Tag Archives: event

Lovejoy Bakers almost ready for its South Waterfront debut

A popular Pearl District bakery is expanding to the South Waterfront location with the opening of a new location May 12 at The Emery.

Lovejoy Bakers is one of several food-related businesses opening in the apartment building, which opened over the winter at 3135 S.W. Moody Ave.

ZRZ, the real estate arm of Zidell Marine, partnered with Project^ to develop the 112-unit apartment building as a forerunner for development of the barge-building company’s 33-plus acre site below the Ross Island Bridge.

Cha Cha Cha Mexican Restaurant and Green Leaf Juicing will open later.

Lovejoy Bakers, a Pearl District icon, operated by Tracy and Mark Frankel, became the first business to lease at The Emery when they signed a deal for a 1,495-square-foot space overlooking the project’s patio-like sidewalk last summer.Debbie Thomas Real Estate brokered the deal.

Article written by Wendy Culverwell, Staff Reporter with the Portland Business Journal.

To view the original article: Click Here 

 

Make Millions with Apartments in a Down Market

time to invest

We are pleased to announce our next edition of the Apartment Investor Series. This monthly seminar is aimed at educating and assisting buyers and sellers of apartment buildings in the greater Portland Metro area.

 

These one hour seminars are free of charge to qualified investors.   Our next edition of the Apartment Investor Series will teach investors how to make millions with apartments in a down market. 

Date: December 14, 2011, 8:00 AM to 9:00 AM
Location: Columbia Square Office Building: 111 SW Columbia St., 8th Floor Conference Room, Portland, OR 97201, Parking validated.
Speaker: Bernard Gehret, M.A., Co-Founder & Principal Broker for Joseph Bernard, LLC. and Commercial Association of REALTORS 2010 Investment Broker of the Year
Description: This month’s Apartment Investor Series focuses on how actual apartment investors in the Portland-Vancouver market are successfully generating massive wealth, even in a down market. Seminar leader Bernard Gehret will illustrate actual recent case studies of successful investors, and will break down their strategies and methods to finding the “right” property. Attendees will learn how they increase values of their properties through varying successful strategies employed by the experts.
Registration: Please call 503-546-9390 or 866-546-9390

 

Business Briefing with Brian Bushlach – November 27, 2011

Joseph Chaplik is a routine guest speaker on the Business Briefing show with Brian Bushlach, Sunday afternoons on 101.1FM KXL. Topics discussed include the current apartment market, multi-family trends, forecasts, and much more.

To listen to the November 27, 2011 show, click here.

KXL

 

Apartment Demand Surges in U.S. as Credit Constraints Block Possble Buyers

demand surgesDemand for rental apartments is booming as more Americans either can’t or don’t want to buy their own home, according to participants at the Bloomberg Commercial Real Estate Summit in New York.

“This is the apartment’s moment, and it’s likely to be a long-lasting moment,” said Susan Wachter, professor of real estate and finance at the University of Pennsylvania’s Wharton School. To buy homes, people face “credit constraints or they’re nervous and waiting on the sidelines,” she said.

The average monthly effective rent — what renters pay after landlord giveaways are included — rose to $1,004 in the third quarter from $981 from a year earlier, research firm Reis Inc. (REIS) said last month. In comparison, the median price for a U.S. existing home in the same period dropped 2.2 percent to $166,400, according to the National Association of Realtors.

Foreclosures are helping to boost rental demand as displaced families with damaged credit ratings search for new homes, said Thomas Shapiro, president and portfolio manager at GTIS Partners.

“There are so many places where people have impaired credit, it’s going to be a long time before they can buy houses,” Shapiro said at the conference.

Apartment Vacancies Fall

The share of U.S. apartments that were vacant in the third quarter dropped to 5.6 percent, a five-year low, from 7.1 percent a year earlier, according to New York-based Reis. Developers broke ground on 227,000 homes in multi-unit buildings in September, the most in three years, according to the Commerce Department.

“The beginning of the rentership society is upon us,” Morgan Stanley said in a research report for clients last month.

Manhattan apartment rents increased to $2,970 a month in the third quarter, according to a report last month by appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate. That’s almost triple the U.S. average. New leases declined 6.9 percent to 7,998 and the number of listings on the market dropped 1.9 percent to 4,605 as tenants decided to stay put rather than compete for units.

Article written by Kathleen Howley for Bloomberg.com. To contact the reporter on this story: Kathleen M. Howley in Boston at kmhowley@bloomberg.net.

