Author: ipgocorp

FALLS CHURCH, VA – Lincoln at Tinner Hill, Falls Church’s brand new live-work-play apartment community, opened in late September after much anticipation. Located on a historic landmark, Lincoln at Tinner Hill balances the old with the new, anchored by the Civil War Memorial Arch located on the corner of the brand new community.

The fifteen foot, pink granite arch was erected by the Tinner Hill Heritage Foundation honoring African Americans, E.B. Henderson and Joseph Tinner, a direct descendent of Tinner Hill’s founders. E.B. Henderson and Joseph Tinner fought for civil rights, helping found the first rural branch of the NAACP in the early 1900s.

Lincoln Property Company, the project developers, took great care and caution to protect the integrity of the historic landmark all while providing luxury apartment accommodations that enhance the surrounding area. The modern apartment homes, located at 455 S. Maple Ave, allow walkability to over 50,000 sf of onsite retail in addition to shops, restaurants, and local entertainment.

The urban mid-rise offers a vast amenity package, featuring a swimming pool, 24-hour fitness center, virtual yoga studio, car-charging station, lounge, game room, business center, multipurpose room, pet spa, on-site bike storage and repair center in addition to courtyards with lush landscaping. The apartment interiors showcase Lincoln at Tinner Hill’s modern feel with granite countertops, stainless steel appliances, front loading washers and dryers, wide plank engineered hardwood flooring and balcony space.

Lincoln at Tinner Hill offers a wide variety of one and two bedroom floor plans and is under the professional management of Lincoln Property Company, the second largest multifamily manager in the United States, overseeing over 170,000 units.

Headquartered in Dallas, TX, Lincoln focuses on real estate investment, construction and development, in addition to property management. Their national reputation has enabled Lincoln to attract a large client base of owners and investors who count on their ability to deliver quality results and continually serve as a market leader.

SEATTLE, WA – Home values are up over 6 percent over the past year, to a Zillow Home Value Index (ZHVI) of $191,200, according to the October Zillow Real Estate Market Reports.

Home values across the country have been rising for more than four years. Due to low inventory, prospective buyers often face intense competition. Less than half of buyers are successful in purchasing the first home they make an offer on, according to the Zillow Group Consumer Housing Trends Report.

Despite unfriendly market conditions for buyers, housing experts predict things will change in the near future – the majority of experts surveyed in the latest Zillow Home Price Expectations Surveyiii said they expect the housing market to shift from a seller’s market to a buyer’s market in 2018 or 2019. Zillow forecasts home values to slow to a 3 percent appreciation rate by next October.

“The housing market has been favoring sellers for the past few years,” said Zillow Chief Economist Dr. Svenja Gudell. “Sellers in the current housing landscape often have the luxury of listing their home ‘as-is’ without fixing it up or with only minimal window-dressing since demand for homes has been high and inventory low. It’s common for sellers to receive multiple bids, and in the hottest markets, sell for over asking price, but these conditions will change in the future. As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years.”

Portland, Dallas and Seattle reported the highest year-over-year home value appreciation among the 35 largest metros across the country for the third month in a row. Home values in Portland rose almost 15 percent to a median value of $349,500. Dallas and Seattle home values have appreciated just over 12 percent since last October.

Rents across the nation are up 1.4 percent, to a median rent payment of $1,402 per month. Seattle, Portland and Sacramento reported the highest year-over-year rent appreciation among the 35 largest U.S. housing markets. Rents in Seattle are up 9 percent to a Zillow Rent Indexiv (ZRI) of $2,087. Rents in Portland and Sacramento are up 7 and 6 percent, respectively.

There are 6 percent fewer homes for sale across the country than a year ago, with Boston, Indianapolis and Kansas City reporting the greatest drop in inventory among the 35 largest U.S. metros. In Boston there are 26 percent fewer homes to choose from than a year ago, and 24 percent fewer in Indianapolis.

BELLAIRE, TX – Five Star Quality Care, one of the nation’s leading senior living and healthcare services providers which does business under the name “Five Star Senior Living”, announced the addition of memory care apartments at The Gardens of Bellaire in Bellaire, Texas.

Five Star’s award winning Bridge to Rediscovery (BTR) program is an innovation leader in memory care, catering to the unique capabilities and interests of each resident while encouraging family involvement every step of the way. The program is research based and designed for individualized attention to those with Alzheimer’s and other forms of dementia.

