Author: ipgocorp

TALLAHASSEE, FL – Wendover Housing Partners, a privately held real estate development, investment and management company, announced it is breaking ground on Kenwood Place, an affordable, senior apartment community in Tallahassee, FL. Construction on the 112-unit community, located at 420 Junco Court, began in spring 2016. With the first residents expected to move in during February 2017, Kenwood Place will provide financial relief to Leon County’s growing population of income restricted seniors ages 55 and up.

“When we decide to build a new senior housing community, the Wendover team looks at areas where the need is greatest. With its mild weather and tightknit community, Tallahassee is one of the country’s retirement hotspots,” said Jonathan L. Wolf, President and Founder of Wendover Housing Partners. “The majority of Leon County’s senior population is healthy and independent with no mobility or self-care restrictions. Wendover hopes to provide these seniors with a safe and active community to call home at an affordable price.”

Priced below Tallahassee’s average rental rate of $814, each Kenwood Place unit features a full-size washer and dryer, a monitored emergency call system, and a fully equipped kitchen including a dishwasher, microwave, island and pantry. Designed with senior comfort and safety in mind, the open and spacious floor plans also provide ample storage space with walk-in and linen closets.

“Wendover believes that fostering and maintaining a sense of community is just as important as what our apartments look like, especially at our senior properties where residents have much more free time on their hands,” added Wolf. “We provide plenty of indoor and outdoor areas for our residents to socialize and make new friends, as well as free events hosted by our staff. Kenwood Place residents will also be able to enjoy time for themselves in our fitness center, outdoor garden, swimming pool, computer room, community room and more.”

BAYTOWN, TX – Drever Capital Management (DCM) has acquired Aria at Rollingbrook, a 240-unit Class A apartment community previously known as Watercolor, a half-mile from ExxonMobil Baytown, the largest petrochemical plant in the U.S., and adjacent to Chevron Phillips 66 Chemical’s joint-venture Cedar Bayou facility in Houston’s booming Baytown submarket.

DCM, which recently acquired the iconic First National Bank Tower at 1401 Elm Street in downtown Dallas, purchased Aria at Rollingbrook at 1700 Rollingbrook Drive, Baytown, from The Leyendecker Group of Houston. The price was not disclosed.

“This is more than an acquisition of a year-old Class A stabilized apartment community with an excellent I-10 location and a high 90% occupancy,” explains Noah Drever, senior managing director of Drever Capital. “It is a strategic investment for our fund in one of Houston’s strongest suburban economies that’s driven by the downstream petrochemical sector.”

Drever said Baytown’s Gulf Coast location, between Galveston and the Port of Houston Ship Channel, means that Aria residents working in engineering, industrial construction or maintenance can choose from over 120 petrochemical employers in East Harris County without getting bogged down in long commutes. “Residents can also put down roots and not have to relocate when they complete a project or assignment,” he noted.

Baytown alone is the home of over 20 petrochemical facilities including the nation’s biggest petrochemical plant ExxonMobil Baytown which consists of four separate facilities. “We’re well positioned to attract some of the 4300 employees and personnel maintaining the plant,” said Drever. “Additionally, the Chevron Phillips 66 Chemical plant, with its $6 billion construction campaign, will generate approximately 500 jobs annually during the next six years on top of an existing 9,000 employee base.”

Drever discussed the upcoming renovation program and upgrades designed to enhance the overall community and resident experience. “Our residents are hardworking people who also want a quality lifestyle plus great value and personalized services for their money while our investors want safe and socially responsible returns.”

Drought-tolerant irrigation and landscaping will be added throughout to create a park-like retreat and add recreation space, contends Drever. A commercial-grade outdoor kitchen/bar will be incorporated into the pool area. In response to resident demand, interior upgrades will include granite kitchen countertops, and E-Star appliances and washer/dryer in each unit.

Drever Capital Management, which won the 2016 Information Management Network commercial real estate Social Responsibility Award, is continuing to live up to its motto of “Doing Well by Doing Good” by offering monthly rent discounts to teachers and educators, firefighters and police officers, medical workers, and active and former military personnel. The new owner is also donating an apartment in Aria to a Baytown police officer.

Explains Barbara Moffitt, regional vice president of operations: “Our residents are dedicated middle class working people who go the extra mile for all of us in the community everyday so we create programs to repay them, to give back.”

The acquisition was brokered by Clint Duncan, senior vice president-investment properties of CBRE’s Houston office who represented the seller. Tom Cabibi, director of Acquisitions for Drever Capital, represented the buyer.

