Author: ipgocorp

(RECAP: Virginia Beach’s 25th Street development and an affordable housing project in the city have won annual Vision Awards from the Urban Land Institute of Virginia. The development turned the city’s 244-space surface parking lot into a 147-unit apartment complex, the iFly indoor sky-diving facility and a parking structure. The urban planning and development group awarded its innovative deal of the year to the $12 million Crescent Square affordable apartment complex in Virginia Beach. The 80-unit housing project from Richmond-based nonprofit Virginia Supportive Housing was built by Breeden Construction. Units are rented to adults earning no more than 50 percent of the area’s median income or to individuals who had been homeless.)

SAN FRANCISCO, CA – CIM Group announced that it has reached a major construction milestone – the topping out the 16-story high-rise building at its 350-unit One Mission Bay residential community located directly across the channel from SOMA at the doorstep of Mission Bay. One Mission Bay is comprised of 198 condominium residences in the high rise building and 152 condominium residences in a six-story mid-rise connected by a beautifully landscaped courtyard.

Set on two acres at 1000 Channel Street between 3rd and 4th Streets, the community features close to 650 feet of frontage along the waterfront, approximately 16,000 square feet of ground level retail, three levels of parking, abundant outdoor spaces, and an array of top-tier amenities for residents.

CIM Group began construction on One Mission Bay in October 2015. The company brings its extensive experience in condominium development to One Mission Bay that includes New York City’s 432 Park Avenue, an internationally recognized luxury high rise condominium that is the tallest residential tower in the western hemisphere.

At One Mission Bay, CIM is creating modern residences offering a desirable lifestyle option surrounded by green space. The project has been developed to maximize access to and views of the waterfront, while taking advantage of the large site to offer expansive private outdoor space for its residents. A range of floor plans provides comfortable and efficient units, from studios to three-bedrooms and a den, with abundant windows to capture the expansive views and natural light.

One Mission Bay is proximate to San Francisco’s popular shopping, dining, entertainment, and business centers. It has an exceptional location adjacent to AT&T Park, approximately eight blocks from the planned Golden State Warriors Sports and Entertainment Center, and is convenient to SoMa, Union Square, and the central business district. It also offers easy access to multiple transit options as it is steps from the Muni Metro Central Subway, which is anticipated to open in 2018, the King Street Caltrain Station, and the area’s regional freeway network.

CIM has been involved in the Greater Bay Area since 2001, when it identified communities located in the area as possessing the attributes that fit its investment strategy that focuses on established and emerging urban areas with solid infrastructure and transportation networks.

Other CIM investments in San Francisco include 330 Townsend, 260 Townsend, 246 1st Street, 211 Main Street, and Central Tower, a two-building office and retail complex located at 703 Market Street and 26 Third Street.

HONOLULU, HI – EdR, one of the nation’s largest developers, owners and managers of high-quality collegiate housing communities, announced it has started construction on a collegiate housing community adjacent to the University of Hawaii in Honolulu in a joint venture with Laconia Development. EdR will be the 90 percent owner and will manage the $110 million development upon completion.

This community will serve the pent up demand for modern collegiate housing as there are few student housing options and high barriers to entry. All entitlements have been obtained and construction is already under way with targeted delivery for Summer 2018 or 2019, depending on the speed at which the early phases of construction can be completed. 

“This is a great opportunity to add to our development pipeline, which is driving significant growth for EdR,” said Randy Churchey, EdR’s chief executive officer. “Assembling land with our partner, Laconia, in such a prime location in the city of Honolulu that the joint venture will own fee simple is a major feat and will allow us to bring modern off-campus living options to University of Hawaii students.”

The community will feature 599 beds in a mix of one, two, three, and four-bedroom floor plans; 13,000 square feet of ground floor retail and structured parking.  Rooftop amenities will include a fitness center, outdoor terrace lounge, community kitchen, study lounges and gaming areas – all with views of Waikiki, Diamond Head and Manoa Valley.

“We are very pleased to be partnering with EdR to bring a modern housing option to students at the Manoa Campus of the University of Hawaii,” said Paul Menzies, Laconia’s chief executive officer. “From the very beginning, we have been very impressed by EdR’s professionalism and history of outstanding accomplishment in collegiate housing.”

With an enrollment of nearly 19,000 students, the University of Hawai’i is ranked in the Top 50 of the nation’s public universities for Research and Development expenditures for the fiscal year 2014. It is 89th among public universities in U.S. News and World Report’s latest rankings. As the flagship institution of the University of Hawai’i System, approximately 35 percent of the student body is from out of state with students coming from across the world to seek the university’s nationally acclaimed academic programs in such fields as cancer research, genetics, astronomy, education and oceanography.

ORLANDO, FL – Robbins Electra, a national multifamily owner-operator, has purchased a 296-unit apartment complex in Orlando, Fla.  The asset, collectively known as Lake Ellenor, was acquired from Timbercreek Fund and will be rebranded as Enclave at Lake Ellenor.