“We are excited to bring The Bridge to Rediscovery program to the Gardens of Bellaire. The new neighborhood is arranged to meet the specific needs of each resident by forming an individualized plan that builds on strengths and capabilities. The Montessori-based dementia programming provides residents with tremendous opportunities for success and happiness not only for themselves, but for their families as well,” said Scott Herzig, Five Star’s Chief Operating Officer.

Five Star Senior Living operates over 270 Independent Living, Assisted Living, Alzheimer’s/Memory Care, and Healthcare Centers with Skilled Nursing & Rehabilitation and Continuing Care Retirement Communities across the country. Five Star is headquartered in Newton, Massachusetts.

(RECAP: Up to $20 million could be pumped into residential housing projects in Marion by 2018 with the town seeing the greatest housing development since the 1980s and perhaps even since the post-World War II boom. That potential comes as encouragement to Marion officials who see housing needs as one of the most critical issues facing the community. Marion Redevelopment and Housing Authority executive director Charlie Harrington presented the first stages of a project to help address housing. He was asking the council to give its OK to the authority’s plan to form a non-profit LLC to seek grants to do an in-depth marketing survey and eventually develop a new housing complex featuring one-, two- and three-bedroom units to serve mixed-income residents, generally falling at 80 to 100 percent of low to moderate income levels based on Smyth County’s median income of $48,000. The council gave its approval to forming the non-profit LLC as a subset of the housing authority. The project is in early stages, still researching funding and site options.)

TAMPA, FL – Eagle Property Capital Investments announced the acquisition of Captiva Club, a 344-unit multifamily property located in Tampa, FL. The Property was acquired by EPC Multifamily Partners III, a private investment vehicle raised and managed by EPC. The Property represents the fourth acquisition for Fund III.

Tampa has one of the strongest fundamentals in the United States in terms of population, job, household income, and economic growth. The Tampa MSA has experienced the fourth highest employment growth rate in the nation, growing by 24.0% since 2009. The Property is conveniently located within the Westshore submarket with excellent infill location and proximity to abundant employment, recreation, shopping and entertainment venues supporting a “Live, Work, Play” lifestyle. With 12.75 million square feet of office space, Westshore is one of Florida’s largest office markets and home to over 4,000 businesses and over 93,000 employees. Additionally, there are 6 million square feet of retail space, including two regional malls, 40 hotels and over 250 restaurants. The Tampa International Airport is just minutes away from the Property.

EPC will execute a value add strategy to reposition the Property as “best in class” by making improvements and additional capital investments to exteriors, completing interior upgrades and improving amenities.

The acquisition was partially financed by an agency mortgage loan with a ten-year fixed interest rate, utilizing an innovative green financing program where EPC commits to reducing water or electricity consumption at the Property by implementing green initiatives.

“We have had our eyes on Tampa for some time as part of our plan to expand into top high growth markets”, said Rodrigo Conesa, Partner at Eagle Property Capital Investments. “Captiva Club is an exceptional opportunity and a terrific way to enter the Tampa market in a highly sought after location on Westshore. We expect strong apartment fundamentals in Tampa to continue for a number of years. Our scalable platform will continue to facilitate our expansion”, Mr. Conesa continued.

Fund III acquires repositions, rents and manages a portfolio of quality class B and C multifamily apartment communities in top growth metropolitan areas of the southern United States. With the acquisition of the Property, Fund III now has a portfolio of 1,103 apartment units in Florida and Texas.

SANTA ANA, CA – First American Financial Corporation, a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, released the September 2016 First American Real House Price Index (RHPI). The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time and across the United States at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.

September 2016 Real House Price Index

Real house prices increased 1.0 percent between August 2016 and September 2016

Compared to September 2016, real house prices decreased by -2.0 percent.

Unadjusted house prices are expected to increase by 5.3 percent in September on a year-over-year basis.

Real house prices are 40.4 percent below their housing-boom peak in July 2006 and 19.9 percent below the level of prices in January 2000.

Unadjusted, the national price level is 0.9 percent away from the housing-boom peak in 2007.

Chief Economist Analysis: Wage Growth Offsets Impact of September Interest Rate Surge, Contributing to Increased Affordability in Most Major Markets

“While a small uptick in rates in September caused an increase in real house prices compared to August, it is important to remember that mortgage rates remain at historically low levels. The low rates, combined with recent meaningful income gains, fueled an increase in consumer house-buying power, meaning affordability is at a quarter-century best,” said Mark Fleming, chief economist at First American. “Even as interest rates increase above 4 percent post-election, housing, on a purchasing-power adjusted basis, will continue to be more affordable than it was in the early 1990s.

