Archives by: John Bergin

Fannie, Freddie, FHFA, lenders work on mortgage deal

Fannie Mae, Freddie Mac, the Federal Housing Finance Agency and lenders are working on an agreement that would expand access to mortgages. The deal "would allow credit to flow more freely to lower- and middle-income households," said Mark Zandi, Moody's Analytics' chief economist. "That's vital to getting the housing recovery moving forward." Reuters (10/17), The Wall Street Journal (tiered subscription model) (10/17), Bloomberg (10/17) Read full story   Read more

U.S. posts strong output, jobs numbers

Production at U.S. factories, mines and utilities jumped 1% last month for the biggest gain in nearly two years while initial claims for jobless benefits plunged to a 14-year low last week. The data reinforced other figures pointing to an improving economy but contributed to a mixed picture overall, including weak retail sales data reported a day earlier. Reuters (10/16) Read full story Read more

CMBS projected to reach $100B this year

The U.S. commercial mortgage-backed securities market is expected to post $100 billion in originations for 2014, an important post-financial crisis milestone. Despite market fluctuations, demand for these securities remains strong, CREFC CEO Steve Renna says. (10/16) Read full story Read more

Consumer spending gives strength to U.S. economy

Consumer spending is on the upswing in the U.S. and will likely keep the economy solid even as global growth slows, economists say. Low gas prices and low borrowing costs will likely keep consumers spending in the near term. Bloomberg (10/14) Read full story Read more

Capital from Self-Directed IRAs Flows to Real Estate

Individuals with self-directed IRAs are adding to the abundant capital flowing into commercial real estate investments these days. Read full story Read more

CalPERS is increasing its real estate investments

Real estate has risen to 9.9% of investments for the California Public Employees’ Retirement System, up from 8.7% as of July 31, according to documents. The largest U.S. pension fund plans to increase that to 11% in fiscal year 2016. Its focus is on fully leased office towers and multifamily properties in large cities, which CalPERS says are safer investments than some of its precrisis real estate holdings. The Wall Street Journal (tiered subscription model) (10/7), Bloomberg (10/7) Read full story Read more

Expectations for Rise in Rates Pummel REITs

REIT stock prices lagged behind the broader stock market as investors bet rates would rise over the next year Read full story   Read more

Draghi’s Case for Quantitative Easing in Europe [Forbes]

ECB announcing QE plans via purchase of private sector credit, covered bonds, and cutting interest rates. Read full story   Read more

Sept. 2014 US Economic & Housing Market Outlook – “Multifamily On The Move” [Freddie Mac]

Strong demand for apartments among younger households has created ripe conditions for rental apartment development.  Read full story Read more

Cap Rates Fall to Historic Lows as Investors Chase Yield Far Afield [Multifamily Executive]

Cap rates fell to 4.4% in Big Six markets for Q2. Volume increasing in secondary/tertiary markets. Read full story   Read more

5 Reasons Occupancy is Growing Stronger [Multifamily Executive]

Even with 180k units coming online in the last year, occupancy & rent growth highest this century. Read full story Read more

Millennials Maintain Multifamily Momentum—Spur Sustained Investment [CoStar News]

Multifamily continues to be a hot sector based on rental demand from Millennials. Read full story Read more

Demand for Apartments Proves Stronger Than Thought, Driven by Millennials

Good news for multifamily housing—demand for space is likely to be even stronger than experts estimated, helping the sector keep ahead of new construction for the immediate future, according to the Mid-Year Outlook 2104 from Freddie Mac Multifamily Research. “For a majority of the markets… new supply will continue to be absorbed as it enters the market and rents will continue to rise,” the agency’s researchers note. Apartment pros have been increasingly worried ... >>Click here for full story (NREI subscription required) Read more

Banks, Conduits Lead Lending Activity for CRE

It’s shaping up to be another big year for commercial and multifamily lending—especially for banks and conduit lenders, according to the latest figures from the Mortgage Bankers Association (MBA), an industry trade group. “Commercial and multifamily borrowing is running at about the same pace as 2013, even though the volume of loans maturing and needing to be refinanced is 23 percent lower than last year’s level,” says Jamie Woodwell, MBA’s vice president ... >>Click here for full story. (NREI subscription required) Read more

5 Reasons Occupancy is Growing

Most people think that when a flood of new supply hits the apartment market, occupancy and effective rents will go down. That’s true in most cases, but not in the first half of 2014, according to Axiometrics research. Even though 180,000 units have come on line in the past year, with thousands more on the way in the third and fourth quarters, occupancy and effective-rent growth have been at their highest levels since almost the turn of the 21st century. >>Click here ... Read more