Portland State University’s Center for Real Estate Honors Evan Abramowitz

Evan AbramowitzPortland State University honored Evan Abramowitz on November 4, 2011 at the Center for Real Estate’s Open House Reception. Mr. Abramowitz was presented with both the Opus Northwest Scholarship and a BOMA scholarship (Building Owners & Managers Agency).

These scholarships are geared towards students considering careers in real estate and are evaluated based on grades, resume, and scholarship essay.

We are proud to have such an outstanding professional as a part of our brokerage team at Joseph Bernard, LLC. For further information, please contact Evan Abramowitz.

Multifamily the Star at the Fall ULI Meeting in Los Angeles

business conferenceMultifamily was on everyone’s mind at the ULI Fall Meeting in Los Angeles, where the apartment market might well be said to have been the star of the event. In sessions throughout the Fall Meeting at the L.A. Convention Center from Tuesday through Friday last week—and in countless conversations with each other as well as in video and print interviews with GlobeSt.com—attendees at the conference expressed a consensus that multifamily is the star of the commercial real estate investment world right now.

Multifamily was on the agenda at the last day of the Fall Meeting on Friday, as capital markets experts in one of the concurrent sessions discussed the “The Battle For Multifamily Space,” which examined how lenders are vying for multifamily financing deals, and another panel discussed the overall multifamily investment market.

In the lenders’ panel, representatives from Fannie Mae, Freddie Mac and private capital sources talked about what kinds of deals they are looking to finance, underwriting standards, the return of interest-only financing and other facets of lending for apartment deals.

Michael Berman, president and CEO of CW Capital, noted that although life insurance companies emerged early this year as serious competitors to Fannie and Freddie on a growing number of deals, he also sensed a pullback by the life companies later in the year in response to the European debt crisis and other concerns. “The life companies were getting pretty aggressive until about June,” Berman said, but after that they seemed to become more cautious not only because of the European debt crisis but also because of worries about a possible double-dip in the US economy and the continuing struggle to create jobs in the US.

Berman and the other panelists generally agreed that multifamily financing is readily available, but the availability and terms depend on the specific property, the geographic market, the borrower’s track record and other factors that lenders scrutinize a lot more closely today than they did before the downturn. “This is a great time to be putting 10-year money on your properties,” said Heidi McKibben, vice president of multifamily customer management at Fannie Mae.

In a question-and-answer session during the panel discussion, an audience member asked about the return of interest-only financing. Such financing is returning for some deals, Berman said, but it’s nowhere near as available as it was in the days leading up to the downturn, when scores of deals were financed interest-only, often for the full term of the loan. “Those days are gone,” Berman said.

Excerpt from the article written by Bob Howard for GlobeSt.com. To view the original article in its entirety, click here.

Apartments Are the Place of Stability

 All the trends are heading in the right direction for multifamily. That was the consensus of panelists at RealShare Apartments 2011, where more than 1,400 top executives gathered to look at every facet of the multifamily market. Phyllis Klein, director of strategic customer relationships at Fannie Mae, and speaker during the first panel of the day, said that she is very bullish and has seen vacancy levels drop this year; she expects rents to increase 2% to 3% and better in some of the more robust markets going forward.

Michael Desiato, vice president and group publisher of ALM/Real Estate Media Group, began the day-long event by pointing out that the apartment industry is truly outperforming the rest of every commercial property sector. “If we actually had an economy that was working right now, we would really be in good shape,” Desiato said. Desiato’s comments set the tone for panels throughout the day, where nearly all speakers agreed that the multifamily market in the near-term and long-term is expected to perform well.

The RealShare Conference Series is produced by ALM’s Real Estate Media Group, which also publishes Real Estate Forum and GlobeSt.com. “We are extremely busy and continue to work very hard on deals throughout the marketplace,” said Klein. “We are on track to meet our yearly production goals. Fannie is providing $1 out of every $5 in the multifamily market today.” Klein joined moderator Lew Feldman, partner of Goodwin Procter LLP, and Paul Angle, western managing regional director of Freddie Mac in the event’s first panel.

Angle too, discussed how busy Freddie Mac has been lately. “We are active in refinances and acquisitions and despite the fact that we are at record pace, we still have great capacity.” There is a tremendous cap rate compression in the coastal markets, said Klein.

