Author: ipgocorp

WASHINGTON, DC – Forty-three percent of leaders from the nation’s largest apartment firms indicated their residents listed homes on short-term rental sites, according to a new survey from the National Multifamily Housing Council (NMHC). The survey on home sharing follows Airbnb’s announcement on their multifamily partnership program, which represents the first market-driven attempt to turn what is currently a lease violation into a revenue opportunity for both apartment firms and their residents – so long as the home sharing company can address the concerns held by multifamily owners and operators.

The survey, fielded September 7-12, includes responses from 79 firm leaders, covering a third of the NMHC 50 largest apartment owners and managers and more than one million apartment homes. One-third (33 percent) are open to a partnership program similar to what Airbnb announced today, while another 42 percent said they weren’t interested; the remainder responding that they did not know. A senior Airbnb executive provided an exclusive briefing on the new program to the nation’s leading apartment executives at NMHC’s Fall Board of Directors meeting today.

“Short-term rentals have sparked lively debates among multifamily firms, and reactions cut across the spectrum. We appreciate efforts from Airbnb to work with our members in trying to address the myriad of legal, regulatory and operational issues that come from home sharing. Today’s announcement shows a maturation of this new industry,” said NMHC President and CEO Doug Bibby.

According to the survey, the top problems due to residents listing their apartment on home sharing platforms were safety issues (80 percent), liability and insurance (74 percent) and quality of life concerns/ neighborhood dynamic (74 percent). Airbnb’s multifamily partnership program, first presented at the 2015 NMHC OPTECH Conference, attempts to alleviate these concerns while also offering a revenue share, along with better information and management of the listings.

“On one hand, it adds transparency, provides a perk to residents and creates an additional revenue stream on activities often already taking place in their buildings. Conversely, the safety and liability concerns, along with wanting to preserve a carefully curated quality of life for their residents, may be too high a bar to clear for others,” said Rick Haughey, VP of Industry Technology Initiatives.

Another issue facing the use of home sharing is the patchwork of local laws that provide varying levels of restriction. Of those interested in participating in a home sharing program, a quarter of those (9 percent of all responses) would consider home sharing if their jurisdiction allowed it. Moreover, 35 percent identified violation of local laws as a top concern with their residents listing their apartment homes on home sharing platforms.

“The growing popularity of the sharing economy, and home sharing in particular, has brought new economic opportunities along with additional challenges for both the businesses involved and policymakers. We believe that apartment firms have the right to participate in all areas of the sharing economy, if they so choose, in full compliance with existing laws and regulations,” said Kevin Donnelly, VP of Government Affairs.

The survey also asked about how apartment firms respond to residents violating their leases by using home sharing platforms. Almost four in ten (39 percent) reported taking action for lease violations. Among those taking action, the most common enforcements were verbal/written warnings (86 percent) and lease termination (54 percent).

(RECAP: The U.S. House Financial Services Committee is expected on Tuesday to pass a revamp of the Dodd-Frank Wall Street reform law, but the bill is not anticipated to receive President Barack Obama’s signature if it ever reaches his desk. The bill, introduced this summer by the committee chairman, Republican Jeb Hensarling, would allow banks to choose between complying with Dodd-Frank or meeting much tougher capital requirements. Dodd-Frank, which was passed in the aftermath of the 2007-08 financial crisis and economic recession, has been the target of ire by Republicans and some banks. Critics say Congress went too far in its attempt to clamp down on Wall Street and prevent another financial meltdown and that the law imposes overly burdensome requirements and gives regulators too much power. Corresponding legislation to Hensarling’s bill has not been introduced in the Senate.)

SAN LUIS OBISPO, CA – The City of San Luis Obispo recently celebrated the grand opening of South Hills Crossing, a new affordable apartment community by ROEM Corporation in partnership with the Housing Authority of the San Luis Obispo (HASLO). The grand opening celebration was held at 309 South Street, San Luis Obispo, CA 93401.

“South Hills Crossing represents the coming together of the private sector, HASLO, the City and financial markets to really address one of our community’s top challenges – lack of affordable rental housing. I am excited to see this project come to fruition,” said Mayor Jan Howell Marx, City of San Luis Obispo.