“The 2017 conforming loan-limit increase announced last week was prompted by the fact that house prices have surpassed the pre-decline level established in the third quarter of 2007, according to the FHFA index,” said Fleming. “Nominally, the price recovery is officially complete, but in real purchasing-power adjusted terms, house prices are still far below the pre-decline peak. The underlying story is consumer house-buying power is better than it has been in a generation.

“Affordability continues to increase in more markets than it is decreasing, including markets considered by many to be over-valued, like San Francisco, San Jose, New York, Washington and Boston. Conventional wisdom overlooks the impact that rising incomes can have on consumer house-buying power in a low-rate environment. Long-awaited increases in income levels are contributing to falling real house prices in many markets,” said Fleming.

NEW YORK, NY – New construction starts in October decreased 4% to a seasonally adjusted annual rate of $678.9 billion, settling back from the elevated amount that was reported in September, according to Dodge Data & Analytics. Nonresidential building retreated from its brisk September pace, which was this sector’s strongest volume so far in 2016. October’s level for nonresidential building was still healthy compared to what’s been reported for much of 2016 – while down 12% from its average for August and September, it remained 15% above its lackluster average for this year’s first seven months. Residential building in October showed moderate growth, with contributions from both single family and multifamily housing. Nonbuilding construction in October edged up slightly, as an increase for public works offset diminished activity for electric utilities/gas plants. The public works sector in October benefitted from the start of the $1.7 billion Mid-Coast Corridor Transit Project in San Diego CA and the $850 million State Highway 288 Tollway project in the Houston TX area. For the first ten months of 2016, total construction starts on an unadjusted basis were $572.0 billion, down a slight 1% from the same period a year ago. If the volatile manufacturing plant and electric utility/gas plant categories are excluded, total construction starts during this year’s January-October period would be up 3%.

October’s data produced a reading of 144 for the Dodge Index (2000=100), compared to 149 in September and 152 in August. The quarterly averages for the Dodge Index in 2016 show the first quarter at 149, the second quarter at 138, and the third quarter at 142, with the average over the first nine months of the year coming in at 143. October’s pace for total construction starts, while down from August and September, is still up from the third quarter.

“After a sluggish second quarter, the pace of construction starts picked up during the third quarter, and on this basis October is at least maintaining recent improvement,” stated Robert A. Murray, chief economist for Dodge Data & Analytics. “While there was concern earlier in 2016 that the often hesitant expansion for construction could be stalling, the generally stronger activity in August, September, and now October eases those concerns. Furthermore, the year-to-date comparisons have strengthened as 2016 has proceeded, with total construction starts now down just 1% through the first ten months of this year. This compares with the 3% decline at the nine-month mark, the 7% decline at the eight-month mark, and the 11% decline at the seven-month mark.  Aside from stronger activity during the most recent three months, the year-to-date comparisons are benefitting from last year’s pattern for total construction starts, which showed weaker activity in the second half. The first half of 2015 had been lifted by 13 very large projects valued each at $1 billion or more, while last year’s second half saw only three such projects reach the construction start stage.”

“On balance, the current year is turning out to be one where the overall level of construction starts is at least holding steady,” Murray continued. “Supportive elements are moderate job growth, generally healthy market fundamentals for commercial real estate, and the funding coming from the state and local bond measures passed in recent years. Going forward, the continued expansion for construction should be helped by the November 2016 passage of such bond measures as the $9 billion Proposition 51 in California for school construction, and the emphasis of the incoming Trump Administration on increased spending for infrastructure.”