“This was a complex deal that was fully marketed nationwide but Noah Drever stepped up to the plate, signed a pre-negotiated ‘as is’ contract and executed on the spot with no delays, without going through batteries of lawyers, and shaving three weeks off the contract negotiating process.” said Duncan. “Noah and his team had done their deep due diligence quickly and thoroughly, they were open to feedback, took direction from us, did exactly what they said they would do and exercised real patience with the seller. Patience was the key to this transaction.”

Duncan also said Baytown’s growth, coupled with an expansion at the Port of Houston and the export of downstream petrochemical products will ensure a demand for top-tier apartment and single family housing for years to come.

Population projections are exceptionally bullish, according to B.J. Simon, associate director of Baytown Economic Development Foundation. Growth ranged from 78,000 in 2010 to 86,000 in 2016 to 90,000 in 2019. Most of the influx are industrial construction workers. “Over the life cycle of the two megaprojects—ExxonMobil and Chevron Phillips, 22,000 people will have worked at those facilities,” he said. “The rule of thumb is that 15% of the workers will be retained, remain in the market, work with other construction contractors along the Gulf Coast and be deployed to other projects in the area.”

The increasing global demand for plastics will be heavily supplied out of Baytown petrochemical plants, notes Professor Bill Gilmer, Ph.D., director of the Institute for Regional Forecasting at the University of Houston’s C.T. Bauer College of Business. “These huge downstream plastics plants will turn out railcar after railcar of plastic pellets that  will be deployed nationwide to every manufacturing plan that turns out plastic parts for, say, cars or toys or anything that uses plastics in a finished product.”  

The City of Baytown has been gearing up for the surge in skilled workers, contends Mayor Stephen DonCarlos. “Mobility issues are being addressed with new roads and boulevards that open up new areas to development. Regarding public safety, we’ve added more police officers, firefighters and paramedics to reduce response time.

“The City Council has encouraged quality over quantity in development of both multifamily and single family dwellings,” he added. “Employment opportunity is everywhere and proximity to Houston, with its sports, entertainment, shopping and restaurant scene and distances to Intercontinental and Hobby airports can be measured in minutes.”

Indeed, residents can find almost everything they want in Baytown, added Mayor DonCarlos. The city now has two Walmarts, the redeveloped Baytown Mall, Kroger Marketplace, a new HEB store, the city-owned Pirates Bay Waterpark, while a new little theatre is under construction and Max Bowl is being expanded.

Drever Capital Management and its principals have been impact investors in multifamily and senior housing communities since 1968 and have built or redeveloped 170,000 workforce apartments valued at over $20 billion.

NEW ORLEANS, LA – 365 Connect, a leading provider of award-winning marketing, leasing, and resident technology platforms for the multifamily housing industry, announced today that the company has received a gold Marcom Award for its Marketing Syndication Platform. This prestigious international award recognizes 365 Connect’s capabilities to deliver innovative and creative solutions to meet the rapidly-changing needs of the multifamily housing industry.

The Marcom Awards is an international creative competition that recognizes outstanding achievement by marketing and communication professionals. The winning entries are selected by an international panel of judges. This year’s competition boasted over 6,000 entries from 34 countries across the globe, with entrants ranging from corporate marketing and communication departments, to media conglomerates and Fortune 500 companies. The competition is so well respected in the industry that it has grown to the largest of its kind in the world.

365 Connect was recognized by the Marcom Awards for its innovative Marketing Syndication Platform, which delivers automated listings with real-time updates to high-traffic housing search engines and classified websites. Ultimately, it offers a fully-integrated solution that eliminates redundant marketing efforts and seamlessly updates pricing, imagery, content, and availability from a single platform. The platform is proven to reduce operating expenses while simultaneously increasing qualified prospect traffic for multifamily housing operators.

Administered and judged by the Association of Marketing and Communication Professionals, which oversee awards and recognition programs, winning entries are selected from an array of specialized categories. These include advertising, marketing, branding, strategic communication, and electronic media. Recognizing the highest standards of excellence, a Marcom Award is a tremendous achievement that acknowledges outstanding talent within the marketing and communication industries.

365 Connect Founder and CEO, Kerry W. Kirby, stated, “365 Connect is pleased to have its technology platform acknowledged on an international level, and we are truly honored to receive this highly acclaimed award. Our focus is to connect both future and existing residents with where they live by providing a host of services, resources, and communication tools. This award emphasizes our dedication to meeting our clients’ needs of optimizing lead flow, reducing marketing spend, and extending their communities reach across the web.”