South Hills Crossing stands out as a shining example of how the community benefits when partners come together in the housing industry. Due in large part to the successful collaboration of the Housing Authority of San Luis Obispo (HASLO), City of San Luis Obispo, County of San Luis Obispo, San Luis Obispo County Housing Trust Fund, and ROEM Corporation, 43 families have moved into their new South Hills Crossing affordable apartments. In close proximity to restaurants, services, and entertainment downtown, South Hills Crossing brings permanent affordable housing to this beautiful California Central Coast community.

“South Hills Crossing is an excellent example of what can be accomplished by the community working collaboratively. Together we have created a permanent affordable housing resource for San Luis Obispo close to jobs, services and transportation,” said Scott Smith, Executive Director of HASLO.

South Hills Crossing is affordable to families with annual incomes at or below 60 percent of the San Luis Obispo County area median income. Designed by international award-winning KTGY Architecture + Planning, the $14.1 million development consists of three buildings in a contemporary mix of urban-industrial and craftsman style architectures with 43 one-, two- and three-bedroom units. In step with the community’s love of outdoor recreation and care for the environment, the development boasts a bike storage structure for 44 bicycle spaces (one per unit) in addition to providing 66 surface parking spaces and four motorcycle spaces.

“South Hills Crossing shows what can be done when a public sector collaborative and a for-profit developer work in partnership to begin solving a local problem such as housing affordability,” said Alex Sanchez, Executive Vice President of ROEM Corporation. “While we’re still feeling the effects of the demise of our state’s redevelopment funding sources, and with so many other economic variables working against the goal of providing affordable housing, I applaud the City and County of San Luis Obispo for creating policies that encourage affordable housing developers to build here.”

Currently pursuing USGBC LEED Platinum certification, ROEM incorporated a number of “green” features designed to ensure long-term energy efficiency and sustainability, including both solar thermal and common area photovoltaic systems; energy efficient windows; and natural ventilation with low volatile organic compound (VOC) paints and sealants. Carpet and Rug Institute (CRI) Green Label Plus low VOC carpeting, pads and adhesives, and Energy Star appliances and water-efficient fixtures were also installed.

South Hills Crossing is financed with 9 percent Low Income Housing Tax Credits and Solar Tax Credits, with additional financial support from the City and County of San Luis Obispo, HASLO, San Luis Obispo County Housing Trust Fund, Citi Community Capital and AEGON Group. The architect is KTGY Architecture + Planning and the general contractor is ROEM Builders, Inc.

“AEGON is excited to play a part in providing 43 critically needed new housing units to the residents of San Luis Obispo,” said Gary Howe, Director, 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 Housing Authority of San Luis Obispo, as well as the County of San Luis Obispo, the City of San Luis Obispo, the San Luis Obispo Housing Trust Fund, and Citi Community Capital. This marks AEGON’s eighth investment with ROEM Development and we are confident South Street Family Apartments will be as tremendously successful as the previous seven. San Luis Obispo is already a desirable community for residents and visitors; South Hills Crossing Apartments will help to keep it accessible to those struggling to find housing in an extremely competitive market.”

NEW YORK, NY – The U.S. real estate market has become a favorite destination for Chinese outbound capital in recent years, reaching an estimated $10 billion, with approximately $4.37 billion being invested in commercial properties in 2015, according to KPMG’s China Inbound Investing in U.S. Real Estate – 2016 Semi-Annual Update report.  The report also highlights the dynamics of the six most active real estate markets in the U.S.: New York, Los Angeles, San Francisco, Washington, DC, Chicago, and Dallas.

“The U.S. market is very attractive to Chinese investors as they look to expand their global operations, diversify their portfolios by adding U.S. assets, and establish information exchanges with U.S. developers,” said Phil Marra, U.S. Real Estate Funds leader, KPMG LLP. “While much of the investment has been focused in U.S. coastal “gateway” cities, where assets are considered most liquid, Chinese investors are starting to expand into other markets as they seek higher yields and diversification.”

According to the KPMG report, the overall U.S. real estate market is expected to reach record-setting growth in the next two years, based on a solid domestic economy, low interest rates worldwide, and increasing demand from both U.S. and global investors seeking yield.

“Chinese investors continue to show a strong appetite for U.S. development assets in gateway and increasingly in other markets with strong real estate fundamentals such as Dallas and Seattle,” said Roger Power, leader for KPMG’s U.S.-China Real Estate Initiative. “Finding a strong local development partner or establishing a local presence with an experienced local real estate team are critical to achieving desired returns.”