The complex is now part of a portfolio of more than 21,000 units managed by Robbins Electra. It is the company’s 30th multifamily property acquisition in the past 12 months, totaling  over $1 billion in acquisitions.

“The Robbins Electra investment in Lake Ellenor is yet another signal of our long-term faith in the Orlando market, and another step in our plan to grow the company in solid markets throughout the south,” said Joe Lubeck, CEO of Robbins Electra. “Enclave at Lake Ellenor will be fully renovated and provide great amenities and living environments for working people in Orlando.”

Orlando was named one of “The Best Cities for Jobs” by Forbes in 2016, based on its rapidly growing population and job opportunities since 2010. Ranking as the 3rd best city, Orlando has seen a 4.6 % job increase within the last year.

Enclave at Lake Ellenor is composed of one-, two- and three-bedroom units in three-story buildings, with average monthly rents of approximately $900. The community offers a 24-hour fitness center, business center, and two swimming pools. Located at 2100 West Oak Ridge Rd., the complex is just south of Downtown and close to amusement parks, shopping malls and dining destinations.  The property is currently 95% occupied.

As part of its value-add repositioning plan, Robbins Electra will implement upgrades to the community’s interiors and amenities including a summer kitchen, pool furniture, dog park, landscaping upgrades, among others.

The firm recently announced the formal merger between Electra America and Robbins Property Associates. Together, Robbins Electra will continue to focus on the strategic acquisition of value-add multifamily properties in rapid-growth markets throughout the U.S. southeast and Texas, while continuing to focus on managing all aspects of the company’s extensive portfolio.

NEW YORK, NY – Mortgage rates continued their upward path this week, with the benchmark 30-year fixed mortgage rate rising to 4.13 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.

The larger jumbo 30-year fixed inched up to 4.09 percent, while the average 15-year fixed mortgage rate climbed to 3.39 percent. Adjustable mortgage rates were also higher, with the 5-year ARM rising modestly to 3.48 percent while the 7-year ARM rising to 3.66 percent.

Mortgage rates went up for the eighth time in nine weeks. They had been rising gradually for more than a month before the presidential election. After the election, they zoomed upward for couple of weeks and rose modestly this week. The Federal Reserve is almost certain to increase short-term rates in December, and the prospect of that rate hike has nudged mortgages a little higher. Even with this rapid rise in rates, more than half of mortgage applicants are homeowners who want to refinance before rates rise even further.

At the current average 30-year fixed mortgage rate of 4.13 percent, the monthly payment for a $200,000 loan is $969.88.

SURVEY RESULTS

30-year fixed: 4.13% — up from 4.10% last week (avg. points: 0.22)

15-year fixed: 3.39% — up from 3.33% last week (avg. points: 0.18)

5/1 ARM: 3.48% — up from 3.44% last week (avg. points: 0.35)

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

For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

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 panelists, 50 percent, forecast that rates will continue to rise in the coming week, while 20 percent expect rates to go down.  The remaining experts, 30 percent, predict that rates will remain more or less unchanged over the next seven days.

(RECAP: On November 16, HUD published in the Federal Register a final rule regarding the use of small area fair market rents (SAFMR) in certain metropolitan areas, and replacing HUD’s existing 50th percentile fair market rent (FMR) policy for the Housing Choice Voucher (voucher) program. SAFMRs reflect rent standards in zip code areas while traditional FMRs reflect a single rent standard for an entire metropolitan region. According to HUD, 50th percentile FMRs—the current policy for addressing high voucher concentration – have been largely ineffective. HUD expects that SAFMRs will better address high levels of voucher concentration in certain communities and give voucher holders access to areas of high opportunity by providing a subsidy that is adequate to cover rents in those areas. HUD also addressed concerns posed by NCSHA and others about using SAFMRs in low vacancy areas by exempting areas with vacancy rates of 4 percent or less.)

LOS ANGELES, CA – LMC, a leader in apartment development and operations, announced the start of leasing at The Highland Residences, a luxury boutique apartment community located along North Highland Avenue in eclectic Hollywood.

The mixed-use community, featuring 76 apartment homes and world-class amenities, is six stories and includes 4,300 square feet of ground-floor retail. Its rooftop boasts a swimming pool, fitness center and clubhouse in addition to expansive views of Hollywood Hills and Downtown Los Angeles.  

“With only 76 apartments homes, we will know every one of our residents on a first-name basis and will provide them with an unmatched personalized experience,” said J.J. Abraham, divisional president of the California Region for LMC. “This is luxury living at its finest in an eclectic neighborhood that is on the upswing as several prominent national companies begin to relocate to the area.”

Fender Musical Instruments Corp. set up shop in Hollywood in September, and Viacom and Netflix are among the additional popular companies in the process of relocating their national headquarters to the neighborhood. Netflix is set to double its office space by moving from Beverly Hills into The Icon at Sunset Bronson Studios sometime in 2017. The site is less than two miles from the community.

