Author: ipgocorp

(RECAP: More Americans bought homes in September despite a persistent shortage of properties for sale. The National Association of Realtors says sales of existing homes rose 3.2 percent to a seasonally adjusted annual rate of 5.47 million, highest since June. Sales rose across the country. The supply of available was 2.04 million, down 6.8 percent from a year ago. Tight inventories drove the median price of existing homes up 5.6 percent from a year ago to $234,200.)

MOUNTAIN VIEW, CA – ROEM Development Corporation celebrated the groundbreaking of Evelyn Family Apartments. Located at the southwest intersection of East Evelyn Avenue and South Bernardo Avenue in the City of Mountain View, Evelyn Family Apartments will be an affordable multifamily apartment community on a 1.93 acre site. The development will offer studio, one, two and three-bedroom apartments to families making up to 60 percent of the Santa Clara County Area Median Income.

“Evelyn Family Apartments is one of the largest affordable housing projects in the City of Mountain View,” explained Mountain View Mayor, Pat Showalter. “Aimed to benefit people who live and work in Mountain View with low incomes, it is a testament to the City’s commitment to seek affordable housing developments, to increase the overall housing diversity and supply, and to investing City funds to help make it happen. Thanks to the effectiveness of public and private partnerships like we have with ROEM, we will be able to keep families in Mountain View and help those who grew up here, stay here.”

This $64 million three- and four-story community will provide 116 residential units and 116 bicycle parking spaces for residents and guests. The contemporary architecture will complement the surrounding neighborhood by integrating an interpretation of traditional styling, consistent with the diverse context existing in the city. The development will include a wide range of indoor and outdoor amenities, such as a large community room with a kitchenette, homework center with computers, fitness room, laundry rooms, a private shuttle to and from the local transit and schools, and VTA Eco-passes for each unit.

“As a rule, the City of Mountain View’s affordable housing developments are well-designed and indistinguishable from market-rate housing,” says ROEM’s Executive Vice President Alex Sanchez. “So are ROEM’s: We are committed to designing and building housing that is affordable, sustainable and transit-oriented. Evelyn Family Apartments is our third housing project in Mountain View, and we are delighted to be partnering with the City to bring 116 new, permanently affordable apartments to low-income families living and working here.”

The building will be built of high-quality Type VA residential construction over a Type IA one-level at grade and one-level subterranean parking garage. Construction of the project will include energy conservation features such as water and energy-efficient appliances and fixtures. Evelyn Family Apartments will be an environmentally- sustainable development and will pursue USGBC LEED-H Gold certification. This will include a high-efficiency irrigation system, no turf use, drought-resistant plant palette, roof drainage collection system via downspouts, upgraded insulation in exterior walls and roofs, Energy Star appliances, and high-efficiency heating and cooling equipment.

“AEGON is excited to play a part in providing 116 critically-needed, new housing units to the residents of Mountain View,” said Gary Howe, Director of AEGON USA Realty Advisors, LLC. “We would like to congratulate all of the partners involved in this development for their efforts in making this project a reality, including ROEM Development Corporation and the City of Mountain View, as well as Citi Community Capital. This marks AEGON’s eleventh investment with ROEM Development and we are confident Evelyn Family Apartments will be as tremendously successful as the previous ten. Mountain View is already a leading community for technology and innovation; Evelyn Family Apartments will help to keep it accessible to those struggling to find housing in an extremely competitive market.”

Ensuring a pleasing design that works with the surrounding community, the building will transition from four to three stories along the south property line which, combined with generous setbacks along the main entry drive, which will provide relief to the adjacent one- and two-story buildings. The focus of Evelyn will not only be its design but also its reduced carbon footprint. The development will emphasize water and energy efficiencies, air quality, construction, and waste management. In order to promote the use of bikes as a secondary transportation option and decrease its impact on the community, Evelyn Family Apartments will have a bike center for its residents with a parts depot, washing station, and short-term bicycle storage.

Evelyn Family Apartments is receiving 4 percent Low-Income Housing Tax Credits and Citi Community Capital provided tax-exempt construction financing in the amount of $32 million. Investment support was provided by AEGON. The City of Mountain View has provided financial backing for this project in the amount of $22.3 million. The architect is Withee Malcolm Architects, LLP; the nonprofit partner is Pacific Housing; and the general contractor is ROEM Builders, Inc. Completion is expected in August 2018.