The Chinese Insurance Regulatory Commission encouraged Chinese insurance companies to increase overseas investments by permitting investment of up to 15 percent of their assets overseas. In addition, the Qualified Domestic Individual Investor program (QDII2) further offers an unprecedented channel for China’s middle-class and high-net-worth individuals to invest overseas.

“As Chinese investors continue to make significant investments in U.S. real estate, their understanding of the U.S. tax law and the benefits of proper tax structuring becomes increasingly more important,” said Jennifer Anderson, Tax partner, KPMG LLP. “Pursuant to the income tax treaty between the U.S. and China, Chinese investors may protect the return in their investments by seeking the full benefits under the treaty.”

LAKEWOOD, CO – Inland Real Estate Acquisitions, announced that it facilitated the acquisition of WestLink at Oak Station, a 244-unit multifamily property located in Lakewood, Colorado, approximately nine miles west of downtown Denver.

Mark Cosenza, senior vice president of Inland Real Estate Acquisitions, facilitated the transaction on behalf of an Inland affiliate.

Located at 1665 Pierson Street in Lakewood, WestLink at Oak Station consists of seven three-story buildings containing 130 one-bedroom, 99 two-bedroom and 15 three-bedroom units. Each unit includes granite countertops, gourmet kitchens, nine-foot ceilings, oversized walk-in closets and a patio or balcony. Community amenities at the property include a resort-style swimming pool and spa, fitness center with a yoga studio, sundeck with cabanas and a business center.

“We’re pleased to have closed on this high quality multifamily property that is newly constructed and located just across the street from the Oak Station RTD Light Rail, providing residents with easy access to downtown Denver,” said Cosenza. “WestLink at Oak Station is surrounded by strong demographics and benefits from its close proximity to the Denver Federal Center, St. Anthony Hospital and nearby office markets.”

As of the acquisition date, the property was 97 percent leased.

To date, Inland Real Estate Acquisitions, Inc. has facilitated more than $43 billion of purchases including retail centers, apartments and single-tenant properties.

SEATTLE, WA – Attending an elite university certainly has its benefits, but it’s not without financial challenges, as 80 percent of the top 35 national universities named today on U.S News & World Report’s Best Colleges of 2017 are located in pricey rental markets, according to a new Zillow analysis.

Students who are submitting college applications now for acceptance into the 2017-18 school year will likely live off-campus for at least part of their four-year college career. Zillow identified off-campus housing costs students can expect to pay, above and beyond the school tuition, in the cities that are home to the highest ranked colleges.

“As students and their parents are filling out applications this fall and are crunching the numbers on financial aid and student loans, they should also factor in cost of housing,” said Jeremy Wacksman, Zillow chief marketing officer. “Looking at both on-and off-campus housing prices, and thinking through whether they’ll likely live with roommates or alone will help them gauge an accurate picture of the student loans and financial aid they will need in order to obtain their degree.”

Students attending top-ranked national universities Stanford, Princeton and University of California, Berkeley will pay the most in off-campus housing. University of Notre Dame, Carnegie Mellon University and Washington University in St. Louis, MO are among the highest ranked schools with the lowest off-campus housing costs.

In more than three-quarters of the top 35 national universities for 2017, including all schools located in Chicago, Boston, Los Angeles, San Francisco, New York and Washington D.C., the median rent is higher than the nation as a whole.

Stanford students can expect to pay nearly five times the median national rent for a rental in Palo Alto, without a university subsidy for their off-campus rent. At the other extreme, University of Notre Dame students can expect more affordable housing, as the median rent in South Bend is $748, close to half of the national median rent.

