Author: ipgocorp

SEATTLE, WA – More millennials age 24-34 live with their moms than at any time in the last decade, according to Zillow’s latest analysis. In the U.S., 21 percent of 24-34 year olds live with their moms, a number that’s been steadily increasing since 2005, when just 13 percent lived with their moms.

El Paso, TX has the biggest percentage of millennials living with Mom, almost 34 percent — a 12 percentage point increase since 2005. Other places with a large percentage of millennials crashing with their moms are Miami, Los Angeles, Philadelphia, and Ventura, Calif.

U.S. rents are on the rise and incomes have not kept up, especially for young adults, who have faced a sluggish job market over the last decade. Over the past year, rents have increased almost 3 percent, while incomes have increased just 1.8 percent. The decision to stay with Mom could be driven by affordability or culture. In general, Hispanic families are more likely to live in multigenerational households, and many of the places with a large share of young adults living with Mom also have large Hispanic communities.

“With today’s high rents and lagging income growth, many young people are having trouble setting aside enough money to buy their own home, delaying home ownership,” said Zillow Chief Economist Dr. Svenja Gudell. “Living with their parents may allow young people to continue to do things like continue their education, save enough money for first and last month’s rent, or save for a down payment.”

The median rent in the U.S. is $1,389 per month. Zillow forecasts rents to increase about 3 percent over the next 12 months to a Zillow Rent Index of $1,426.

Omaha, which made Zillow’s recent list of hot housing markets to watch in 2016, has the smallest percentage of millennials living with Mom, — 11 percent. Other markets with a small percentage of millennials living with Mom include Seattle, Denver, and Portland.

VIRGINIA BEACH, VA – Ginkgo Residential announced the acquisition, through its investment affiliate, of Arbor Trace Apartments located in Virginia Beach, Virginia, which transaction closed May 4, 2016. The approximately 7.75 acre property is comprised of 148 two bedroom, garden style apartments, and features a swimming pool, wellness and fitness center, a dog park and a grill and picnic area.

“Located in the Hilltop area of Virginia Beach, Arbor Trace is adjacent to an abundant and diverse mix of retail, restaurant, office, health care, and recreation opportunities. When combined with the fact that the property has easy access to I-264 and is only three miles from the ocean front, this makes Arbor Trace a convenient place to live with significant employment opportunities in the immediate area. Arbor Trace is a near perfect fit for our strategy of providing high quality workforce housing,” states Philip Payne, CEO of Ginkgo Residential.

Ginkgo Residential is an industry leader focused on combining our core business of providing reasonably priced, high quality workforce housing with energy efficient programs that are environmentally sensitive. Ginkgo Residential is a significant operator of apartment communities located primarily in the Southeast region of the United States.

PHOENIX, AZ – Independence Realty Trust announced that on May 5, 2016 IRT sold a 360 unit apartment property located in Phoenix, Arizona for $47.0 million. IRT received net cash proceeds of approximately $18.4 million, after transaction costs and full repayment of the debt underlying the property.

The property, built in 1999 and renovated in 2006, generated $2.4 million of net operating income over the 12 months preceding the sale. IRT will utilize the net cash proceeds to reduce its outstanding indebtedness and for general corporate purposes.

The property sale is part of IRT’s previously announced strategy to sell properties that fall outside its geographic focus. IRT expects to recognize a gain of approximately $15.4 million associated with the sale in the quarter ending June 30, 2016.

Independence Realty Trust is a real estate investment trust that seeks to own well-located apartment properties in geographic submarkets that it believes support strong occupancy and the potential for growth in rental rates. IRT is advised by a wholly-owned subsidiary of RAIT Financial Trust.

(RECAP: The Consumer Financial Protection Bureau unveiled a proposed rule Thursday to restrict the use of arbitration clauses in consumer financial contracts, a step that would shift power to consumers and away from companies for a wide range of financial products from credit cards to bank accounts to private student loans. The CFPB aims to prohibit financial companies from using mandatory-arbitration clauses in contracts with consumers as a way to block class-action lawsuits and force customers into private negotiations to solve disputes. The clauses have become standard in recent years, aided by a string of court rulings that have limited consumers’ ability to file lawsuits.)

NEW ORLEANS, LA – With over 1.5 billion daily searches performed on Facebook and over 2 billion daily searches on Twitter, social search is quickly  gaining ground to the over 3.5 billion daily searches performed Google. With those astounding statistics, it’s now more important than ever  to optimize your social media profiles so that your prospective residents have the ability to find your community on search engines as well as social platforms.

Not all social media platforms are a good fit for the multifamily industry, but you can start with claiming and optimizing your profiles for the big three: Facebook, Twitter, and Google+. Once you claim your profiles, you must provide as much information as you can. Make sure your business name, address, phone number, and links to your website are consistent across all of the platforms and match the information on your website. Also, you need to choose the most appropriate categories for your Facebook page and Google+.