To date, 365 Connect has received a total of 42 national and international awards, symbolizing its dedication to delivering leading-edge technology. The 365 Connect Technology Platform is highly recognized by its peers for its unique ability to market communities across the Internet, automate social media, and deliver services on any device to prospects and residents. Today, 365 Connect’s innovative technology platforms are utilized across the nation, aiding the most respected multifamily housing operators by providing them with the ability to manage their marketing, leasing, and resident services from a single sign-on interface.

MCLEAN, VA – Freddie Mac released its Multi-Indicator Market Index (MiMi), showing three additional states, Indiana, Alabama and New Jersey, and one additional metro area, Dayton, Ohio, entering their historic benchmark levels of housing activity.

The national MiMi value stands at 85.7, indicating a housing market that’s on the outer edge of its historic benchmark range of housing activity with a +1.05 percent improvement from July to August and a three-month improvement of +1.22 percent. On a year-over-year basis, the national MiMi value improved +5.44 percent. Since its all-time low in October 2010, the national MiMi has rebounded 43 percent, but remains significantly off its high of 121.7.

News Facts:

Forty-one of the 50 states plus the District of Columbia have MiMi values within range of their benchmark averages, with Utah (99.2), Colorado (96.6), Hawaii (96.3), Idaho (96) and North Dakota (95.4) ranking in the top five with scores closest to their historical benchmark index levels of 100.

Eighty of the 100 metro areas have MiMi values within range, with Los Angeles, CA (101.1), Honolulu, HI (99.5), Provo, UT (100.8), Dallas, TX (98.9) and Ogden, UT (98.6) ranking in the top five with scores closest to their historical benchmark index levels of 100.

The most improving states month over month were Nevada (+2.95%), Florida (+2.14%), Illinois (+1.95%), Washington (+1.91%) and Alabama (+1.90%). On a year-over-year basis, the most improving states were Florida (+12.13%), Massachusetts (+9.94%), Nevada (+9.94%), Oregon (+9.43%) and Tennessee (+9.39%).

The most improving metro areas month over month were Las Vegas, NV (+3.00%), Palm Bay, FL (+2.63%), Tampa, FL (+2.59%), Orlando, FL (+2.40%) and Sarasota, FL (+2.40%). On a year-over-year basis, the most improving metro areas were Orlando, FL (+18.21%), Tampa, FL (+14.78%), Chattanooga, TN (+14.51%), Palm Bay, FL (+14.25%) and Lakeland, FL (+13.66%).

In August, 33 of the 50 states and 73 of the top 100 metros were showing an improving three-month trend. The same time last year, all 50 states and 96 of the top 100 metro areas were showing an improving three-month trend.

Freddie Mac Deputy Chief Economist Len Kiefer stated, “Housing markets are on track for their best year in a decade, and that’s reflected in MiMi. The National MiMi stands at 85.7, a 5.4 percent year-over-year increase. The MiMi purchase applications indicator is up over 18 percent from last year and is at its highest level since December 2007.”

“The housing market is showing strength across the country. The South continues to show some the biggest improvements, especially in Florida. MiMi’s purchase applications indicator is up more than 30 percent in Florida compared to last year. Meanwhile, in the West, the battle between low mortgage rates and rising house prices continues. So far, low mortgage rates have helped on the affordability front, but in hot markets like Denver, Fresno, Provo and Los Angeles it’s becoming increasingly difficult for the typical family to afford a median price home.”

NEW YORK, NY – Mortgage rates held steady this week with the benchmark 30-year fixed mortgage rate remaining at 3.64 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 rose to 3.67 percent, while the average 15-year fixed mortgage rate remained at 2.93 percent. Adjustable mortgage rates were mixed this week, with the 5-year ARM inching higher to 3.11 percent and the 7-year ARM slipping to 3.28 percent.   

Mortgage rates were at a relative standstill this week, as investors awaited the outcome of the Nov. 2 Federal Reserve policy meeting and the result of the Nov. 8 elections. There is little doubt about the outcome of the presidential election, but investors are uncertain about which party will control the Senate and maybe even the House.  Investors seem fairly sure that the central bank will keep its target for short-term interest rates unchanged at the Nov. 2 meeting, but they believe that a rate hike at the Dec. 14 meeting is fairly likely. In this case, mortgage rates might move in the same direction as the federal funds rate — upward toward the end of the year.