Most Expensive Off-Campus Housing for 2017 Highest Ranked National Universities:

1. Stanford University, Stanford/Palo Alto CA
2. Princeton University, Princeton NJ
3. University of California – Berkeley, Berkeley CA
4. California Institute of Technology, Pasadena CA
5. University of Southern California & University of California – Los Angeles, Los Angeles CA

Least Expensive Off-Campus Housing for 2017 Highest Ranked National Universities:

1. University of Notre Dame, Notre Dame/South Bend IN
2. Washington University – St Louis, St. Louis MO
3. University of Rochester, Rochester NY
4. Wake Forest University, Winston-Salem NC
5. Carnegie Mellon University, Pittsburgh PA

In addition to current costs, students should consider how rents may rise during the years they attend the university, or even beyond, should they enter the workforce near their alma mater. Rents are appreciating rapidly in many of the major markets across the U.S., especially on the West Coast. Student renters in the Bay Area or the greater Los Angeles region can expect to see the highest annual rental appreciation, which is anticipated to grow by more than 6 percent over the coming year.

“Whether you’re an in-state or out-of-state student, college is expensive,” said Anita Narayan, managing editor of Education at U.S. News. “Best Colleges provides a wealth of data and information for prospective students to identify schools that suit their specific needs. Factors like location and cost are especially important to consider.”

(RECAP: Is there still a gender gap when it comes to mortgages? While single women have come a long way from the days when a man had to guarantee their mortgage, the Urban Institute thinks that they, or perhaps more correctly the industry, still have a long way to go. Urban Institute researchers write that female only borrowers made up 20 percent of those taking a mortgage in 2014. This is a group that is disproportionately minority and lower income yet are better than men at paying their mortgages. Still they get no price break for this performance and are denied mortgages at higher rates than men. While the share of female-only borrowers has declined slightly since the boom, it averaged 21.5 percent across the decade ending in 2014. Male-only borrowers accounted for a 29 percent share and male-female borrowers accounted for 48 percent.)

MEMPHIS, TN – EdR, one of the nation’s largest developers, owners and managers of high quality collegiate housing communities, announced the closing of the previously announced acquisitions of two communities at Colorado State University and one at the University of Arizona.

These acquisitions add a total of 505 beds at strong, growing universities to the EdR portfolio.

Pura Vida and Carriage House, with a total of 194 beds, are new communities adjacent to campus, where EdR has the opportunity to develop additional beds. The amenities at each community include 24-hour computer lab, indoor bike storage, full-sized washer and dryer in the units and safety features that include cameras and electronic locks. With their more intimate size, Pura Vida and Carriage House cater to juniors and seniors who are seeking more privacy.

Nestled in the Colorado Front Range, Fort Collins, Colo., was named as one of the Top 10 college towns in America. CSU’s 2015 enrollment was 32,236 and has been rising steadily over the past four years. The 2015 freshman enrollment was a record for the school and was nine percent larger than 2014. It offers bachelor’s degrees in 65 majors and post-graduate programs in more than 90 fields. Colorado State was recognized by Forbes Magazine on its “America’s Most Entrepreneurial Universities” lists in 2014.

The Urbane, a 311-bed community, which opened last month, will be one of the most highly amenitized communities in the EdR portfolio. Amenities include large rooftop deck with pool, cabanas and an oversized hot tub; indoor and outdoor lounges, study areas and bed-bath parity with tiered amenity options in floor plans ranging from studios to five bedrooms.

The University of Arizona has an enrollment of more than 40,000 students, which has been growing steadily over the course of the last decade, on the Tucson, Ariz., campus. It is classified as a Carnegie Foundation very high research activity university. Arizona is a leader in space exploration research with its Lunar and Planetary Laboratory contributing to numerous NASA missions.

MADISON, AL – Cobalt Seniors and Shepherd Health announce Shepherd Living at The Range, an upscale 124-resident community offering spa-like living on roughly 14 lush acres in Madison, a growing suburb of Huntsville, Alabama.

The joint venture has purchased the property from NitNeil Partners and is developing the community with architectural firm Erdman, Redstone Federal Credit Union and contractor DeAngelis Diamond. 

The project will create approximately 200 jobs throughout the construction period and, once completed, approximately 65+ additional jobs for permanent operations.  Shepherd will be hiring health and wellness experts, caregivers, and administrative and business staff, as well as workers in the food service industries and grounds maintenance.  The community will be managed by Shepherd Senior Living.

Shepherd Living is a way of life and residents of Madison, AL will soon experience all that means.  As explained by Joseph Jasmon, CEO of Shepherd Senior Living, “We’ve never understood the industry’s insistence to build beautiful environments, and then fail to truly operationalize them – full of forced group activities that very few people actually enjoy.  We don’t deteriorate as we age, if anything, our intellect, sense of humor, and desire to engage with family and our communities are only enhanced.  Shepherd Living honors that – creating spaces that are, quite simply, joyful, care-free versions of life as it has always been.”

