Author: ipgocorp

NEW YORK, NY – Mortgage rates were down very slightly this week, with the benchmark 30-year fixed mortgage rate inching lower to 3.81 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.18 discount and origination points.

The larger jumbo 30-year fixed fell more sharply, to 3.76 percent, and is now lower than the smaller conforming loan which reasserts a trend that has prevailed for most of the past year. The average 15-year fixed mortgage rate eked out a decline to 3.05 percent this week. Adjustable mortgage rates were mostly lower, with the 5-year ARM nosing downward to 3.22 percent and the 10-year ARM sinking to 3.59 percent.      

Mortgage rates showed little change this week following a recalibration of interest rate expectations that had pushed rates modestly higher each of the two previous weeks. While comments from the Federal Reserve have markets prepared for a likely interest rate hike in coming months, the outlook for the upcoming June meeting is uncertain. The usual bevy of economic data that is a staple of the end of one month and beginning of another will be highlighted by the monthly employment report on Friday. A solid jobs report will further cement the idea of a summer interest rate hike, likely pushing mortgage rates up a bit.  

At the current average 30-year fixed mortgage rate of 3.81 percent, the monthly payment for a $200,000 loan is $933.05.

SURVEY RESULTS

30-year fixed: 3.81% — down from 3.82% last week (avg. points: 0.18)

15-year fixed: 3.05% — down from 3.06% last week (avg. points: 0.15)

5/1 ARM: 3.22% — down from 3.23% last week (avg. points: 0.18)

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. Once again the panelists are evenly split, with 42 percent expecting further increases and 42 percent predicting that mortgage rates will remain more or less unchanged in the coming week. Just 16 percent forecast a decline in mortgage rates in the next seven days.

(RECAP: Several civil rights and community development groups wrote Tuesday to urge the Federal Housing Finance Agency to recapitalize Fannie Mae and Freddie Mac. The joint letter included the Center for Responsible Lending, the National Community Reinvestment Coalition and Amalgamated Bank. “Our organizations are deeply concerned that under the Preferred Stock Purchase Agreements with the Treasury Department, the capital buffers of Fannie Mae and Freddie Mac will be completely eliminated by the end of 2017,” said the letter to FHFA Director Mel Watt. “This course of action is likely to destabilize the housing economy, undermine efforts to make housing finance more accessible and affordable, and drive up the costs of homeownership.”)

(RECAP: All eyes are on economic data as the country waits to see if the Federal Reserve will raise the federal funds target rate later in June. A rate hike is widely anticipated by economists and analysts; the latest economic data reported by the Fed, however, may put the rate hike on hold at least until late July. According to the Federal Reserve’s latest Beige Book released on Wednesday, most of the Fed’s 12 Districts reported only modest economic growth from April through mid-May, the period covered by the Beige Book.)

CHICAGO, IL – CIM Group has completed construction of the 690-unit Marquee at Block 37 apartment tower, setting the stage for moving in the first residents on June 1. Rising 34 stories atop the northern end of the four-level Block Thirty Seven retail center, the sleek, glass-clad apartment tower offers sweeping views of Chicago and is one of the largest newly-constructed apartment buildings in the city. Marquee brings new transit-oriented residences to The Loop, offering direct access to the city’s extensive pedway system, which connects tenants to many local businesses and attractions as well as the red and blue CTA lines.

Located at 25 West Randolph Street in the heart of Chicago’s State Street retail corridor and Theatre District, Marquee at Block 37 offers modern studio, one- two- and three-bedroom floor plans with a host of on-site amenities including a spacious outdoor pool and sundeck, fire pits, rooftop hot tub and terraces, dog run and wash, fitness center, event room, business center and an expansive outdoor terrace overlooking State Street. The leasing office for Marquee has now relocated on site.

The 275,000-square-foot Block Thirty Seven retail center is itself a top-tier amenity, just a private elevator ride away for Marquee residents. Block Thirty Seven offers an array of shopping, dining and entertainment options, including such recent additions as an 11-screen AMC Dine-In Theatre and the popular 22,000-square-foot Latinicity, a sophisticated casual dining hall featuring multiple authentic Latin cuisine options created by Richard Sandoval Restaurants. Coming soon, adding to the center’s premier dining options, is The Dearborn – an Urban American Tavern from the Lawless family set to open at the corner of Randolph and Dearborn Streets.