At the current average 30-year fixed mortgage rate of 3.64 percent, the monthly payment for a $200,000 loan is $913.79.

SURVEY RESULTS

30-year fixed: 3.64% — unchanged from 3.64% last week (avg. points: 0.23)

15-year fixed: 2.93% — unchanged from 2.93% last week (avg. points: 0.18)

5/1 ARM: 3.11% — up from 3.10% last week (avg. points: 0.26)

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 vast majority – 80 percent – expect mortgage rates to remain more or less unchanged over the next week.  The remaining respondents are mixed with 10 percent predicting a rise in mortgage rates and 10 percent forecasting a decline over the next seven days.

(RECAP: The Portsmouth Redevelopment and Housing Authority remains under fire and facing questions about conditions in the city’s public housing while at the same time its board of commissioners prepare for an upcoming federal review. “Just because they don’t see us doing stuff they think we’re not doing anything,” says PRHA’s interim executive director, Donnell Brown. Once PRHA’s special meeting on Wednesday opened back up to the public its interim executive director tells 13News Now that it’ll be ready for HUD’s upcoming on-site review and will have submitted or have ready all 28 requested items such as banking information, budgets, and credit card statements. “I don’t know what they’re going to find because honestly you’ve got to remember we are human we make mistakes but I don’t think there’s anything to the level of removing the board,” Brown says. That is exactly what several members of the Portsmouth City Council say they want.)

DALLAS, TX – Niche neighborhoods and economic diversity are driving forces behind the strong showing of this year’s top ten U.S. cities, according to Emerging Trends in Real Estate 2017, released by PwC US and the Urban Land Institute (ULI). Austin, Texas, wins “Top City,” thanks to its authentic, niche neighborhoods and depth of economic diversity, from manufacturing to education, health care and technology. Construction labor shortages and the rapid spread of digitization throughout the industry are also playing key roles in fueling 2017 real estate trends, along with “Optionality,” the multi-purposing of in-demand spaces.

Now in its 38th year, Emerging Trends in Real Estate is one of the most highly regarded annual industry outlooks for the real estate and land use industry. It includes interviews and survey responses from more than 1,800 leading real estate experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants.

“Viewed as a fluke when it hit the study’s top ten list 5 years ago, Austin’s rise to the top of the list signals the durability of the city’s long-term appeal to investors,” says Mitch Roschelle, PwC Partner and Real Estate Research Leader.  “Austin, along with many of this year’s top 10 cities, boasts attractive, niche neighborhoods and a vibrant, diverse economy.”

“This year’s report shows that there are opportunities stemming from a shift in how, where, and when people work,” says ULI Global Chief Executive Officer Patrick L. Phillips. “One of the trends leading to new opportunities is multi-purposing of commercial space. We’re seeing different types of tenants using the same space for different uses at different times of the day, particularly in tight markets. Buildings with open, flexible space have a competitive advantage.”  

Top Trends:

Niche Neighborhoods & Economic Diversity: Market characteristics such as authentic, niche neighborhoods with strong economic diversity are driving growth outside of gateway markets. The attractiveness to both workers and employers alike is supporting real estate growth.

Labor Shortages: Construction labor shortages are driving up construction costs and stretching out project timelines, directly impacting availability of affordable real estate across all residential sectors.

“Optionality” – A new driving force landlords can use to protect revenue potential by allowing multiple uses of the same space at different times, and permitting tenants to use only the space they need when they need it.  For example, an office by day and a party/event venue by night.

Digitization & Transparency: The digitization of real estate is revolutionizing the industry by improving accuracy, transaction speed and transparency, which in turn is fueling an “auto-correcting” real estate cycle.  Rising property prices slowing transaction volumes while new supply remains under control is holding off the traditional “boom/bust” of previous cycles.

Top 10 Cities in Emerging Trends in Real Estate 2017:

Austin, TX

Dallas/Fort Worth, TX

Portland, OR

Seattle, WA

Los Angeles, CA

Nashville, TN

Raleigh/Durham, NC

Orange County, CA

Charlotte, NC

San Francisco, CA

Dropping out of the top 10 market ranking this year are Atlanta, GA and Denver, CO due to concerns that new supply may be getting ahead of demand.  Despite the drop, both markets remain in the top 20.  

Top 5 Markets to Watch and Why:

Columbus – A major university town, Columbus is seeing a surge in entrepreneurial activity.  

