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APARTMENT FINANCE TODAY
Shabnam Mogharabi
Shabnam Mogharabi,
Editor
smogharabi@hanleywood.com

I’ve been thinking recently about the importance of candid conversation. A lot of people say that they are upfront and direct and honest. I’m not so sure. I think when push comes to shove, we have a hard time opening up and being real—in our personal and professional lives. I go to so many industry events where executives from large national REITs (and even smaller, local players) dish the party line. They rarely ever talk about the real problems they’re facing in their operations. Which I find disappointing.

I’m on a mission to change that. Later tonight, I’m having dinner with the CEO of a national third-party manager and value-add operator tonight. The food will be good, the conversation will be lively, but I’ll also be donning my journalist cap to ask him to tell it to me like it is: As rents continue to stay flat or decline, are his margins shrinking? By how much? How is he navigating the world of social media? Does he really think it’s going to boost the bottom line—or is that wishful thinking? And is he engaging in any redevelopment activity these days? If so, where is the financing coming from? Ultimately, what are the real issues that keep him up at night?

Why the Grand Inquisition? Because as we continue to navigate the ups and downs of the Great Recession, we need to get real about what’s going on in our companies and our industry. Let’s delve into the true problems and concerns we all have. If we don’t, we’ll only be kidding ourselves. Pretty soon, we’ll all believe what we tell others about our companies. And that’s not healthy for anyone.


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WEB EXCLUSIVES:
Industry Sees FHA Slowdown
Jeff Gray thought his project was a homerun. He wanted to build a workforce deal amid luxury apartments in the shadows of a Houston employment engine—The Texas Medical Center. And, he had a REIT, Houston-based Camden Property Trust, as a sponsor. But when the market turned in 2007, he put on the brakes. Then, seeing great demand potential for 2012 and beyond, Gray revisited doing the deal under the FHA 221(d)(4) program in 2009.
FULL ARTICLE

Bridge Building: Debt for Transitional Assets is Coming Back
The bridge loan market is starting to heat up, as providers see more opportunity in lending to transitional assets and distress acquisitions.
FULL ARTICLE

First Quarter Sales Volume Rises, But Questions Remain
Most years, apartment owners and brokers would be doing somersaults if they enjoyed year-over-year sales increases of 50 percent. This year, a report from New York-based research firm Real Capital Analytics saying that sales volume jumped $15.4 billion in the first quarter of 2010—a 50 percent increase over the first quarter of 2009—was met with muted optimism.
FULL ARTICLE

Ex-GSE Insiders Debate the Future of Fannie, Freddie
The entire structure of the nation’s housing finance system is up for play as Congress begins its debate on the future of Fannie Mae and Freddie Mac. But the next generation of housing finance will be forged at a time when partisan divides are as deep and heated as at any time in recent history.
FULL ARTICLE

California Dreaming: Outlook Varies for Northern, Southern Parts of State
In the past few months, Ed Lange, executive vice president and chief operating officer at San Francisco-based BRE Properties, has been noticing an interesting trend at some of his properties.
FULL ARTICLE

Lack of Apartment Transactions Holding up REIT IPOs
An expected spate of initial public offerings from apartment real estate investment trusts has been sluggish, despite capital availability in the equity markets and investor interest in liquidity. The reason? A continued choke hold on the volume of multifamily dispositions already subjected to extreme bid pressure from existing traded and non-traded REITs and private companies with established acquisition funds.
FULL ARTICLE

NMHC Tech Spending Survey Sees Move to Outsourcing
In a report released April 15 updating a 2008 survey on how multifamily technology executives allocate their budget dollars, the Washington, D.C.-based National Multi Housing Council finds spending on outsourcing has nearly doubled, comprising 23.63 percent of apartment IT budgets in 2009, compared to only 12.6 percent in 2008.
FULL ARTICLE

Housing Moves Further Out of Reach
Wages are falling and rents are rising to create an increasingly wide gap in how much people earn and the amount needed for an affordable, decent home, according to the National Low Income Housing Coalition.
FULL ARTICLE

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To reach APARTMENT FINANCE TODAY Editor Shabnam Mogharabi, e-mail smogharabi@hanleywood.com

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