Raleigh-Cary has nation’s second fastest growing economy

As the US economy is expected to taper out at a long-run growth rate under 3%, the Raleigh-Cary market will likely rise and remain above 4% growth through 2020. >>Click here for full story   Read more

Raleigh #4 Fastest-Growing City For Renters in US

If you are renting an apartment in Raleigh, you are among the fourth fastest-growing population in the country. Raleigh's population grew 4.8% from 2010 to 2012. >>Click here for full story   Read more

Secondary & Tertiary markets to shine in 2014

St. Romain, managing director for capital markets at Chicago-based Jones Lang-Lasalle, sees a shift occurring as opportunities cool off in primary markets, and secondary markets become the shining stars of 2014...St. Romain is particularly interested in the Southeast and feels many markets in that area have a lot of depth and room for success. >>Click here for full story Read more

Apartment construction at an all-time high in Charlotte

Apartment construction in the Charlotte region has hit an all-time high, according to the latest report from research firm Real Data, with the average vacancy rate expected to rise during the next year...There are 10,067 apartments units under construction in the region — including 8,122 in Mecklenburg County — and an additional 11,003 units proposed, according to the firm’s latest report... >>Click here for full story Read more

Multi-Family’s Maximal Momentum

Multifamily in Charlotte and the Carolinas still has its mojo--lenders are still willing to lend for it, and investors are still looking to buy it because they both believe in the sector's upside for years to come...Demand for multifamily loans in the Carolinas continues to be strong in all sectors, as job growth strengthens and population growth expands... >>Click here for full story Read more

Investors Gaga Over Multi-Family

Which do investors want more in greater Charlotte, Class-A or Class-Bapartments? Neither, ARA principal Blake Okland tells us. They've been going after As for a while, but as those opportunities dwindle, Bs will do quite nicely. (The sale of Alpha-Bits cereal is also through the roof.) Blake says that 2012 and 2013 were dominated by new urban infill properties... >>Click here for full story Read more

North Carolina & Texas headline nation’s most affordable cities

Every few days there seems to be a new ranking of the "best" cities that features North Carolina locales, and here's a new one that takes into account affordability. Charlotte ranks fourth and Raleigh ranks sixth among the nation's six most affordable cities evaluated by consumer website Texas claims the top three and fifth spots. >> Click here for full story Read more

Politics & CRE Sales (Déjà Vu)

The failure of Congress and the administration to reach a budget agreement before the Oct. 1 deadline, the possibility that the debt ceiling will not be raised before the nation is unable to pay its obligations, and the huge swings in the stock and bond markets are all too familiar. After the last time we went through this and our nation’s credit rating was downgraded and the sequester became law, we thought our politicians would have learned to put politics aside ... Read more

What do students really want in housing?

When it comes to student housing, one thing is pretty much clear: The dorm days are over. To satisfy both cost and quality-of-life concerns, most students have moved off campus into modernized student housing communities. Competition for their rent dollars hinges on several key components of the rental property: proximity to school; apartment size and plenitude of storage space; availability of one bathroom for every resident (even if they share a bedroom); and a fitness center as the crown jewel in your ... Read more

Confidence in Multifamily at All-Time High

The apartment and condominium market continued to gain momentum in the second quarter with builders’ and developers’ confidence in the sector soaring to an all-time high, according to the National Association of Home Builders’ multifamily index.  The index rose to its highest reading since 2003, which is the year the index began. The index measures builder and developer sentiment in the apartment and condo market. The latest reading for the second quarter was 61. Any number above 50 indicates that more respondents ... Read more

Second Quarter Apartment Markets Mixed in Latest NMHC Survey

While demand for apartment homes remained strong, rising interest rates exerted negative pressure on the industry’s ability to secure debt financing according to the National Multi Housing Council’s (NMHC) July Quarterly Survey of Apartment Market Conditions. Only the Market Tightness Index (55) remained above the breakeven line of 50 this quarter. Sales Volume (46) and Equity Financing (49) dipped, with Debt Financing dropping sharply to 20.   » Click here for full story Read more

America’s 10 Fastest Growing College Towns

Raleigh checks in at #1 in America's fastest growing college towns according to NREI.  » Click here for full story Read more

Highwoods to Develop MetLife’s Global Technology and Operations Hub in Cary, NC

Raleigh-based Highwoods Properties has unveiled its plans to develop a $110 million office park for MetLife on Weston Parkway in Cary. Called Weston Lakefront, the 100 percent pre-leased build-to-suit campus along the shores of Lake Crabtree will initially include two, 213,500-square-foot, LEED-certified office buildings with structured parking. The facilities will be located on 26.5 acres of a 40-acre site Highwoods owns near the Raleigh-Durham International Airport. The remaining 13.5 acres of waterfront land will be pre-graded to accommodate a third potential building, ... Read more