Completion of Marquee is the final phase of the mixed-use Block Thirty-Seven development at this prominent State Street location. CIM Group, which acquired the retail center at 108 N. State Street in February 2012, has applied its experience and proven track record of creating successful urban mixed-use properties located in major U.S. markets to the repositioning of the center as an attractive destination for the community, including the addition of the anticipated residential tower, which began construction in October 2014. The tower and retail center are among CIM’s growing portfolio of investments in Chicago’s Loop, which the company identified as possessing the attributes that fit CIM’s investment model that focuses on established and emerging urban areas with solid infrastructure and transportation networks.

HOUSTON, TX – MORGAN, a leader in upscale multifamily development, construction and property management, has opened Pearl CityCentre and Pearl Residences at CityCentre, two of its newest luxury apartment developments in Houston.

Located across the street from one another at 10401 and 10402 Town & Country Way, the two communities have been designed to appeal to a variety of renters drawn to the area for its proximity to shopping at CityCentre and Memorial City, employment in the Energy Corridor and Westchase District, and exemplary schools in the area.

Pearl CityCentre contains 311 one- and two-bedroom units in a seven-story concrete and steel building. Units range from 650-1,500 square feet, with an average unit size of 950 square feet.

Pearl Residences at CityCentre has 148 one-, two- and three-bedroom units in an eight-story concrete and steel building. Designed for residents seeking more square footage, the units in this community range from 750-2,500 square feet, with an average unit size of over 1,500 square feet.

With some distinct differences, both apartment communities showcase MORGAN’s premium Pearl amenities, including open floor plans and high-end interior finishes. Some of the differences between the two communities are KitchenAid appliances and hardwood floors in the Pearl Residences project. Each property features a cyber café, business center, state-of-the-art athletic club, and resort-style swimming pool with private cabanas. All residents have access to a sky lounge and shuttle service to nearby CityCentre.

“We designed Pearl CityCentre and Pearl Residences to appeal to a wide range of renters, from young professionals to empty nesters, who want an upscale all-inclusive environment,” said MORGAN Executive Vice President Carter Bechtol. “Since MORGAN launched the premium Pearl brand in 2013 with the opening of Pearl Greenway in Houston’s Greenway Plaza, we’ve seen demand grow for the type of luxury amenities we provide. I’m proud to say that this new Pearl development really delivers on the brand’s premium promise.”

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

YEAR-OVER-YEAR 
The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, reported a 5.2% annual gain in March, down from 5.3% the previous month. The 10-City Composite and the 20-City Composites’ year-over-year gains remained unchanged at 4.7% and 5.4%, respectively, from the prior month.

Portland, Seattle, and Denver reported the highest year-over-year gains among the 20 cities with another month of annual price increases. Portland led the way with a 12.3% year-over-year price increase, followed by Seattle with 10.8%, and Denver with a 10.0% increase. Ten cities reported greater price increases in the year ending March 2016 versus the year ending February 2016. 

MONTH-OVER-MONTH
Before seasonal adjustment, the National Index posted a month-over-month gain of 0.7% in March. The 10-City Composite recorded a 0.8% month-over-month increase while the 20-City Composite posted a 0.9% increase in March. After seasonal adjustment, the National Index recorded a 0.1% month-over-month increase, the 10-City Composite posted a 0.8% increase, and the 20-City Composite reported a 0.9% month-over-month increase. After seasonal adjustment, six cities saw prices rise, one city was unchanged, and 13 cities experienced negative monthly price changes.

ANALYSIS
“Home prices are continuing to rise at a 5% annual rate, a pace that has held since the start of 2015,” says David M. Blitzer, Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices. “The economy is supporting the price increases with improving labor markets, falling unemployment rates and extremely low mortgage rates. Another factor behind rising home prices is the limited supply of homes on the market. The number of homes currently on the market is less than two percent of the number of households in the U.S., the lowest percentage seen since the mid-1980s.

“Price movements vary across the country. The Pacific Northwest and the west continue to be the strongest regions. Seattle, Portland, Oregon and Denver had the largest year-over-year price increases. These cities also saw some of the largest declines in unemployment rates among the 20 cities included in the S&P/Case-Shiller Indices. The northeast and upper mid-west regions were at the other end of the ranking. The four cities with the smallest year-over-year prices gains were Washington DC, Chicago, New York, and Cleveland. The unemployment rates in Chicago and Cleveland rose from March 2015 to March 2016.”

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

ORLANDO, FL – Preferred Apartment Communities announced the acquisition of a 487-unit Class A multifamily community in Orlando, Florida constructed in 2008 known as Grandeville at Avalon Park. 

“This asset is an excellent addition to our growing Main Street portfolio.  Orlando is a great market for us and we are excited to be increasing our presence there,” said John A. Isakson, PAC’s Chief Capital Officer and CEO of the Main Street Apartment Homes subsidiary.