“Evelyn Family Apartments is a wonderful example of high-quality affordable housing,” said Jay Abeywardena, Director of Citi Community Capital. “This development will translate into the creation of critical workforce housing for the entire Bay Area community.”

WINTER PARK, FL – Marcus & Millichap announced its Institutional Property Advisors (IPA) division has closed the sale of Calibre Bend Apartments, a 212-unit luxury multifamily asset in Winter Park, Florida. The $29 million sales price equates to $137,000 per unit.

“The property is an extensively renovated, impeccably maintained asset with a 25-year history of institutional ownership,” said Steve Witten, an executive director of IPA’s Northeast and Florida team.

“The acquisition provides new ownership with an immediate opportunity to add value to a ‘best-in-class’ asset in the submarket by implementing light interior upgrades,” added Frank Carriera, first vice president investments.

Witten and IPA executive director Victor Nolletti, along with Carriera and Michael Regan, first vice president investments, represented the seller and procured the buyer.

“The price per unit for this vintage asset can be attributed to the Orlando market’s strong fundamentals and the broad reach of IPA Northeast & Florida,” said Regan.

The property is located at 3924 Calibre Bend Lane in Winter Park and situated on the south side of University Boulevard in one of Orange County’s highest demand rental locations. Full Sail University, Winter Park’s largest employer, is within walking distance. Other nearby employment and educational centers include downtown Winter Park, downtown Orlando, the University of Central Florida, Valencia College, and Central Florida Research Park. Orlando’s most desirable retail and shopping destination, the Park Avenue district in Winter Park, is nearby.

Built in 1987, Calibre Bend Apartments’ community amenities include a designer-decorated clubhouse and leasing center, a business center, a resort-style swimming pool, a lighted tennis court and a car wash station. Apartments feature individual ground-floor entrances, built-in bookcases, full-size washers and dryers, and private, screened patios or balconies.

NEW YORK, NY – The value of new construction starts in September decreased a slight 2% to a seasonally adjusted annual rate of $703.7 billion, according to Dodge Data & Analytics.  This follows the 22% jump for total construction starts in August, which witnessed the highest monthly pace for construction starts so far in 2016.  

Nonresidential building showed further strength in September, exceeding its elevated August amount.  The lift for nonresidential building in September came from the start of two very large office towers in New York NY with a combined construction start cost of $3.5 billion, as well as eight large hospital projects that together summed to $2.2 billion.  However, the housing sector lost momentum in September, pulling back from August which included groundbreaking for a number of very large multifamily projects.  Nonbuilding construction also slipped in September, following its improved August volume that included the start of a $3.0 billion pipeline upgrade in the southeastern part of the nation.  Through the first nine months of 2016, total construction starts on an unadjusted basis were $506.7 billion, trailing the same period a year ago by 3%.

The September data produced a reading of 149 for the Dodge Index (2000=100), down from an upwardly revised 152 for August.  September was still fairly high by recent standards, coming in 6% above the average of the previous eight months.  

“Whether looking at construction starts month-to-month or quarter-to-quarter, the past two years have shown considerable volatility, reflecting in part when very large projects were entered as construction starts,” stated Robert A. Murray, chief economist for Dodge Data & Analytics.  “The first two quarters of 2015 included 13 very large projects valued each at $1 billion or more, followed by only one such project in last year’s third quarter. The current year has assumed a ‘mirror image’ quality with respect to the timing of very large projects – only four were entered as construction starts during this year’s first two quarters, but in the just completed third quarter six such projects were entered as construction starts. When combined with the more broad-based strengthening for construction that’s taken place in this year’s August and September, and with the comparison to the subdued activity for the same two months a year ago, the year-to-date shortfall for total construction starts has become considerably smaller than what was reported earlier in the year.”

“While the year-to-date percent change for total construction starts at the 7-month mark was initially reported as down 11%, at the 8-month mark it was down 7% and at the 9-month mark it was down just 3%,” Murray continued.  “Furthermore, if the volatile electric utility/gas plant category is removed from the year-to-date comparison, total construction starts would be flat with last year. Increasingly, it appears that 2016 is shaping up as a year when the overall level of construction starts is essentially holding steady.  This is being supported by such economic factors as moderate job growth, generally healthy market fundamentals for commercial real estate, and the funding coming from state and local bond measures that have been passed in recent years.”