Top Metros with Rising Apartment Rent Rates

The Trulia Price Monitor and the Trulia Rent Monitor are the earliest leading indicators of how asking prices and rents are trending nationally and locally. They adjust for the changing mix of listed homes and therefore show what’s really happening to asking prices and rents. Because asking prices lead sales prices by approximately two or more months, the Monitors reveal trends before other price indexes do. With that, here’s the scoop on where prices and rents are headed. Trulia Price Monitor & ... Read more

Motel Makeover

Developers are turning roadside ruins into affordable housing The Luna Lodge once welcomed weary travelers making their way on old Route 66 through New Mexico. One of the many motels that sprouted up along the famed highway in the 1950s, Luna was built at a time when families vacationed by car and stayed in mom-and-pop motels advertising cheap rates. But as Route 66 was replaced by faster freeways, roadside businesses dwindled and fell into decline. Luna Lodge, which is listed on the National Register ... Read more

EPA Study: Infill Represents 21% of New-Home Construction

Nationally, infill development qualifies as a widespread trend that many housing and planning experts love to discuss. But a new study by the EPA’s Office of Sustainable Communities shows that the presence of infill varies significantly in housing markets across the country, with infill accounting for just 2% of new-home construction in Prescott, Ariz., and 80% in San Jose, Calif. “The biggest surprise was the wide range of outcomes across metropolitan areas,” says Kevin Ramsey, a policy research fellow with the EPA ... Read more

Exclusive Research: 7,000 Students Reveal Their Housing Wants and Needs

To satisfy both cost and quality-of-life concerns, most students have moved off campus into modernized student housing communities, and competition for their rent dollars hinges around several key factors: be close to school, build big apartments with lots of storage, and make sure residents have their own bathroom (even if they share a bedroom).  » Click here for full story  Read more

Apartment Owners Tackle Negative Online Reviews has long been considered the most controversial of the ratings websites out there. Many managers and owners consider it a hotbed for resident hostility. In a recent small scale survey distributed and compiled by Houston-based Multifamily Insiders and sponsored by Lutherville, Md.-based SatisFacts Research and Corralville, Iowa-based Apartment Grade, 58 percent of respondents said they felt they received a false rating. » Click here for full story  Read more

The Interest Rate Surge and Its Impact on Multifamily

We all knew the ultra-low mortgage rates seen over the last couple years wouldn’t last forever. Still, the recent rise of a full percentage point over a two-month period left even the steeliest of apartment professionals reaching for their Pepto-Bismol. » Click here for full story  Read more

National Apartment Trend Q2 2013

Reis VP of Economics & Research, Dr. Victor Calanog, provides an update on the apartment sector performance for the 2nd quarter of 2013. 13 quarter streak of declining vacancies came to an end in Q2 2013 27,000 units came online in the second quarter Asking rent grew by 0.6% while effective rent grew by 0.7% East coast and California vacancy rates are tight » Click here for full story Read more

CHARLOTTE: Carolinas Attracting Institutional Capital

The Carolinas are on the national stage now for multifamily investors looking for properties......   » Click here for full story Read more

Riding the Interest-Rate Wave….Sellers take note..

We all witnessed the recent volatility in the stock market that was spurred by commentary from Federal Reserve Chairman Ben Bernanke, on the potential unwinding of quantitative easing. The commercial real estate industry also took a collective breath when 10-year Treasury yields increased over 100 basis points over a 45-day window in response to his commentary. None of this should come as a surprise as many experts have stated for years that interest rates have only one direction to move.  » Click here ... Read more

Student-Housing Sector Gets “A” Grade from Experts

After showing impressive resilience during the Great Recession, the student-housing sector is set for a strong future and is attracting increased interest from investors. Those were some of the points made by a panel of student-housing experts on a recent episode of the “Commercial Real Estate Show.” My guests and I examined many topics related to the sector, including in-demand amenities, rent growth, financing and construction costs.  » Click here for full story Read more

A Deep Dive into the Federal Reserve’s View of CRE….

The Federal Reserve Bank’s plan to ease its monthly bond acquisitions, otherwise known as quantitative easing, has sent reverberations through the markets. Most notably, yields on 10-year Treasuries have jumped to around 2.5 percent—up from a low of 1.66 percent in early May. Since Treasuries are the basis for many types of debt...... » Click here for full story Read more

Students’ Housing Choices Focus on Value

Yesteryear’s undergrads may have spent money frivolously, but today’s students, with the recession in their rear view mirror, are intent on curbing debt and getting the most for their rental dollar. The term “budget-conscious college student” might seem like an oxymoron, but nowadays it’s not. Today’s undergrads are more conscious of expenses than their predecessors.   » Click here for full story Read more
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