Situated at 1411 N. Highland Avenue, The Highland Residences benefits from a prime location that is both walkable and commuter-friendly. Hollywood Bowl and Hollywood & Highland are both less than two miles from the community, and Universal Studios is four miles to the north. The community is located just south of Sunset Boulevard, a few blocks north of Santa Monica Boulevard and a short drive from US Route 101, the gateway to downtown Los Angeles and many key destinations across the metropolitan area. A Metrorail station is within walking distance of the community.  

The Highland Residences, named a 2016 Gold Website winner by W3 Awards, consists of 1, 2, and 3-bedroom apartments with some 3-bedroom, 3-bathroom premium and penthouse homes available. The sixth-level is exclusively home to private penthouses, which include cutting-edge features such as mirror televisions with a full DirectTV lineup. The penthouses are also fully equipped with LMC Dream Suites by Lutron, a system that empowers residents to control their lights, shades and temperature through their mobile devices and the touch of a button.

Additional community amenities include an onsite pet park, outdoor fireplaces, barbecue grills and meticulous landscaping. Private technology-equipped co-work spaces are also available onsite. A state-of-the-art resident portal and app allow residents to pay rent, submit service requests and track packages from their computers or mobile devices. Other lifestyle enhancing services will include dry cleaning delivery, a home-delivery café, a pet-grass delivery service and weekly Pilates and yoga classes.

Apartment interiors contain high-end stainless steel appliances, quartz countertops, modern cabinetry, sleek hardwood-style flooring, spacious closets, in-home washers and dryers, designer kitchen and bath fixtures and glass-enclosed showers with a master suite view.

Including The Highland Residences, LMC has over 1,700 apartment homes planned or under construction in Southern California.

HOUSTON, TX – Reven Housing REIT announced that it has acquired a portfolio of 97 single-family homes in Houston, Texas.  The purchase price for the portfolio was approximately $9,091,000, exclusive of closing costs.  The Company funded the purchase by utilizing proceeds from its most recent public offering. 

As part of the initial closing of the public offering the Company up-listed to NASDAQ in September 2016.

The acquired properties average 1,482 square feet and are mostly three-bedroom, two bath homes.  Of the acquired properties, 55 are currently subject to one-year leases, 5 are vacant, and 37 are subject to month-to-month leases. 

Chad M. Carpenter, Chairman and Chief Executive Officer of Reven, commented, “We are very pleased with our new portfolio acquisition of homes in Houston. This market has proved to be one of our strongest markets. Reven now owns 624 homes in the southeast U.S., primarily in Houston, Jacksonville, Memphis and Atlanta.”

Michael Soni, Senior Investment Advisor who is in charge of acquisitions for Reven states, “This portfolio of homes is similar to, and complements, our existing portfolio. This acquisition increases our total portfolio of homes in Houston to 265.”

Reven Housing REIT (NASDAQ: RVEN) engages in the acquisition and ownership of portfolios of occupied single family rental properties in the United States. RVEN currently owns and operates SFR’s in Florida, Georgia, Mississippi, Tennessee and Texas.

(RECAP: The election has brought a dark cloud of uncertainty over the low-income housing tax credit (LIHTC) market. With Donald Trump moving into the White House with a Republican-controlled House and Senate, the prospects of tax reform have shot up dramatically. That’s heightened concerns that the LIHTC program could be significantly hampered, or even eliminated, under asweeping tax reform effort. Specifically, Trump has called for slashing the business tax rate from 35% to 15%. That’s pushed investors and syndicators to calculate what such a move would mean to their investments and how to get new deals done.)

WASHINGTON, DC – The Multifamily Production Index (MPI), released by the National Association of Home Builders (NAHB), posted a gain of three points to 53 in the third quarter. The MPI has been at 50 or above since the beginning of 2012.

The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale” units, or condominiums. All three components increased in the third quarter. Low-rent units rose two points to 54, and market-rate rental units and for-sale units both increased four points to 57 and 59, respectively.

The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry’s perception of vacancies, remained unchanged at a reading of 42, with lower numbers indicating fewer vacancies. After peaking at 70 in the second quarter of 2009, the MVI improved consistently through 2010 and has been fairly stable since 2011.

“Overall, multifamily developers remain positive about the market,” said Andrew Chaban, CEO of Princeton Properties in Lowell, Mass., and chairman of NAHB’s Multifamily Council. “However, in some areas of the country developers have to overcome challenges of labor and lot shortages to meet demand.”

“This quarter’s MPI reading is consistent with our projection that the multifamily housing sector will have a strong year in 2017,” said NAHB Chief Economist Robert Dietz. “The multifamily sector has led the housing recovery and should continue to be supported by favorable demographics.”

Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.

For data tables on the MPI and MVI, visit www.nahb.org/mms.