Nonresidential building in September increased 5% to $282.3 billion (annual rate), following the 43% surge in August which benefitted from the start of a $3.0 billion petrochemical plant in Louisiana and the $1.7 billion Wynn Casino in Everett MA. The nonresidential increase in September was led by a 148% jump for office construction, which reflected the start of two massive office towers in New York City – the $2.0 billion, 66-story 3 Hudson Yards Boulevard office building on Manhattan’s west side and the $1.5 billion, 67-story One Vanderbilt Tower near Grand Central Station. September also featured the start of seven additional office buildings each with a construction start cost of $100 million or more, including the $280 million design center at the Ford Motor Company’s Dearborn MI office campus, the $209 million Four Constitution Square office complex in Washington DC, and the $178 million Oracle Corporation office campus in Austin TX.  Store construction also strengthened in September, rising 31% and helped by the start of a $150 million mall expansion in Staten Island NY.  On the negative side, hotel construction in September retreated 30% after its substantial August gain, although September did see groundbreaking for the $123 million Ritz Carlton Hotel in Paradise Valley AZ.  Commercial garages and warehouses experienced respective declines of 20% and 17% in September.  As a group, the commercial categories in September registered a 37% increase, after the 31% gain reported in August.  The improved levels for commercial building in August and September followed a lackluster amount of construction starts during the previous four months. The manufacturing plant category in September dropped 84%, after being boosted in August by the $3.0 billion petrochemical plant in Louisiana.

The institutional side of the nonresidential building market advanced 8% in September.  Much of the lift came from a strong volume for healthcare facilities which climbed 57%. There were eight healthcare facilities valued each at $100 million or more that reached groundbreaking in September, with the two largest being a $756 million healthcare facility complex in Loma Linda CA and the $500 million Vassar Brothers Medical Center patient pavilion in Poughkeepsie NY.  New education facility projects grew 4% in September, helped by three large college/university science buildings – a $175 million science center at Amherst College in Amherst MA, a $120 million engineering and sciences facility at Texas State University in San Marcos TX, and a $115 million biomedical sciences and engineering facility at the University of Maryland in Rockville MD.  For the smaller institutional categories, gains were reported in September for public buildings, up 10%; and religious buildings, up 40% from weak activity in August. Amusement construction starts were down 32% from August which included $975 million for the casino portion of the Wynn Casino, although September did see groundbreaking for the $486 million Milwaukee Bucks basketball arena in Milwaukee WI. Transportation terminal work in September was down 8%, although the latest month did include the $442 million Terminal 1 Center renovation at San Francisco International Airport.

Residential building, at $271.1 billion (annual rate), fell 8% in September.  Multifamily housing retreated after a strong performance in August, falling 17%. While August included 13 multifamily projects valued each at $100 million or more, there were only five such projects that reached groundbreaking in September, including a $225 million multifamily building in Seattle WA and a $145 million multifamily building in Milwaukee WI.  Through the first nine months of 2016, the top five metropolitan areas ranked by the dollar amount of multifamily starts were New York NY, Los Angeles CA, Chicago IL, Miami FL, and Boston MA.  Metropolitan areas ranked 6 through 10 were Washington DC, San Francisco CA, Dallas-Ft. Worth TX, Atlanta GA, and Denver CO.  While the New York NY metropolitan area continues to be the leading market for multifamily construction by dollar volume, its year-to-date amount for 2016 is down 27%, and its share of the national total has fallen from 26% for all of 2015 to 19% so far in 2016.  Single family housing in September dropped 4%, slipping back slightly from the plateau that’s been present for much of 2016.  By geography, single family housing in September showed weaker activity in the South Atlantic, down 9%; the South Central and West, each down 2%; the Midwest, down 1%; while the Northeast was unchanged from August.

Nonbuilding construction in September dropped 2% to $150.3 billion (annual rate).  Pulling the nonbuilding total down was a 72% plunge for the “miscellaneous public works” category, which includes such diverse project types as pipelines, mass transit, and site work.  The August amount for this category had been boosted by the start of the $3.0 billion Sabal Trail and Florida Southeast Connection natural gas pipeline upgrade project, which will transport natural gas from Alabama through Georgia and into central Florida.  By contrast, the largest miscellaneous public works project reported as a September start was a $244 million landfill project in Staten Island NY.  The environmental public works categories in September were mixed, with weaker activity for sewers, down 23%; but growth for river/harbor development, up 16%; and water supply systems, up 20%.  Highway and bridge construction in September climbed 17%, aided by the start of a $916 million segment of the Loop 202 (South Mountain Freeway) project in the Phoenix AZ area. Also starting in September was the $221 million Port Access Road in the Charleston SC area. New electric utility starts jumped 219% in September from a subdued August.  Large electric utility projects that contributed to September’s increase were a $1.3 billion natural gas-fired power plant in Virginia, a $600 million power plant coal burner replacement in Minnesota, and a $417 million wind farm in Illinois.

