Multi-Housing News - June 2009 - (Page 6)

executive insight Acquisition Strategy Pacific Property Assets (PPA) provides long-term affordable housing, enabling investors to invest via secured promissory notes backed by existing apartment buildings. MHN Executive Editor Keat Foong talks to Michael Stewart, CEO, about the effects of the economic crisis. How has your value-added acquisition strategy changed? We are still looking at value-added properties. Most fall into the current status of Class C to Class D properties. The principal change is that today we are looking at properties that typically have greater issues with vacancy and deferred maintenance. We have not changed our expectation of excellent returns. PPA is still looking for capitalization rates of 10 Q&A percent or above, following renovation. As a compensation for present economic conditions, we’ve revised our model to allow more rent concessions and higher vacancy rates. We’re acquiring properties that have delinquent loans and using those loans to fund a good portion of the acquisition cost. Today it’s very difficult to obtain new financing that makes sense. Is this a time to sell or to buy—or neither? And do you see foreclosed multifamily properties as a good investment? The bottom may still be six to 18 months away, although we feel that most of the air is already out of the market. It’s a good time to buy—if done carefully. Today’s transactions, especially those involving distressed assets, take a lot of time to negotiate and close. There are certainly more distressed properties today—and they can represent great opportunities. However, the key in turning these distressed properties into smart investment opportunities is putting into place a strong, local management team that will properly run these assets. MHN To comment, e-mail keat.foong@nielsen.com. MHN ONLINE “Q&A: Obama Administration is More Focused on Affordable Housing.” www.multi-housingnews.com/Obama Dollar by dollar, you’ll save big with the most cost-effective payments solution in multifamily Multiple payment types mean great value for you and your residents Looking to apply the lowest cost payment type to each transaction with your residents? From ACH and check scanning to credit/debit and cash payments, PropertyBridge reduces your fees, improves community staff productivity, reduces fraud, and gets your organization paid faster. The result is unparalleled ROI on the automated payment solution that residents and CFOs love. That even includes cash payments at over 40,000 MoneyGram agent locations nationwide. No wonder PropertyBridge is the number one choice in portfolio-wide payments for the multifamily industry’s leading firms. Customized marketing & adoption programs to optimize your ROI Unparalleled compliance & security so your business is never at risk Integration with your accounting system means reduced administrative tasks It all adds up to an unbeatable combination of ACH, credit/debit, check scanning, and cash solutions, only from PropertyBridge, a MoneyGram Company Get a FREE guide on reducing resident payment costs with increased adoption. Just call 866 RENT 002 or visit www.propertybridge.com/guide For more information, visit www.multi-housingnews.com/productinfo 6 June 2009 | Multi-Housing News | Of ficial Publication of Multi-Housing W orld http://www.multi-housingnews.com/Obama http://www.propertybridge.com/guide http://www.propertybridge.com/guide http://www.multi-housingnews.com/productinfo

Table of Contents for the Digital Edition of Multi-Housing News - June 2009

Multi-Housing News - June 2009
Contents
From the Editor
Executive Insight: Acquisition Strategy
Investment: Construction Conundrum
Property Management: Tech Tools
Strategy: Property Management
Case Study: TOD
Technology: Resident Payments
Turning Over Apartments

Multi-Housing News - June 2009