Kerry W. Kirby, CEO of 365 Connect, a leading provider of award-winning marketing, leasing, and resident technology platforms for the multifamily housing industry explained, “NAP (name, address, and phone number) consistency is critical across all of your social media channels. It is important to look at your community’s website as the hub of all relevant information while regarding your social media pages as your distribution system for that information. You can maximize the impact of your social outreach through integrating your social media channels to your website.”

Once you achieve NAP consistency, you will want to write enticing descriptions for each of your social profiles, using relevant keywords. A thorough understanding of your prospects and the market will come in handy. Think of words that people may be using to search for your community and make sure to use  them throughout your description. If you need some ideas, you can use a tool like Google Keyword Planner for keyword research. On Twitter, you have the ability to hashtag your keywords in your profile, giving your community’s profile a boost when people are using the keywords in their search terms.

“Well written content is key when optimizing your social media pages. It is important to create content that speaks to your end user. After you create this quality content, it is also vital to inform both the end user and search engines that you are an apartment community. Without clear content describing what your community provides, you can easily end up indexed in the wrong category,” Kirby elaborated.

Next, be sure to add as many branded photos as you can. The more pictures you upload, the better. You must focus on the quality of the images. You can upload hundreds of pictures, but if they aren’t appealing or compelling, prospective residents will not be impressed. Put your best foot forward, and whenever it is possible include several interior and exterior photos of your community. Adding photos of your management and leasing team to Facebook and Google+ would also be a great idea.

However, the most important step in optimizing  your social profiles is  having your business verified on Google+ and Facebook. Having a verified Google My Business account (Google’s dashboard for business) is crucial to local SEO and will have a direct impact on your property’s rankings in local search. This verification proves that you are the rightful owner of your community’s Google+ Business Page and will increase your trustworthiness with the search engine as well as on Google+, making it easier for your community to appear in search results. On Facebook, the verification seal also imparts credibility and boosts your chances of showing up in  prospects’ search results and feeds.”

Kirby concluded, “The fact remains that social media has impacted your community’s organic reach and will continue to do so. The key to having a viable search marketing strategy is to determine whether or not it functions synergistically with a strategic social strategy. The first step in providing your community with the boost it needs to compete on Google and in the search results of popular social platforms is a robust and complete social profile.”

BOSTON, MA – WinnCompanies, an award-winning multifamily property development and management company, announced that WinnResidential has brought 48 California properties totaling 4,420 apartments into its property management portfolio on behalf of Highridge Costa Investors (HCI).

To ensure a smooth transition for residential operations, the management takeover was completed in three phases over a period of six months, absorbing properties in and around Los Angeles, Bakersfield, Fresno, Merced, San Jose, San Francisco and Sacramento.

“We’re pleased to expand our partnership with the world-class owner at HCI and to have completed the ambitious transition of a portfolio that stretches across almost 400 miles,” said Deirdre Kuring, president of WinnResidential. “Our goal is to exceed expectations for adding value to these properties and improving the quality of life for our residents.” 

Based in Gardena, CA, Highridge Costa Housing Partners and Highridge Costa Investors specialize in the development, financing, construction and asset management of affordable and mixed-income housing for families and seniors utilizing low-income housing tax credits, as well as other types of public and private financing. HCI ranks 48th on the National Multi Housing Council’s (NMHC) list of the nation’s largest apartment owners and managers.

“We have been delighted with the quality of property management services WinnResidential has provided to our company and the residents of our six apartment communities in Arizona and look forward to their increased involvement with us now in California,” said Michael M. Snowdon, Vice President of Asset Management for HCI. “Their strong passion for achieving excellence mirrors that of our company.”

The HCI assets now being managed by WinnResidential in California are income-restricted LIHTC communities. More than 100 people were hired to cover the 48 sites, including two new senior property managers and additional human resources, financial and compliance staff, and regional maintenance supervisors.

WinnResidential, which manages a national portfolio of more than 98,000 units at 570 properties, won the right to manage the California portfolio following two years of strong residential satisfaction and successful financial management of six HCI properties in Arizona.

In California, WinnResidential manages 91 residential properties in totaling 9,100 apartments in every category, from market rate units to public housing. In addition, Winn Residential Military Housing Services manages 613 units of privatized military housing at Los Angeles Air Force Base in San Pedro as part of a joint venture with Lendlease.

CHICAGO, IL – Lowe Enterprises Investors, in joint venture with an investment client, has acquired the 210-unit Fairways of Naperville apartment community in an off-market transaction. Located at 970 Fairway Drive in Naperville, IL, 30 miles west of Chicago, the 17-acre garden style property includes thirteen two-story residential buildings as well as a clubhouse, fitness center and on-site leasing office.

“The Fairways of Naperville is ideally located for employees working along the renowned Illinois Technology Corridor on Interstate 88, as well as Chicago commuters desiring a quieter lifestyle outside of the city,” said Andy Sands, managing director of Lowe Enterprises Investors. “This is an exceptional property that has not been renovated since it was built in 1986. We plan to substantially refurbish and modernize the units and facilities and enhance the resident amenities, to reposition it in this strong leasing market that has a very low vacancy rate and high demand.”