The 3% decline for total construction starts on an unadjusted basis during the first nine months of 2016 was due to a mixed pattern by major sector.  Nonresidential building year-to-date was down a slight 2%, with commercial building up 10%, institutional building even with last year, and manufacturing plants down 45%.  Residential building year-to-date advanced 5%, with single family housing up 7% while multifamily housing was unchanged.  Nonbuilding construction year-to-date fell 14%, with public works down 6% and electric utilities/gas plants down 29%. By geography, total construction starts during the January-September period of 2016 revealed these changes compared to the same period a year ago – the Midwest, up 9%; the South Atlantic, up 7%; the West, up 5%; the Northeast, down 5%; and the South Central, down 22% (reflecting this region’s comparison to last year which included several massive liquefied natural gas export terminals).

CHATTANOOGA, TN – PointOne Holdings, a real estate investment group with offices in Hollywood, Florida, and Atlanta, Georgia, acquired The Springs at Chattanooga for $31 million. The property, located in the city of Chattanooga is a 260-unit, “Class A” garden-style, multifamily rental community, encompassing more than 15 acres and newly built in 2015.

The Springs at Chattanooga is located on Gunbarrel Road, which averages a daily traffic count of 27,000 vehicles. The property is within one mile of the city’s principal retail core, and one exit from the 1.9 million square foot Volkswagen assembly plant and the 1 million square foot Amazon Fulfillment Center, two of the region’s predominate economic drivers. PointOne Holdings will rebrand the community as Hunters Point.

The community’s best-of-class amenities include a resort-style swimming pool, well-appointed clubhouse featuring free Wi-Fi, coffee bar and business center, 24-hour state-of-the-art fitness center, outdoor kitchens, dog park, pet spa, car care center and garages. The property’s well-designed apartment units average a spacious 963 square feet and feature fully equipped kitchens, ceiling fans, garden tubs, laundry/utility room with washer/dryer connections, patio/balcony, bay windows and walk-in closets.

The company plans to invest $650,000 in capital improvements to the property to implement minimal interior and amenity upgrade programs.

“We are excited to enter the Chattanooga market, a dynamic city with a growing tech/innovation, arts, and dining scene,” said David Lewin, managing member of PointOne Holdings. “The property’s strategic location in East Chattanooga is particularly important given the influx of jobs at the Volkswagen Manufacturing plant and the regional Amazon distribution hub.”

“The Springs at Chattanooga, PointOne Holdings’ fourth major acquisition in 2016, meets all of our acquisition criteria including a submarket with strong employment and limited new starts as well as solid apartment fundamentals,” said Leo Peicher, PointOne Holdings’ managing member. “We see the property as another important step in building our diversified portfolio of multifamily and commercial properties.”

NEW YORK, NY – Mortgage rates continued to rise this week with the benchmark 30-year fixed mortgage rate rising to 3.64 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.

The larger jumbo 30-year fixed inched slightly lower to 3.63 percent, while the average 15-year fixed mortgage rate increased to 2.93 percent. Adjustable mortgage rates were lower this week, with the 5-year ARM dipping to 3.10 percent and the 7-year ARM slipping to 3.29 percent.    

Mortgage rates barely moved this week, with the 30-year, fixed-rate mortgage rising just 2 basis points.  The benchmark mortgage rate has risen three weeks in a row, but modestly each time – just a tenth of a percentage point, in total. The direction in mortgage rates is in line with the Federal Reserve’s outlook. In its Beige Book economic roundup issued Wednesday, the Fed said economic activity has been largely “modest” or “moderate,” and that overall price growth has been mild.

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% — up from 3.62% last week (avg. points: 0.24)   
15-year fixed: 2.93% — up from 2.91% last week (avg. points: 0.18)   
5/1 ARM: 3.10% — down from 3.12% last week (avg. points: 0.27)   

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. Just under a quarter of respondents – 22 percent – expect mortgage rates to rise over the next week, while only 11 percent predict rates will decline.  The majority of respondents – 67 percent – believe mortgage rates to remain more or less unchanged over the next seven days.

