Features

InterFace Student Housing Conference Brings 1,200 Student Housing Executives to Austin

by Katie Sloan April 18, 2016

AUSTIN, TEXAS — The 8th annual InterFace Student Housing Conference concluded Friday after two-and-a-half great days of networking and educational sessions from leaders across all facets of the industry. The conference began Wednesday, April 13, with the SHB Open Golf Outing at Barton Creek Resort & Spa and then moved to the sixth floor of the Hilton Austin, where a record-breaking number of attendees — 1,200 — networked, discussed and dined over a range of industry topics. Speed Networking kicked off the afternoon, where over 100 industry experts participated in short, one-minute conversations designed to spur discussion and foster budding new relationships. The group then moved into over 25 “InterFace+info” roundtables to discuss a range of industry-relevant topics, from “Who’s Buying? Who’s Selling? An Investment Market Update” to “How to Win a Woman’s Lease” and “Wi-Fi & Bulk — The New World of Individual Bandwidth.” A cocktail reception followed the late afternoon roundtables, where attendees were able to continue to build new relationships and explore a variety of booths from exhibitors. A Record Breaking Year After a networking breakfast and workshop, the conference’s panel sessions picked up Thursday morning with a consortium of CEOs from the industry’s top companies in a “Power Panel.” Moderator …

April 18, 2016

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ULI Forecast: Property Transaction Volume to Decline Nationally Over Next Three Years

by Christina Cannon April 14, 2016

WASHINGTON — U.S. commercial property transaction volume is expected to decline over the next three years to $475 billion in 2018, according to a new economic forecast from the Urban Land Institute (ULI) Center for Capital Markets and Real Estate. The latest ULI Real Estate Consensus Forecast, a semi-annual outlook, is based on a survey of 48 of the industry’s top economists and analysts representing 36 of the country’s leading real estate investment, advisory and research firms and organizations. The survey provides forecasts on broad economic indicators such as real estate capital markets, property investment returns, vacancy and rental rates and housing starts and prices. The recently released consensus forecast calls for continued economic expansion over the next three years, but at a somewhat slower pace than the prior two years. It also anticipates continued commercial price appreciation and positive returns, but at more subdued and decelerating rates, and above average but decelerating rent growth rates in all property sectors. “Compared to six months ago, real estate researchers are predicting slower economic growth, slipping real estate fundamentals and lower returns from both the public and private markets,” says William Maher, ULI leader, survey participant and director of North American strategy for …

April 14, 2016

Features Loans Top Stories

Seven Ways Commercial Property Owners Can Save on Defeasance Costs

by Christina Cannon April 12, 2016

Commercial real estate owners are increasingly confronting defeasance clauses in conduit or CMBS loans. These clauses require strict prepayment penalties in order to refinance or sell a property prior to maturity. In commercial real estate, defeasance is the process of releasing a commercial property from the lien of a mortgage and replacing it with a portfolio of government securities that are placed in a collateral account and pledged to the lender. This structure allows the borrower to sell or refinance the collateral property prior to loan maturity. Unlike a prepayment on the loan, however, the defeasance structure keeps the loan payment stream in place for the lender. While many of the parameters in a CMBS loan agreement are difficult to negotiate, well-versed property owners can negotiate a few specific clauses to minimize future costs should they decide to defease their loans. What follows are seven ways to save money later with proper planning at the beginning of the loan process. Negotiate the Length of the Open Window — The loan’s open window is the timeframe in which you can prepay your loan without penalty or interest. Generally, CMBS loans allow open windows of two to three months. However, there are …

April 12, 2016

Features Multifamily Top Stories

Alden Torch Financial Claims No. 1 Spot in NMHC’s Ranking of 50 Largest U.S. Apartment Owners

by Jeff Shaw April 6, 2016

WASHINGTON, D.C. — Alden Torch Financial, which spun off from Hunt Cos. last year in a management buyout deal, has burst onto the multifamily scene to become the largest multifamily housing owner in the United States. As of Jan. 1, 2016, Alden Torch owned 191,759 multifamily units, topping the next largest owner by more than 57,000 units, according to the National Multifamily Housing Council (NMHC). The Washington, D.C-based organization this week released the 2016 edition of the NMHC 50, which ranks the top owners, managers, developers and contractors in the U.S. multifamily sector. The rankings are based on the number of units owned and managed at the start of 2016, or units of new construction started in 2015 for developers and contractors. “The apartment industry continued its bull run in 2015, as demand for both apartment homes and apartment properties intensified,” says Mark Obrinsky, NMHC’s senior vice president of research and chief economist. “Big transactions were more common than usual, causing some noteworthy changes in the NMHC 50 rankings.” Hunt Cos. was the top multifamily owner for two years running before spinning off its multifamily portfolio, so it’s no surprise that Alden Torch leads owners despite being a brand-new company. …

April 6, 2016

CBRE 2016 Global Real Estate Survey Results

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U.S. Remains Prime Target for Global Real Estate Investors, CBRE Survey Finds

by Jeff Shaw April 5, 2016

Global real estate investors plan to make $1.16 trillion in gross acquisitions in 2016, according to a newly released survey from CBRE. That’s up 3 percent from last year’s survey conducted by the giant Los Angeles-based real estate services provider. The United States is still the primary target for investors, who collectively plan to spend 48 percent of their dollars in this country. The next most popular target for investors is Western Europe. More specifically, investors plan to spend 28 percent of their capital in Western Europe. Additionally, CBRE reports investor interest in Central and Eastern Europe grew compared with last year’s survey as a result of the faster pace of economic recovery in that region. “The majority of investors (82 percent) indicate that their buying activity will increase or remain the same compared to 2015,” according to the CBRE Global Investor Intentions Survey analysis. “While these results are down slightly from the last two years — 86 percent in 2015 and 93 percent in 2014 — this is not indicative of widespread concern about the short- or medium-term performance of real estate as an asset class. More likely, it reflects some concerns about pricing, the direction of U.S. interest …