“We are seeing good opportunities in places like Minneapolis and North County San Diego for example. What we see on the coastal markets is extremely strong.” Angle pointed out that he enjoys any market where there is job growth and rising rents. The markets where he sees that in include Denver, Seattle, and the Silicon Valley, which has taken off tremendously in recent months, he said.

In the long term, he points to places like Orange County, L.A. and San Diego. “We are also making loans in Phoenix and Las Vegas selectively in stable neighborhoods,” he said. Klein noted that underwriting standards haven’t changed over the past year at all. “We are extremely focused on property condition and the ongoing maintenance of those properties through the loan term. We are not looking to underwrite on a future repositioning, but instead, on current values,” he said. “Our LTV’s go as high as 80%, but obviously that changes depending on the product type.”

Angle added that Freddie Mac has “always had a high underwriting standard.” He noted that “we have been more aggressive in places where we see market condition growth in the future,” adding that “We really adapt to the conditions in the market.”

In terms of the characteristics they are looking for in a borrower, Angle says Freddie Mac looks closely at the borrower’s track record and investigates each situation (foreclosure for example) to see how the borrower has behaved. Klein also looks at how a borrower has performed and managed through each situation. “We don’t like borrowers that don’t pay us back or pay others back,” Klein said.

When asked whether they were concerned in the long run with the low interest rates of today, Klein said that “Our lenders run a complex variety of exit scenarios,” adding that “Certainly given the huge maturing portfolio that we face in 2012 in particular, it’s a great concern.” Angle pointed out that it is more of a concern on the five-year loans versus the 10-year loans.

Next up was a panel titled: “Outside Influences: Where Things are Going,” moderated by Tom Bannon, CEO of California Apartment Association. Richard Hollowell, managing director of the Reznick Group, pointed out that single-family residential is troubled and is fueling multifamily. This year, Hollowell said, banks alone will foreclose 800,000 single-family homes. “Each one of those folks gets dumped in the rental community,” he said. Paul Habibi of UCLA also agreed that there is a huge demand for rental housing. “We have very little job formation,” he said. “In most gateway cities, the cost to rent is still significantly less than the cost to own.”

“If you look at the Gen Y coming through this cycle, there is a reason to be pretty bullish on multifamily,” said Jeffrey Meyers, principal of Meyers LLC. “I think you can really get behind multifamily and it will have a strong run.

Capital is now more focused on multifamily versus residential.” Meyers continued to point out that there were lots of funds created that were focused on distressed and single-family properties, but he has seen a decline lately in that focus. “The returns an investor needs on single-family are higher than in the multifamily arena.”

Sharon Dworkin Bell, senior staff vice president of National Association of Home Builders, said that it is also a great time to be building apartments. “The last quarter, we saw a bit of a plateau, but we expect it to rise. We see a lot of progress and increase in production, but we have a long way to go in terms of meeting the market equilibrium.”

When asked how useful low income housing tax credits are in this economy, Hollowell said that with construction costs lower than they have been in a long time, “people should be sharpening their pencils and see how this vehicle will work.” But she added that “it is not for the faint of heart.” Underwater multifamily projects are still a problem, Bell said. “There is damage out there, but lenders are probably being more cooperative with borrowers these days given the interest rates. The lenders are moving out the thresholds on some of these loans.”

Article written by Natalie Dolce for GlobeSt.com. To view the original article, click here.

Multifamily is Bright Spot in Still-Struggling Economy

renter nationAlthough the notion of “Renter Nation” might seem far-fetched, one thing is for sure: The apartment industry is at the starting point of a great run.

 

Attendees and speakers at the 2011 Multifamily Executive Conference, held Oct. 3-5, 2011, at the ARIA Hotel & Casino in CityCenter Las Vegas, were assertive in voicing their agenda on the future of multifamily, pointing to a run of development and transactional activity that will keep business solid until at least 2014, if not 2016.

Driven in part by the decline in single-family homeownership, a favorable supply/demand imbalance, and a compelling demographic story, multifamily is one of the few sectors of the real estate industry—nay, the whole economy—that has seen growth, positive revenue, and optimistic forecasts.

“Multifamily is the food group of choice among investors,” said Jeff Meyers, principal of RealFacts/Meyers, a housing research group based in Rancho Santa Fe, Calif., and one of the speakers on the conference’s annual economic roundtable. “The capital flows show that everyone is focused on multifamily.”