Residents will enjoy a host of amenities, including gourmet farm-to-table food, fine wine storage, a full-service salon, a greenhouse and numerous gardening opportunities, private kitchens, animal therapy, extensive walking trails and landscaping throughout the large grounds, and a tavern to enjoy Alabama football.  The wellness lifestyle at Shepherd Living at The Range also includes daily classes ranging from meditation and gentle yoga to aerobics and circuit training. 

Luckily, for seniors in Madison, these amenities aren’t just for community residents.  Shepherd Living at The Range welcomes the broader 65+ community to its world-class spa and wellness center, featuring both traditional and Ayurvedic massage and a thermal experience replete with Laconium room, thermal pool and heated loungers, and a traditional Finnish sauna.  The fully-outfitted gym includes an exterior plunge pool.  Group classes and private instruction are available 7-days a week.

Similarly, Shepherd Living at The Range will extend to both its residents and the broader Madison senior community exceptional medical services in the form of on-site physical therapy and other rehabilitation services.

“Our communities are state of the art, harmonizing technology and wellness in a way never seen before,” says Christine Menedis, co-Founder and CEO of Shepherd Health.  “The best tech is seamless – it should anticipate your desires and enhance your experiences.  For our residents and their families, that translates into entertainment, HIPAA-compliant health record access, and, most importantly, visibility and peace of mind for families, who can see exactly how Mom or Dad is doing any given day.”

Founders of both Cobalt and Shepherd have been instrumental in pushing and transforming the broader healthcare and development industries.  As stated by Erik de Vries, Principal and President of Cobalt, “Cobalt has become synonymous with cutting edge, quality healthcare.  We are excited to bring that same level of care to senior living in Madison.  Shepherd Living at The Range is going to be a dynamic, thriving addition to the community.”

TEMECULA, CA – MIG Real Estate, a Newport Beach, California-based real estate investment company, has acquired the luxury apartment community of Cape May at Harveston, a 300-unit garden-style apartment community in Temecula, California, ideally situated near upscale shopping and dining, central to area high-tech and biotech industries, and within walking distance of some of the region’s highest-performing schools.

Cape May, which was brokered by Tom Moran Jr. with Moran & Company, is located within the premier master-planned community of Harveston, which is situated around a beautiful 17-acre lake and park, and includes walking paths, an Olympic pool and ongoing community activities, offering the most in carefree, low-maintenance living.

Located in Temecula, Cape May is part of a community known for its skilled and educated population, award-winning schools, biotech industry, safe neighborhoods and more than 40 prestigious wineries and vineyards, which provide a robust tourism market that attracts and supports specialty markets, restaurants and entertainment venues. This unique blend of both lifestyle and convenience draws an affluent demographic to the city.

Built in 2006, Cape May’s superior location and product affords the opportunity for value-add enhancements that will put the property at the peak of the city’s luxury rental market.

“Cape May is a beautiful community with the potential to outshine all other Class A assets in the market,” said Greg Merage, CEO of MIG Real Estate. “Riverside County continues to be one of the fastest growing regions in California, and Temecula is one of its most desirable cities, drawing a younger, high-income demographic that is in search of the ideal community in which to settle down.”

Residents of Cape May at Harveston have the unique advantage of using the Temecula Trolley, which provides easy access to great shopping and dining destinations, neighborhoods, employment centers, schools and entertainment venues throughout the city. Some regular stops include Old Town Temecula, a vibrant pedestrian-friendly, walkable downtown destination; and Promenade Temecula, an upscale open-air retail center that includes Lululemon, Apple Store and Williams-Sonoma.

The Temecula Valley Unified School District boasts 16 California Distinguished/Gold Ribbon schools, two of which are within the attendance boundary of Cape May. One of those schools is Chaparral High School, which received the silver medal in U.S. News Best High School rankings awarded by U.S. News and world Reports. The other, Barnett (Ysabel) Elementary School, has the second highest API score in the district.

“As our second West Coast purchase in the past year, the acquisition of Cape May allows MIG to continue to strategically expand upon its presence in the region,” said Chris McCormick, Senior Manager of Financing and Investments.