(RECAP: As it looks to fill the commercial space left vacant by the departure of anchor tenant Southern Season earlier this year, Libbie Mill Midtown is moving forward with construction of the mixed-use development’s first residential pieces. Construction is underway on the Neighborhood of Libbie Mill Midtown, a mix of townhomes and condos totaling 994 units for purchase. Work has also started on the development’s first apartment building, a five-story structure in the heart of Libbie Mill that will total 327 rental units and 494,000 square feet. Construction started in June and is slated to wrap up on the apartment building in 2018. Models for the townhomes and condos are slated to open in the first quarter of next year.)

WEST PALM BEACH, FL – Cortland Partners has purchased Arium Palm Cove and Arium at Laguna Lakes, two neighboring communities aptly located in West Palm Beach, Fla. The Atlanta-based multifamily investment and management firm plans to consolidate the communities into a single, larger community to be called Portofino Place.

In so integrating the two communities, Cortland Partners will create synergies in operating efficiency under a cohesive leasing staff and management team, bringing quality service and delivering a superior resident experience. Financial terms for the transaction were not disclosed.

“We’ve had our eye on West Palm Beach for some time and feel it’s an attractive submarket to enter,” said Steven DeFrancis, Cortland Partners Founder and CEO. “Occupancy rates are at an all-time high nationwide and demand for our specific housing offering is stronger than it’s ever been. We look forward to a fruitful, long-term investment future in an exciting location.”

The purchase closed on October 14th and is the latest portfolio addition and new market entry for Cortland Partners. As is typical with the company’s portfolio additions, these end-cycle properties will undergo significant renovations meant to provide a superior living experience that promotes interconnectivity, convenience, and a sense of community, dovetailed by luxurious finishes and thoughtful design.

“Our top priority remains ensuring that our residents get the best living experience possible, and by combining these two communities, coupled with significant, transformative renovations and upgrades to existing amenities, we’re setting ourselves apart from competitive offerings,” said DeFrancis. “We are excited to bring the unique Cortland lifestyle offering to this market, providing more people with the quality living experience and state-of-the-art amenities that residents have come to expect from a Cortland community.”

BINGHAM FARMS, MI – FOURMIDABLE, a national real estate management and brokerage company, has been designated as the managing agent at four multi-family apartments in Southeastern Michigan.  

Loop Investments, LLC, which purchased three market rate communities in Southeastern Michigan, has awarded FOURMIDABLE the management contract for:

Country Meadows, a 267-unit apartment community in Ypsilanti
Providence Tower, a 241-unit mid-rise building in the city of Southfield; and
Water’s Edge Apartments, a 192-unit community in South Lyon, for which FOURMIDABLE Real Estate Services participated in the brokerage.

There are plans in place to improve the quality of product and services offered at these communities and their current and future residents. Planned enhancements include upgrades to the apartment units and building common areas. Additional improvements will be directed toward community landscaping, parking areas and carports, as well as the efficiency of mechanical systems.

“We are now managing seven communities in Southeast Michigan for Loop Investments LLC and we could not be more pleased to continue our ongoing partnership with them,” said FOURMIDABLE President Michael Schocker. “Loop Investments, LLC is committed to the improvement of these properties and the residents it serves.”

FOURMIDABLE is pleased to announce that they have also been appointed as the management agent for Woodland Heights; their second contract with the Pontiac Housing Commission. Woodland Heights is a public housing community consisting of 187 high-rise units and 21 scattered homes in Pontiac, Michigan.

“We are honored to once again partner with the Pontiac Housing Commission,” said FOURMIDABLE Chief Executive Officer, Jeri Hays. “Our company brings over 41 years of property management experience and quality services to the table, which we believe will add value to the lives of the Woodland Heights residents. FOURMIDABLE is the largest private manager of Public Housing in Michigan. We currently manage 2,582 total units representing Detroit, Lincoln Park, New Haven, Niles, Pontiac, Romulus, Royal Oak Township and Sterling Heights Housing Commissions.”   

(RECAP: Municipal officials and community advocates turned out in a big way for Thursday’s groundbreaking of the Housing Resource Center. The new structure signaled a serious commitment to finding shelter in Virginia Beach for the homeless people – often around 400 – counted annually in parks, along streets and in cars throughout the city. Tim McCarthy, chair of Bringing an End to All City Homelessness, relayed how folks journeyed to communities around the country to devise the best model for the $30 million, three-story building. It will rise at 104 N. Witchduck Road, near Southern Boulevard, and is scheduled to open in spring 2018. The resource center will house more than 100 people, from single adults to families. Some 30 efficiency apartments are part of the mix.)