Built in 1986, Fairways of Naperville offers one-, two-, and three-bedroom units all with balcony or patio and washer/dryer. The units and common areas have not been renovated since opening. Approximately $4 million will be invested in a comprehensive capital improvement program that includes adding a dog park and barbeque grills to the property’s abundant outdoor park-like gathering spaces while updating the existing facilities including the clubhouse, swimming pool and deck, fitness center, tennis courts as well as refreshing the landscaping and building exteriors. Unit interiors will be substantially transformed in a contemporary design scheme and color palette with new carpet and flooring, new appliances, upgraded kitchen and bathroom cabinets and countertops, new doors, fixtures and paint.

The Fairways at Naperville is located near both Route 59 and Route 34 and is walking distance to the Route 59 Metra station on the BNSF Line, offering express service to downtown Chicago in as little as 35 minutes. Naperville boasts a top-rated school district, proximity to multiple major employment centers and a vast variety of retail and entertainment venues.

LEI’s acquisition team was led by Andy Sands. Greystar has been retained to provide property management services. Pete Evans of Moran & Co. represented the seller, Naperville Housing Partners Limited Partnership.

The transaction is the latest in LEI’s active expansion of its multifamily investment portfolio in select markets across the country. In the greater Chicago area, the firm’s portfolio includes the 612-unit Bourbon Square apartment property in Palatine, IL acquired in late 2014. The firm’s most recent acquisitions include the 264-unit Hawthorne at Bridford apartment community in Greensboro, NC and the Hamilton Ridge Apartments, a 178-unit apartment community in Raleigh, North Carolina. LEI is also a joint venture partner on The Gramercy apartments, a 203-unit community being developed in the Glenwood South area of Raleigh. LEI continues to seek multifamily and commercial acquisition and development opportunities nationwide.

NEW YORK, NY – Mortgage rates avoided a third straight increase, with the benchmark 30-year fixed mortgage rate sliding to 3.77 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.20 discount and origination points.

The larger jumbo 30-year fixed held steady at 3.76 percent, while the average 15-year fixed mortgage pulled back to 3.01 percent. Adjustable mortgage rates were also lower, with the 5-year ARM and 7-year ARM each reversing course to 3.14 percent and 3.37 percent, respectively.    

After moving higher in each of the two preceding weeks, mortgage rates retraced some of that ground. The pullback in mortgage rates began in immediate response to last week’s Federal Open Market Committee meeting where the Fed was tight-lipped about interest rate intentions. That, coupled with some evidence of weakness in the U.S. economy – such as the 0.5 percent growth rate in the first quarter – kept mortgage rates on the downswing over the past week. The opposite can also happen though, if a strong jobs report heats up talk of a summer rate hike by the Fed, both bond yields and mortgage rates would trend higher in coming weeks. Mortgage rates are closely related to the yields on long-term government bonds.

At the current average 30-year fixed mortgage rate of 3.77 percent, the monthly payment for a $200,000 loan is $928.50. 

SURVEY RESULTS

30-year fixed: 3.77% — down from 3.83% last week (avg. points: 0.20)
15-year fixed: 3.01% — down from 3.05% last week (avg. points: 0.16)
5/1 ARM: 3.14% — down from 3.21% last week (avg. points: 0.21)

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. Half of the panelists predict mortgage rates to continue falling, while one-third expect mortgage rates to remain more or less unchanged in the coming week. Just 17 percent forecast a rebound in mortgage rates in the next seven days.

(RECAP: A recent USC housing expert’s study reveals that Millennials have begun moving out of downtown area and into more single-family homes as the market loosens and the economy improves. Millennials in cities nationwide have flocked to fill downtown apartments over the past decade, but the study predicts that the real estate market should brace for a major migration out of core urban areas. Last year marked a major turning point as the country’s urban centers reached “peak” millennial saturation. The study, published in the journal Housing Policy Debate, examined population data in the American Community Survey, the Current Population Survey; building permit data from the U.S. Census Bureau; and employment data from the Bureau of Labor Statistics, as well as surveys by the National Association of Realtors.)

(RECAP: The FHFA announced Wednesday it had raised a cap on the amount of multifamily loans Fannie Mae and Freddie Mac can buy from lenders, boosting it to $35 billion effective immediately. The adjustment from the previous cap of $31 billion is warranted “based on increased estimates of the overall size of the 2016 multifamily finance market,” the agency said. The cap is supposed to ensure the government-sponsored enterprises don’t crowd private investors out of the multifamily market. The multifamily cap was set last May when FHFA decided to exclude subsidized affordable housing, manufactured housing communities, small multifamily properties (5-50 units) and certain other affordable rentals from the limit. Those exclusions will remain in place. Due to these exclusions, Fannie financed $42.3 billion in multifamily loans and Freddie financed $47.3 billion in 2015 without exceeding the cap. The Mortgage Bankers Association welcomed FHFA’s decision.)