Multi-Housing News - October 2008 - (Page 22)

have limited new construction. Permits for only 427 new units were issued in the second quarter of 2008. Owners/sellers of Kansas City apartments tend to want to ignore that interest rates have climbed well above 6.25 percent, pushing cap rates even higher. They tend to focus more on the hefty rent raises. Owners are also benefiting from the historically low level of new apartment properties being developed. By Hendricks & Partners’ most recent count, only about 500 new units will enter lease-up this year, with fewer than 200 slotted for completion next year. There is a small cloud in this sky—about 1,800 new units are slated for rent-up in 2010. The conversion of rental units into for-sale housing and the construction of new condo units has come to a screeching halt. Lack of available mortgage dollars, concern for the potential for declining values and a general slowdown overall in the “for- Kansas City Vacancy & Rent Trends Financing as Unique as the Communities You Develop. If you’re looking to do business in Virginia, look no further than the Virginia Housing Development Authority (VHDA). We’re flexible, customer-focused and able to tailor a financing package to fit your project’s special needs. Another Success! Restoring the historic Hancock building in downtown Roanoke required intricate, multi-source financing. VHDA was able to combine historic tax credits with a one-time economic development performance grant and funds from various VHDA programs. Read the full case study at vhda.com/casestudies. sale” housing market have even resulted in a few “broken” condo deals to be offered as rentals, and at least one complex being offered to investors as a “rental until the market turns” investment. The one remaining strong condo submarket is the Country Club Shopping District, where the famed J. C. Nichols built an open-air shopping mall in the 1920s; this remains the city’s most desirable retail area. There, mid-rise and high-rise units still command relatively high prices, and remain in strong demand, due to the convenience offered by the 24square-block shopping district and to the fact that barriers to entry practically guarantee long-term retention of values. Buyers from around the country, longing for the stability of the Kansas City market with our “no bust, no boom” history, have been flocking to the few deals reaching the market here. The near future bodes well for the apartment market in Kansas City, where more than 14,000 jobs have been added in 2008, and another 26,000 are to be created in 2009. A significant part of the growth comes from Kansas City’s position as a burgeoning distribution hub, led by the Burlington Northern Santa Fe Railway’s new intermodal hub in Johnson County, Kan., the most affluent portion of the metro bi-state area. Similar facilities are being developed at the airport. MHN Ralph A. DePasquale is a senior investment advisor in Hendricks & Partners LLC’s Chicago office, and Phillip Brimble is an associate partner in the firm’s Kansas City, Mo. office. AFTER BEFORE For more information, please call: Brenda Brophy 804-343-5651 David Donahoe 804-343-5668 Costa Canavos 804-343-5735 Virginia Housing Development Authority | vhda.com For more information, visit www.multi-housingnews.com/productinfo MHN ONLINE See more market reports at www.multi-housingnews.com/marketdata 22 October 2008 | Multi-Housing News | Producer of Multi-Housing World http://www.vhda.com/casestudies http://www.vhda.com http://www.vhda.com http://www.multi-housingnews.com/marketdata http://www.multi-housingnews.com/productinfo

Table of Contents for the Digital Edition of Multi-Housing News - October 2008

Multi-Housing News - October 2008
Contents
From the Editor
MHN TV Premieres
Market Pulse
Special Report: MHN 2008 Design Awards
Development & Design: Mirabella
Market Report: Chicago, Kansas City
Property Management: Tracking Residents’ Tech Wish Lists
Finance: Freddie Mac/Fannie Mae
Tech Report: Marketing Web sites
Products: Appliances

Multi-Housing News - October 2008