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Low interest rates created an unusual paradox for the multifamily industry in 2003. By making homeownership affordable, low rates hammered property owners on the revenue side. But they also lowered the industry's cost of capital, made development more feasible, and contributed to a trend toward...
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When demand exceeds supply, prices rise. That's one of the fundamental principles of economics. But it may not apply in the apartment market during the near term. The outlook for rent recovery in much of the nation doesn't look very promising, even after employment growth levels regain momentum and...
New York and Chicago have always been home to the highest level of high-rise condominium development in the United States. Their success is due to the buildings' close proximity to work, shopping, and restaurants. Miami and Honolulu also have been successful with this product type, because...
CCRC. ADL. IL. IA/IL. What does it all mean? If you don't know, you might want to think twice about entering the senior housing market. From the outside, senior housing might look a lot like traditional multifamily housing, but on the inside, it's an industry with its own set of operational...
For years, apartments have been designed without regard to building efficiency. Commercial projects have always considered the net-to-gross ratio (the ratio of net rentable space versus total gross building space) and are usually 82 percent to 85 percent efficient, while apartments have been far...
This past winter, the Mid-Atlantic states were blasted with snow and rain. And, as any developer knows, weather can be your worst enemy when it comes to building on time. As a result, new construction starts and openings were pushed back. But in the student housing industry – particularly on-campus...
It's a scenario that's not difficult to picture. A Washington police officer – a single mother who is responsible for keeping the nation's capital safe in this era of heightened security – cannot afford to live anywhere close to her precinct. Because many two-bedroom apartments in the close-in...
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The gap between wages and rents continues to broaden and deepen. In 2002, there wasn't one jurisdiction in the United States where a minimum wage job provided enough income for a household to afford the fair market rate for a two-bedroom home.
It was not exactly how Randall Friend, Kyle Martin, and Kenneth Melton imagined they would be closing their first big real estate portfolio. The trio, who are partners in Eagle Real Estate Group in Anaheim, Calif., had just established their business plan and, almost immediately, made a successful...
At a time when occupancy has softened and rents have stagnated or dropped in most U.S. markets, apartment owners and managers are struggling to push every penny to the bottom line.
Anyone familiar with New York City would agree that the it wouldn't be what it is today without Central Park. In 1857, Frederick Law Olmstead – the father of American landscape architecture – submitted the Greensward Plan as the winning design for the park. Nestled among an urban environment of...
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While every market has experienced the effects of economic downturn – the national vacancy rate has almost doubled from its low point in 2000 – those with a heavy reliance on technology, telecom, and travel have been hit the hardest. These industries have had the most severe job losses, which...
All too often developers have a relentless urge to squeeze what is viewed as extraneous square footage out of projects during the planning stage in an attempt to stretch the almighty development dollar. It all seems to make sense late at night while brainstorming and penciling out a new pro forma...
A more sophisticated renter is changing the face of multifamily design. This renter seeks convenience, state-of-the-art amenities, and luxury interiors commonly found in single-family homes. Multifamily developers can successfully appeal to this renter-by-choice market that is willing to pay for...
On a summer's morning at Mountainside Apartments, an affordable housing community in Rancho Cucamonga, Calif., the property is alive with activity as kids play at the pool, ride bikes, roller skate, and simply hang out. But around noon, things start to settle down. Many resident children head...
It's been more than three years since the technology bubble burst on Wall Street. With tech stocks plummeting, investors were looking for secure places to put their money and real estate suddenly became a hot item. SSR Realty Advisors Inc., a real estate investment company with headquarters on the...
This past winter, the Mid-Atlantic states were blasted with snow and rain. And, as any developer knows, weather can be your worst enemy when it comes to building on time. As a result, new construction starts and openings were pushed back. But in the student housing industry – particularly on-campus...
Tucked away in the trees across from an open field is the headquarters of Bostic Construction Inc. – a Colonial-style house with a design borrowed from Thomas Jefferson. Go inside at 7:00 a.m. on a Sunday morning and you'll probably find company president Mel Morris. Sometimes, he is listening to...
Bill Donges has always been good at the basics – management and organization – which has enabled him to take on new challenges. Throughout his career, he successfully ran chemical and manufacturing businesses, distribution centers, dot-coms, and software and electronic start-ups. Although Donges...
With a cup of Starbucks coffee in one hand and his BlackBerry cell phone in the other, Paul Klaassen settles into a chair to enjoy a much-needed moment of peace. After taking a swig of his coffee and stealing a quick glance at his phone, the founder, chairman, and CEO of Sunrise Senior Living...
About four years ago, Carl Dranoff, president of Dranoff Properties, couldn't find anyone to drive in a car with him in downtown Camden, N.J. Camden is the state's poorest city and is known for crime and dilapidated buildings. No one wanted to live there.
Admitting that something is wrong and you need to make improvements is a hard thing for any executive to do. Yet Thomas W. Toomey, president and CEO of United Dominion Realty Trust (UDR), one of the largest multifamily real estate investment trusts (REIT) in the country, comes by it naturally. He...
For many developers in the multifamily industry the old saying bout them is true – if you give them land, they will build on it. While Marilynn Duker admits that she is a deal junkie at heart, as the president and COO of Shelter Development LLC, she doesn't let herself get talked into a riskier...