Multi-Housing News - October 2008 - (Page 6)

Welcome to the Next Real Estate Cycle Fortunately, the fundamentals for the apartment industry look good Where were you when the government announced its bailout of insurance giant AIG? The MHN team was with some of the industry’s brightest thinkers at the Multi-Housing World Conference and Exhibition in Denver. And there was no better place to be as key events contributing to the worst financial crisis since the Great Depression continued to unfold. In fact, one speaker commented that this Multi Housing World might have the honor of being the very first conference of the new real estate cycle. What can the multifamily sector expect going forward? In spite of the ongoing credit crunch, massive uncertainty in the real estate market, the disappearance of major financial institutions, and the conservatorship of Fannie Mae and Freddie Mac, the consensus at MHW was that this is a great business to be in. It’s time to put fears away and to focus on the opportunities at hand. “The supply and demand balance over the foreseeable future—what’s under construction and what we know is out there—looks awfully good for apartments,” noted Ronald G. Brock, Sr., president and CEO, Pierce-Eislen Inc. Jack Kern, Kern Investment Research Counselors; David Baird, Sperry Van Ness; Jay Harris, First Advantage SafeRent; and Richard Loope, the Master of Real Estate Development Program, Arizona State University—panelists at the conference’s first-ever Deal Expo (look for this feature again next year at Multi-Housing World in San Diego)—pointed out that a huge amount of product will be foreclosed and on the market. There are still deals out there to be done—but they’re going to be much smaller, take longer, and more people will be involved, the panel advised. Creativity will be necessary. So, they suggested, check foreclosure lists on a daily basis; contact lenders early and directly when the Notice of Default first comes up; expect a return to syndication; when buying debt, buy below face value; mitigate risk by pooling deals together; and demand more equity. There are a lot of broken condo deals waiting to be rescued—find a way to make them work. Panelists acknowledged that the shadow market continues to pose a threat (so much so that the NMHC is now offering to its membership a marketing pamphlet listing the benefits of professionally run apartment communities), but when former homeowners do move to apartments, or residents need to double up, offering storage to renters presents an opportunity for miscellaneous income. The apartment sector might also consider leasing clubhouse space during the day to independent daycare operators. MHN covered many aspects of the conference in MHN Online Daily, where we continue to provide commentary and analysis of the breaking news affecting the industry. If you haven’t signed up already for this free digital edition, please visit www.multihousingnews.com/newsletters where you can also watch exclusive video interviews taped in Denver with industry thought leaders. Much has happened in the few days since we returned. As we go to press, the battle over the $700 billion bailout is stalled, but the government has seized Washington Mutual and is now selling pieces to J.P. Morgan Chase. Never a dull moment. MULTI-HOUSING NEWS MHN VP BUILDING & DESIGN MEDIA GROUP Patrick L. Brennan patrick.brennan@nielsen.com ASSOCIATE PUBLISHER Natasha Selhi nselhi@multi-housingnews.com ADVERTISING REPRESENTATIVES Associate Publisher: West, Mountain and Southern States Natasha Selhi nselhi@multi-housingnews.com Account Executive: Northeast and Midwest States Douglas Runner douglas.runner@multi-housingnews.com Online Account Executive: Lis Perry lis.perry@nielsen.com 646-654-5526/fax: 646-654-5817 CLASSIFIED & GALLERY ADS Account Executive: Fatima Ruiz fatima.ruiz@nielsen.com 646-654-5763/fax: 646-792-7108 MARKETING DIRECTOR Kevin Marty kevin.marty@nielsen.com 516-682-6149/fax: 516-682-6166 ONLINE PUBLICATIONS www.multi-housingnews.com MHN Daily Newsletter MHN Property Management MHN Green Building & Design MHN Finance & Investment EXHIBIT BOOTH SALES & SPONSORSHIPS Account Executive: David Muirhead david.muirhead@nielsen.com 770-291-5432/fax: 770-777-8690 Multi-Housing World Conference and Expo Multi-Housing Forum REPRINTS The YGS Group Mike Shober 800-290-5460 ext. 129 MHN@the YGSgroup.com EDITOR-IN-CHIEF Diana Mosher dmosher@multi-housingnews.com EXECUTIVE EDITOR Keat Foong kfoong@multi-housingnews.com CREATIVE DIRECTOR Jonathan Marsland jonathan.marsland@nielsen.com ART DIRECTOR Michelle Matteson mmatteson@multi-housingnews.com MANAGING EDITOR Teresa O’Dea Hein thein@multi-housingnews.com ASSOCIATE EDITOR Erika Schnitzer erika.schnitzer@multi-housingnews.com CONTRIBUTING EDITOR Michael Russo ONLINE NEWS EDITOR Anuradha Kher anuradha.kher@nielsen.com MHN BLOG Erin Brereton www.multi-housingnews.com/blog Jack Kern jkern80124@gmail.com PRODUCTION MANAGER Jean Loesch jean.loesch@nielsen.com CIRCULATION Hallmark/ESP/ICN mhn@halldata.com LIST RENTALS Nikki Miller 646-654-7261 nikki.miller@nielsen.com Diana Mosher Editor-in-Chief We invite you to comment on MHN’s redesign and/or to share your own renovation challenges and successes. Diana Mosher can be reached at dmosher@multi-housingnews.com Correction In “Automated Rent Payment Takes Off” (August 2008), 95% of PropertyBridge’s clients accept credit cards for rent. The 2.5% we stated was referring to a typical adoption rate if high convenience fees are imposed on the residents to use cards. 6 October 2008 | Multi-Housing News | Producer of Multi-Housing World http://www.multi-housingnews.com http://www.multi-housingnews.com/blog http://www.multihousingnews.com/newsletters http://www.multihousingnews.com/newsletters

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