Nonresidential building in October fell 16% to $236.9 billion (annual rate), following gains in August (up 40%) and September (up 5%). The commercial building categories as a group were down 25% after surging 37% in September which reflected an especially strong month for new office projects. October showed a 46% decline for office construction, following its 147% hike in September which featured the start of two massive office towers in New York City – the $2.0 billion 3 Hudson Yards Boulevard office building on Manhattan’s west side and the $1.5 billion One Vanderbilt Tower near Grand Central Station. While not the same scale as what took place in September, October did see the start of several large office projects, including the $700 million Gotham Center Towers in Long Island City NY, a $250 million Facebook data center in Los Lunas NM, and a $190 million office building in Denver CO. Warehouse and store construction registered similar declines in October, sliding 10% and 11% respectively, although the warehouse category did include the start of a $165 million Amazon distribution center in Jacksonville FL. On the plus side, hotel construction grew 10% in October, helped by $141 million for the hotel portion of the $170 million Great Wolf Lodge Water Park Resort in LaGrange GA. Commercial garage construction jumped 29% in October, reflecting the start of a $300 million consolidated car rental facility at the Honolulu HI International Airport.

The institutional building categories as a group dropped 21% in October, following a 9% gain in September and a 21% hike in August. The educational facilities category fell 19%, although October did include these projects – the $160 million renovation and expansion of the Philadelphia Museum of Art in Philadelphia PA, a $125 million science and engineering research facility at the University of Texas at Arlington, and the $93 million renovation of the Museum of Modern Art in New York NY.  Healthcare facilities plunged 47% after being lifted in September by the start of eight healthcare facilities valued each at $100 million or more. In contrast, October included just four such projects, led by the $300 million New York Methodist Hospital expansion in Brooklyn NY. Of the smaller institutional categories, declines were reported in October for amusement-related work, down 4%; religious buildings, down 12%; and transportation terminals, down 15%. The public buildings category in October registered a 16% gain, reflecting $100 million for phase 2 of the San Ysidro Border Station in San Ysidro CA. The decline for total nonresidential building in October was cushioned by a 250% surge for the manufacturing plant category, boosted by the start of a $1.4 billion ethylene plant in Louisiana.

Residential building, at $289.6 billion (annual rate), grew 6% in October. Single family housing advanced 6%, strengthening after a 3% decline in September. By geography, single family housing in October showed increases in all five major regions – the South Central, up 10%; the Midwest, up 9%; the Northeast, up 6%; the West, up 4%; and the South Atlantic, up 3%. Multifamily housing in October climbed 5%, strengthening moderately after an 18% slide in September. There were 11 multifamily projects valued at $100 million or more that reached groundbreaking in October (compared to five in September), led by a $275 million apartment building in Miami FL, a $218 million apartment building in Queens NY, and a $200 million condominium building in Sunny Isles Beach FL. Through the first ten months of 2016, the top five metropolitan markets ranked by the dollar amount of multifamily starts were – New York NY, Los Angeles CA, Miami FL, Chicago IL, and Washington DC. Metropolitan areas ranked 6 through 10 were Dallas-Ft. Worth TX, Boston MA, San Francisco CA, Atlanta GA, and Seattle WA.

Nonbuilding construction in October increased a slight 1% to $152.4 billion (annual rate), as a 21% gain for public works balanced a 46% drop for electric utilities/gas plants. The public works advance was led by a 168% surge for the “miscellaneous public works” category, which featured the start of the $1.7 billion Mid-Coast Corridor Transit Project in San Diego CA, which will extend trolley service in the San Diego area. Highway and bridge construction in October slipped 4% after rising 16% in September which reflected the boost coming from the $916 million segment of the Loop 202 (South Mountain Freeway) project in the Phoenix AZ area. October did include the start of the $850 million State Highway 288 Tollway project in the Houston TX area. The environmental public works categories weakened in October, with sewer systems down 8%, water supply systems down 14%, and river/harbor development down 19%. The 46% drop for electric utilities/gas plants in October followed a sharp 219% increase in September, although October still included the start of several large projects, such as a $450 million wind farm in Missouri.

The 1% retreat for total construction starts on an unadjusted basis for the January-October period of 2016 came as the result of a varied pattern by major sector. Nonresidential building year-to-date matched the same period a year ago, with commercial building up 10%, institutional building even with last year, and manufacturing building down 36%. Residential building year-to-date rose 5%, with single family housing up 7% and multifamily housing up 1%. Nonbuilding construction year-to-date fell 11%, with public works down 3% and electric utilities/gas plants down 28%. By geography, total construction starts during the first ten months of 2016 showed this performance relative to a year ago – the Midwest and West, each up 7%; the South Atlantic, up 6%; the Northeast, down 3%; and the South Central, down 18% (due to this region’s comparison to last year which included the start of several massive liquefied natural gas export terminals).

