Washington, D.C.—Recently Senate Banking Committee Chairman Tim Johnson (D) and Ranking Member Mike Crapo (R) drafted the Federal Housing Administration Solvency Act of 2013. If passed, this bill would have a direct impact on Fannie Mae and Freddie Mac and calls for the creation of a new enterprise called the Federal Mortgage Insurance Corporation (FMIC).
MHN talks to Willy Walker, CEO of Walker & Dunlop, about this new proposed legislation and how the bill could affect multifamily if it passes.
When we think of LEED, we typically think in terms of class-A office buildings in the CBDs of our nation’s top-tier cities, such as New York, Los Angeles or Chicago. But what about the vast stock of existing buildings outside of that profile? What are the sustainability options for class-B assets in the outskirts of St. Louis, or an existing multifamily property in Oklahoma City? Where do they fit within the relatively narrow spectrum of potential LEED ratings and programs?
The fact is that LEED certification fails to address our nation’s huge inventory of multifamily buildings. Neither does it allow for many assets that are not class-A or better.
In fact, our research shows that, of the total commercial real estate stock in the United States—roughly 84 billion sq. ft., according to CoStar, not counting specialty, sports and entertainment facilities—LEED certification addresses only 3 percent of the inventory. That essentially excludes something on the order of 81 billion sq. ft. nationwide and renders the program of no relevance to the vast majority of industry practitioners. LEED was and remains groundbreaking. But its scope is narrow and the math is inescapable.
By Summer Gell, Partner Engineering and Science Inc.
(MARCH 21, 2014) Multifamily housing investors’ options for financing sources have been shifting lately, and Fannie Mae’s recent major revisions to the Multifamily Selling and Servicing Guide–which went into effect in February 2014–are adding another layer of complexity to the multifamily lending landscape.
Fannie Mae’s Guide revisions included underwriting standard changes in addition to significant changes to the third-party engineering due diligence required for multifamily mortgage loans, more specifically the policies for Physical Needs Assessments (PNA, also called a Property Condition Assessment by other lenders) and Seismic Risk Assessments (SRA) for properties in high risk seismic areas.
Existing home sales dropped by 0.4 percent month-over-month in February, according to the National Association of Realtors on Thursday, to an annualized rate of 4.6 million units, compared with 4.62 million in January. The February 2014 rate is also 7.1 percent lower than the same month last year. In fact, it was the lowest monthly rate since July 2012.
(Reuters) – U.S. inflation was muted in February and housing starts fell for a third straight month, giving the Federal Reserve plenty of room to keep interest rates low even as it scales back the amount of money it is pumping into the economy.
The data, which came as the Fed opened a two-day policy meeting, painted a picture of sluggish economic growth in the first quarter as unseasonably cold weather disrupted activity. A jump in building permits last month, however, also offered cautious optimism for an acceleration once the weather warms up.
MARCH 17, 2014 | As of December 2013 there were 738 LEED-certified industrial manufacturing facilities worldwide, representing 195 million sq. ft., with another 1,335 facilities representing a further 343 million sq. ft. in the process of obtaining LEED certification. In addition, in 2012 the USGBC formed the LEED Manufacturing User Group, a group of companies committed to applying LEED to their facilities and sharing resources, expertise and best practices with each other. The user group is comprised of Intel Corp., Colgate Palmolive Co., Johnson Controls, Kohler, Procter & Gamble, Siemens Industry Inc., CH2M Hill, URS and UTC Building & Industrial Systems, and is working to leverage LEED to help design and build sustainable manufacturing facilities, enhance collaboration between USGBC and the business community and integrate LEED into their global sustainability strategies.
Sustainability is pretty clearly one of the world’s most important goals; but what groups can really make environmental progress in leaps and bounds? Chris McKnett makes the case that it’s large institutional investors. He shows how strong financial data isn’t enough, and reveals why investors need to look at a company’s environmental, social and governance structures, too.
One of the biggest problems facing low-income families in the U.S. today is a lack of affordable housing.
According to a recent report by the Joint Center for Housing Studies at Harvard, more than 7 million low-income households now spend more than half of their income for rent, which leaves little money for anything else. And the situation is expected to get worse.
Now, a coalition of nonprofit groups is trying to turn things around with a new, more business-like approach to buying real estate. They hope to preserve housing units that low- and moderate-income families can afford.
[JANUARY 15, 2014] Demand is up across the board as borrowers seek to buy debt back from special servicers; recapitalize properties; access capital for tenant improvements; or perhaps reestablish business plans for properties, notes Josh Zegen, managing member and co-founder of Madison Realty Capital in New York City. In addition, there is a healthy supply of “transitional” deals getting done for acquisition, rehab and new construction. Borrowers for those types of transactions often utilize bridge and mezzanine capital as a source of financing as they work to stabilize properties and improve NOI before going out and seeking permanent loans.
The due-diligence or inspection period is a very important time when purchasing a property. The period allows you to access to the property onsite and makes records available so you are able to verify the information and perception you have about the property you’re about to purchase.
Before purchasing a property, it’s critical that you take the necessary actions so that you can make an informed decision on whether the condition, operations and financial picture of the property are as you were made to believe.