homes in Colorado.

Alta Alameda Station also will be an environmentally sound community featuring a sustainable green design and an outdoor orientation.

"This community will be designed and built to attract residents who want the 'Baker lifestyle' -- pedestrian-friendly urban living with a creative, diverse population and unique living spaces," McEntee said. "There will be a courtyard and rooftop terrace to take advantage of Denver's 300 days a year of sunshine, along with a dog park and a bicycle workshop."

Alta Alameda Station will offer a range of studio, one-, two- and three-bedroom units, each with a patio or deck and vinyl plank flooring in entryways, kitchens and bathrooms.

Full-size washers and dryers, granite kitchen countertops, hardwood kitchen and vanity cabinets, stainless steel appliances, oval soaking tubs in master bedrooms, walk-in closets, iPod docking stations and high-speed internet and networking wiring are among the features available.

Community amenities will include a state-of-the-art fitness center equipped with free weights, cardio and strength machines, yoga and spin areas and stretching area with flat panel TV displays. A serenity/meditation room, secured parking and storage areas, business/office center with wireless Internet, landscaped courtyard, water features, grilling area with flat panel TV displays, rooftop terrace with indoor/outdoor lounge, a resort-style pool area, dog wash, dog park and bicycle workshop.

The complex includes a set-aside route for a bicycle-pedestrian path that will connect to the Alameda Light Rail station as well as the Platte River Greenway and a planned lifestyle mall south of the station.

Steve O'Dell and Chris Cowan of Apartment Realty Advisors were the brokers on the transaction. The project's design team comprises Paul Bergner of PBA, John Norris of Norris Design and Billy Harris of Harris Kocher Smith.

About Wood Partners Wood Partners is a national real estate company that acquires, develops, constructs and property manages high density and mixed-use communities. In 2011, it was ranked the nation's No. 1 multifamily developer with 3,750 unit starts. Through quality construction, responsible land development and intelligent design, our communities reflect the aesthetic and social fabric of the community and provide a luxurious living experience at a fair price. The company has been involved in the development of more than 40,000 homes with a combined value of more than $5.5 billion nationwide. Wood Partners has offices in 15 major markets nationwide including Atlanta, Baltimore, Boca Raton, Boston, Charlotte, Dallas, Denver, Houston, Newport Beach, Orlando, Phoenix, Raleigh-Durham, San Francisco, Seattle, Washington, D.C.

224-Unit Affordable Senior Housing Community Opens

Tue, 08 May 2012 07:55:07 GMT

IRVINE, CA - WNC, a national investor in community renewal and affordable housing projects, in partnership with USA Properties Fund, has announced the grand opening of Vintage at Snowberry Apartment Homes. The 224-unit community will address the extensive need for affordable housing among seniors in Riverside County. WNC provided $9 million in Low Income Housing Tax Credits (LIHTC) financing for the project, which was developed by USA Properties Fund.

“There remains a dearth of affordable housing options for Riverside County’s large community of senior citizens,” said Will Cooper, Jr., chief executive officer of WNC. “This project was developed and leased up in an unprecedented 16 months and represents an important milestone in filling this substantial void.”

According to USA Properties Fund, the $32 million development will also provide a positive economic impact to the Riverside community, supporting 170 construction jobs during development and 72 ongoing local jobs directly related to Snowberry’s operation.

The 10-acre property features spacious one- and two-bedroom apartment homes in five distinct floor plans. Located at 8402 Colorado Avenue in Riverside, the gated community offers the following features:

Fully furnished kitchens with energy efficient appliances, full-size washer/dryer hook-ups and walk-in closets
Extensive on-site amenities, including a spacious clubhouse, fitness area, pool and spa area, business center, laundry facilities and covered parking

Vintage at Snowberry is also conveniently located in close proximity to Riverside’s many shopping, dining and public transportation options.

“These beautiful, Spanish colonial style apartments will enable seniors to thrive within a vibrant community of their peers,” said Geoffrey C. Brown, president of USA Properties Fund. “With extensive amenities, mountain views and a central location, Vintage at Snowberry offers residents a vital mix of luxury, affordability and independence.”

Vintage at Snowberry celebrated its grand opening and ribbon cutting on May 2 with U.S. Congressman Ken Calvert and Riverside City Councilmember Chris MacArthur on hand to welcome residents to the new community and show support for affordable housing projects.

Financing partners for the project included WNC, The City of Riverside, Riverside County Department of Mental Health, Wells Fargo Bank and Citi Community Capital.

The LIHTC program is an indirect Federal subsidy used to finance the development of affordable rental housing for low income households.

WNC & Associates, Inc., founded in 1971 and headquartered in Irvine, Calif., is a nationwide investment firm specializing in Low Income Housing Tax Credits and New Market Tax Credits. To date, WNC has acquired over $5 billion of assets totaling more than 1,050 properties in 45 states. Additionally, WNC has been awarded four NMTC allocations to date totaling $178 million and has facilitated development of 15 community renewal projects. WNC’s investor base exceeds 19,500 institutional and retail clients, including Fortune 500 companies, multinational banks, and insurance companies.

USA Properties Fund, Inc. (USA), a California corporation, is a privately owned real estate development organization specializing in the creation of outstanding senior and family communities. Founded in 1981 and headquartered in Roseville, USA provides a full range of capabilities for community development, including financing, development, construction services, rehabilitation and property management. Our values, leadership and team structure reflect our success with the development of over 10,000 units of family and senior apartments in over 72 communities throughout California and Nevada.