Richmond – The “hip factor” of downtown Richmond is on the rise.  

Pittsburgh – Emerging tech and other startups are flocking to Pittsburgh because of the access to talent from nearby universities and a 4% lower-than-the-national-average cost of doing business. 

Charleston – The Charleston economy is hitting on all cylinders with strong demographic growth and expanding technology, manufacturing and transportation industries.  

Salt Lake City – Salt Lake City is benefitting from a unique synergy between financial services and technology firms. 

FALL RIVER, MA – The NHP Foundation, a national not-for-profit, announced its sponsorship of a 12-month renovation of the Ships’ Cove Apartments in Fall River, MA. Originally part of NHPF’s property portfolio, Ships’ Cove is now under the auspices of NHPF and the property’s new owner, Ships’ Cove Preservation Partners Limited.

NHPF will lead the revitalization effort and act as the developer of an $8 million renovation to the property. Additional financing partners for the rehabilitation include the U.S. Department of Housing and Urban Development, Massachusetts Development Finance Agency, Massachusetts Department of Housing and Community Development, RBC Tax Credit Equity LLC, Wells Fargo Bank, National Association, and Citizens Bank, NA.

Located at 130 Canal Street in Fall River, MA, Ships’ Cove is a high-rise building located centrally to public transportation as well as many other public and commercial amenities and features 201 one- and two-bedroom apartments with incredible views of historic Battleship Cove. The renovation process, which is set to begin in November and be completed by the end of 2017, will include improvements to units, common areas, building systems and the building exterior, as well as accessibility improvements and installation of utility conserving fixtures, to improve the quality of life for current and future residents of Ships’ Cove as an important affordable housing resource in Fall River.

“Ships’ Cove is a significant part of the affordable housing landscape in the city of Fall River,” said Richard Burns. “To be part of a partnership that is focused on preserving the availability of quality affordable housing for families in a location with access to public transportation, schools, medical facilities and job opportunities, is not only incredibly exciting, but is exactly what affordable housing preservation should be focused on every day.”

NEW YORK, NY – S&P Dow Jones Indices released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data for August 2016 shows that home prices continued their rise across the country over the last 12 months.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.3% annual gain in August, up from 5.0% last month. The 10-City Composite posted a 4.3% annual increase, up from 4.1% the previous month. The 20-City Composite reported a year-over-year gain of 5.1%, up from 5.0% in July.

Portland, Seattle, and Denver reported the highest year-over-year gains among the 20 cities over each of the last seven months. In August, Portland led the way with an 11.7% year-over-year price increase, followed by Seattle at 11.4%, and Denver with an 8.8% increase. Ten cities reported greater price increases in the year ending August 2016 versus the year ending July 2016.

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.5% in August. Both the 10-City Composite and the 20-City Composite posted a 0.4% increase in August. After seasonal adjustment, the National Index recorded a 0.6% month-over-month increase, and both the 10-City Composite and the 20-City Composite reported 0.2% month-over-month increases. After seasonal adjustment, 14 cities saw prices rise, two cities were unchanged, and four cities experienced negative monthly prices changes.

“Supported by continued moderate economic growth, home prices extended recent gains,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “All 20 cities saw prices higher than a year earlier with 10 enjoying larger annual gains than last month. The seasonally adjusted month-over-month data showed that home prices in 14 cities were higher in August than in July. Other housing data including sales of existing single family homes, measures of housing affordability, and permits for new construction also point to a reasonably healthy housing market.

“With the national home price index almost surpassing the peak set 10 years ago, one question is how the housing recovery compares with the stock market recovery. Since the last recession ended in June 2009, the stock market as measured by the S&P 500 rose 136% to the end of August while home prices are up 23%. However, home prices did not reach bottom until February 2012, almost three years later. Using the 2012 date as the starting point, home prices are up 38% compared to 59% for stocks. While the stock market recovery has been greater than the rebound in home prices, the value of Americans’ homes at about $22.3 trillion is slightly larger than the value of stocks and mutual funds at $21.2 trillion.”

More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.

(RECAP: When a family with children seeks emergency shelter, there are a number of interventions to address their homelessness. Today, the U.S. Department of Housing and Urban Development (HUD) released the results of an exhaustive study to identify the most efficient and cost-effective ways to house and serve these families. After tracking more than 2,200 families over a three-year period, HUD found that a long-term subsidy, typically a Housing Choice Voucher, led to far better outcomes for reducing family homelessness and improving family well-being.)