Highlights from the Show
Nearly 650 people were in attendance, up by more than 20 percent over the previous year. The event culminated with the naming of the MFE Executive of the Year. The 2011 recipient of the award was Mark Alfieri, chief operating officer for the multifamily platform at Dallas-based Behringer Harvard. In his acceptance speech, Alfieri focused on the contributions of his team in taking Behringer Harvard from a virtual unknown to one of the most well-regarded companies in multifamily Class A ownership today.

Other award winners at the Multifamily Executive Award Gala, held in conjunction with the conference, included: Kenneth Naylor, chief operating officer for Miami-based Carlisle Development, the second winner of the MFE Rising Star of the Year; as well as The Fitzgerald, a cutting-edge mid-rise property in Baltimore developed by The Bozzuto Group that won the Editor’s Choice Award.

In addition to the awards ceremony, the event included a custom research presentation about the behavior and preferences of online renters, presented by Doug Miller, president of SatisFacts. The survey, conducted in July 2011, offered a number of surprising takeaways about how to communicate with and market to residents. For example, 78 percent of residents have smart phones, yet only a fraction of managers communicate with residents via cell phone or text message. What’s more, residents say their preferred method of communication is far and away e-mail.

Miller also delved into the value of resident portals versus community social media efforts such as Facebook pages or Twitter accounts. Across the board, portals—particularly those where residents could pay rent without a convenience fee or submit service requests—were considered extremely valuable and important in the leasing decision process. Social media efforts were significantly less important. (You can download a summary of Doug’s presentation here .)

Interestingly, in the conference’s closing keynote, Tippingpoint chief strategy officer Andrew Davis focused on how to leverage social media effectively. Rather than focusing on multiple platforms, Davis suggested picking one platform and learning how to do that as effectively as possible. The keys to such success are to make sure the content being posted on the social media platform of choice is high-quality, frequent, and relevant. Only then will residents truly adopt and escalate the use of social media in the apartment industry—both of which are pre-requisites to being able to monetize social media. (You can view Andrew’s presentation here.) 

Zandi Predicts Double-Dip, though Multifamily is Safe
The conference’s opening and closing keynote luncheons included entertaining presentations by Moody’s chief economist Mark Zandi and, respectively.

Opening keynoter Zandi, who split his presentation in two, spent the first half “leading us into the darkness,” discussing the still-struggling economy, the debt crisis in the United States and Europe, and the woeful jobs outlook. The second half of the presentation, however, focused on the positive fundamentals and strong growth seen in the apartment sector. “But it’s still almost even odds that the economy is going to go downwards again,” Zandi said. “’We are still fighting a recession.”

Slowing the general economic growth and health of the country are three factors: 1) Rising energy prices; 2) continuing impact of the Japanese tsunami on manufacturing; and 3) weakened consumer confidence thanks to a decimated job market. “The most fundamental reason for optimism is the health of the private sector balance sheet,” Zandi added. “That’s why the question isn’t can corporations and businesses invest, but will they?”

Consumer and business confidence aside, there are other policies that Zandi points to as being pre-requisites for a recovery. First, the Fed needs to continue to ease monetary policy. Though he doesn’t predict that this will be a problem, Zandi pushed further, suggesting that a second round of QE funding was likely in order. Second, Zandi said that the country must reduce fiscal restraints, particularly by extending the payroll tax holiday that will expire at the end of this year. Finally, Congress has to follow through on the debt ceiling level, otherwise global investors will question our commitment to economic and fiscal health and once again reduce ratings on U.S. debt.

More granularly, Zandi believes that on the housing side of the equation, once the subsidies for single-family housing subside, it will be substantially more feasible and economically wise to rent versus buy. And the demographics support that push, particularly in major metros. “The Rosetta stone is global metropolitan areas, places that have foreign trade, capital, and immigration,” Zandi said. “These are the three drivers of markets with the greatest potential, particularly for urban real estate growth.”

Zandi concluded: “Is the job market as bad as we think it is? Yes. But the issue is not just the high rate of unemployment but the underemployment by a portion of the workforce. Once that eases, the outlook is especially favorable for [the apartment] sector.”

SAVE THE DATE
October 8-10, 2012
ARIA Hotel & Casino
Las Vegas

MISSED THE 2011 CONFERENCE?
Catch up on any session by clicking on a headline below:

General Sessions:
* 2011 Multifamily Executive Conference Highlights: A Slideshow

Article written by Shabnam Mogharabi for Multifamily Executive.com. To view the original article, click here.