(RECAP: The FHFA today announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2017 will increase. In most of the country, the 2017 maximum loan limit for one-unit properties will be $424,100, an increase from $417,000. This will be the first increase in the baseline loan limit since 2006. In higher-cost areas, higher loan limits will be in effect. The Housing and Economic Recovery Act of 2008 (HERA) established the baseline loan limit of $417,000 and requires this limit to be adjusted each year to reflect the changes in the national average home price. However, after a period of declining home prices, HERA made it clear the baseline loan limit could not rise again until the average U.S. home price returned to its pre-decline level. Until this year, the average U.S. home price remained below the level achieved in the third quarter of 2007. The expanded-data HPI value for the third quarter of 2016 was roughly 1.7 percent above the value for the third quarter of 2007, and thus the baseline loan limit will increase by that percentage.)

DALLAS, TX – Holliday Fenoglio Fowler (HFF) announced that it has arranged $33.5 million in permanent financing for The Hamptons, a 668-bed, cottage-style student housing community serving Georgia Southern University in Statesboro, Georgia.

HFF worked exclusively on behalf of IMS Development to secure the 10-year, fixed-rate loan through a national bank.

Delivered in fall 2015, The Hamptons offers 117 Tudor-style cottages and 120 residential flats.  The cottages have a mix of two-, three-, four- and five-bedroom floor plans with one- and two-bedroom apartment-style flats also available within the gated community.  Each cottage and flat includes a washer and dryer, private bathroom for every bedroom, walk-in closets, stainless steel appliances and granite countertops.  

The community features a 10,000-square-foot clubhouse with a café, business center, resident study room, fitness center, steam rooms, cardio room with Fitness on Demand™, game room, bicycle rentals and tanning beds.  Other amenities include a resort-style swimming pool with an 80-yard lazy river, sand volleyball court, bocce ball court, two dog parks and separate study lounge.  Located near the intersection of South Main Street and Rucker Lane, the property is within walking distance to campus.

The HFF debt placement team representing the developer was led by director Jeremy Sain.

IMS Development (IMS) is led by H. Jackson Wallace and Bill Trick.  IMS exists to create exceptional developments that enhance the lives of its residents and partners. Currently, IMS owns and manages properties across three states in the southeast.  Combined, the principals have more than 58 years of experience in the real estate business.

ORLANDO, FL – The Florida housing market reported higher median prices and fewer all-cash sales in October, according to the latest housing data released by Florida Realtors. Shortfalls in inventory continued to impact sales statewide: Single-family home sales totaled 20,194, down 5.3% from October 2015, while townhouse-condo sales totaled 7,955, down 12.3 percent compared to a year ago.

“Florida’s housing market continues to experience fewer sales of distressed properties and a restricted supply of homes for sale,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “A shortage of new listings could impact home sales in the long run. When you look at the state’s tight inventory of homes and a decline in the median time it takes for a home to sell (go under contract), it shows buyers are still in the market. However, they’re not finding as many potential options as they’d like.”

Home sellers continued to get more of their original asking price at the closing table in October: Sellers of existing single-family homes received 96.1 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $220,000, up 11.7 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in October was $161,000, up 8.1 percent over the year-ago figure.

In October, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 59th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in September 2016 was $235,700, up 5.6 percent from the previous year; the national median existing condo price was $222,100. In California, the statewide median sales price for single-family existing homes in September was $514,320; in Massachusetts, it was $350,000; in Maryland, it was $266,294; and in New York, it was $250,000.

Closed sales data reflected fewer short sales and cash-only sales in October: Short sales for single-family homes declined 39.4 percent while short sales for townhouse-condo properties dropped 37.2 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“It’s hard to say at this point what may be behind the weaker sales numbers in October – trends are difficult to spot based on one-month’s worth of data,” said Florida Realtors® Chief Economist Brad O’Connor. “While it’s tempting to consider the possibility that Hurricane Matthew or the imminent (at that time) presidential election played a major role in October’s sales figures, let’s remember the typical property sale that closed in October probably went under contract a month or two prior. And in the particular case of Matthew, the decline in October’s sales did not uniformly appear to be any worse along the Atlantic coast than anywhere else in the state.

“Of course, a limited supply of for-sale homes, coupled with rising median prices, are two factors to consider when looking at closed sales data.”

Inventory dipped to a 4.2-months’ supply in October for single-family homes and was at a 5.9-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.47 percent in October 2016, significantly lower than the 3.80 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.