Main Street acquired this community through a wholly-owned subsidiary and financed the acquisition with a mortgage loan package from Prudential Capital Corporation.  The loan package is approximately $65.0 million, bears interest at a blended floating rate of 2.45% over the 30-Day LIBOR annually, matures in May of 2019 and is an interest only loan. 

 Upon completion of a value add program, Main Street plans to refinance the asset with a long term mortgage insured by HUD.

Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, it enters into forward purchase contracts or purchase options for to-be-built multifamily communities and makes mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. 

(RECAP: A proposed rezoning on a small cul-de-sac near Rose Hill Drive is the latest in a series of changes that has some in the neighborhood concerned they will be squeezed out by Charlottesville’s housing boom. “Most of the people in this neighborhood who are homeowners are my age or older,” said Evelyn Yancey Jones, 71, whose two-story home at 629 Rose Hill Drive has been in her family for nearly 100 years. “The seniors are struggling, so they don’t have any means to put the brakes on,” she said. Jones lived in Charlottesville during the time when houses on Vinegar Hill were torn down in the name of urban renewal. She wants city officials to look at more than just economics when making decisions about the future.)

BLOOMFIELD, CT – Marcus & Millichap announced its Institutional Property Advisors (IPA) division has arranged the sale of The Hawthorne at Gillette Ridge, a 246-unit luxury multifamily community in Bloomfield. The $52 million sales price equates to more than $211,000 per unit.

“The property was constructed on a 612-acre mixed-use campus in 2004 by a partnership between Cigna and The Bozutto Group,” says Victor Nolletti, an executive director of IPA’s Northeast and Florida team. “The construction quality and proximity to West Hartford, and to Hartford’s central business district, make The Hawthorne at Gillette Ridge one of the most desirable properties in the market.”

“The acquisition of this property gives the new owner significant value-add potential through high-end kitchen and bath upgrades,” adds Steve Witten, also an executive director of IPA’s Northeast and Florida team.

Nolletti and Witten represented the seller, Bouwfonds Hawthorne LP and procured the buyer, White Eagle Property Group.

The Hawthorne at Gillette Ridge is four miles from Interstate 91 at 2 Francis Way in Bloomfield near the region’s high-end dining, shopping areas and entertainment venues. Nearby major employers include United Technologies, the Hartford Financial Services Group, Aetna, St. Paul Travelers Cos., Hartford Hospital, Bank of America and St. Francis Hospital.

SAN ANTONIO, TX – Catalyst Multifamily Management, headquartered in Denver, Colorado and very active in Dallas / Fort Worth, Texas, is expanding into the San Antonio market.  On May 25th, Catalyst took over the property management responsibilities of three properties in San Antonio, totaling 390 units – Ashler Oaks Apartments, at 4100 Parkdale St built in 1971 and 150 units, Sierra Royale Apartment Homes at 6300 Rue Marielyne built in 1984 and 108 units, and Veranda Apartments at 7918 Jones Maltsburger Rd built in 1972 and 132 units. Takeover day went smoothly with the implementation of a new staff at the properties. 

Catalyst Multifamily specializes in B and C class multifamily property management and is especially strong with distressed and value add deals. 

All three properties are in great locations with easy access onto major highways, grocery stores and schools. Catalyst has an aggressive hands on approach with all properties in their portfolio and the team will immediately begin their proven methods for turning around these assets. Initiatives include traditional and grassroots marketing efforts targeting their desired tenants and a $4.5 MM renovation that will include curing deferred maintenance, new signage, landscaping, updating unit interiors, and pool upgrades across all three properties.

Cathy Finn, Vice-president and Managing Principal of Catalyst Multifamily Management, decided to take on the opportunity to turn this C+ asset around. “These properties should be B class deals.  Our goal at Catalyst is to take on properties that have high potential and a need for strong, well thought out and aggressive management plans.  Our property owners always see an immediate improvement in NOI, occupancy, quality of their assets and residents.  We push rents to their maximum level while maintaining strong occupancy.  Pushing value is what we do.  Typically our rents set the market.”

“We have seen what we can do in Dallas and Fort Worth so we are excited for the opportunity to expand into the San Antonio market and continue to grow the Catalyst Multifamily Management system” says Sherry Johnson, Vice President of Operations. “The market here is strong and we just had a very successful career fair here to staff Ashler Oaks, Sierra Royale, and Veranda and are proud of the training processes we implemented leading up to takeover day”.

Catalyst Multifamily Management, a subsidiary of MBP Capital, Inc. of Denver, Colorado and Dallas, Texas, has been owning and operating multifamily properties in the Dallas/ Fort Worth Metroplex since 2006 and will continue to actively acquire new properties into their management portfolio.