April 5, 2016

Features Top Stories

Building-Data Tools Continue to Fuel Energy Efficiency

by Katie Sloan March 31, 2016

Major corporations focus on more than the traditional bottom line. Today’s companies are measured by their “triple bottom line” — which measures social and ecological performance along with financial performance. As energy efficiency is an important factor in both reducing a company’s operating costs and its environmental footprint, the market is seeing a steady increase in utilization of building-data tools that help owners and managers. Why are these tools necessary? In an environment where building owners and managers are inundated with data through various sources and in various forms, understanding what the data actually means can be a daunting task. If incorrectly interpreted, data can potentially lead to fruitless building renovations. To help the market accelerate energy-efficiency initiatives, the U.S. Department of Energy (DOE) has worked on a series of analysis tools that help address various market barriers. These tools can be used to collect, manage and analyze information about building performance, as well as guide the implementation of energy-efficiency programs and policies and lead users to a better understanding of energy-efficiency applications. An integral part of this system is the Building Energy Asset Score tool, which assesses the physical and structural efficiency of a building to assist building owners …

March 31, 2016

Features Multifamily Student Housing Top Stories

2015 Was Record-Setting Year for Student Housing, Says FourPoint

by Katie Sloan March 29, 2016

AUSTIN, TEXAS — With approximately $4.8 billion in total sales volume and 133 individual transactions, 2015 has become the highest sales volume year in the history of the student housing sector, according to a year-end report by Austin-based brokerage FourPoint Student Housing Investments. The sales volume seen in 2015 surpassed the previous sales volume record — set in 2014 — by over $1 billion. Last year also saw a spike in pricing compared to 2014, with price per unit, per bed and per-square-foot all seeing a surge throughout the year. Much of this increase can be attributed to location. A large percentage of the product being delivered is located in core, urban areas with high rents and high development costs in order to maintain walkability to universities. The convergence of low U.S. Treasury rates and increased desire for student housing resulted in some of the most expensive trades and lowest capitalization rates ever recorded, according to the report. CMBS lenders continue to play a significant role in the overall capital markets space as well, as many of the CMBS-financed assets reach loan maturity. Congruently, many owners will put value-add properties up for sale, seeking to divest in a seller’s market. …

March 29, 2016

Features Georgia Hospitality Southeast Top Stories

Hospitality Experts Offer Five Tips for Running a Successful Full-Service Hotel

by Christina Cannon March 24, 2016

ATLANTA — When it comes to successfully operating a full-service hotel there is no silver bullet for achieving success, but there are some smart steps owners and operators should take, say industry experts who spoke at the 28th annual Hunter Hotel Conference. The three-day event at the Marriott Marquis drew 1,300 attendees, up 8 percent from a year ago, according to conference organizers. In a panel titled “The Evolution of Full-Service Hotels,” professionals from Horwath HTL, GF Management, Davidson Hotels and Resorts, Legacy Ventures and Hyatt Hotel Corp. emphasized time and again that full-service hotels are in no way dying. They are simply evolving, and owners and operators must also evolve if they have hopes of being successful. “It’s still a street corner business,” said Thom Geshay, senior vice president of business development for Davidson Hotels and Resorts. “You have to look at the market you’re in, you have to define and profile your customer and give them what they need.” 1. Get Creative in Controlling Costs — Full-service hotels have a slew of amenities, and each amenity presents a new place to create revenues. “Our job is to find something that is broken or not maximized in some way …

March 24, 2016

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Coordination Between Hotel Renovation Team Members Is Key to Achieving ‘Wow’ Factor

by Haisten Willis March 22, 2016

ATLANTA — There are many moving parts when refreshing or renovating a hotel property, and the key is engaging everyone involved early and often. This was the message delivered on St. Patrick’s Day, March 17, by a panel of hospitality experts during the 28th annual Hunter Hotel Conference held at the Atlanta Marriott Marquis. Titled “Design to Inspire: Creating the Unexpected,” the breakout session featured a four-member panel that included Libby Patrick, president of Atlanta-based interior design firm Sims Patrick Studio; Bethany Warner, director of design management for Starwood Hotels & Resorts Worldwide; Sam Cicero Jr., president of Plainfield, Ill.-based Cicero’s Development Corp., a general contractor specializing in commercial renovation; and Alan Benjamin, president of Boulder, Colo.-based Benjamin West, a furniture, fixtures and equipment (FF&E) purchasing firm. Johnathan Nehmer, chairman and founder of Rockville, Md.-based architecture firm Jonathan Nehmer + Associates, served as moderator. The session was the first design-focused panel in the conference’s history. “How do we create the unexpected in design?” asked Nehmer. “How do we put that ‘wow’ factor out there and what role does design play in the hospitality experience? What we’re going to talk about today is how designers and contractors and purchasing agents do that.” …

March 22, 2016

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Chicago Mortgage Banker NorthPoint Capital Leverages Strengths to Enhance Market Penetration

by Christina Cannon March 21, 2016

When CEO Keith Volgman made the decision a year ago to expand his loan origination business, NorthPoint Capital, the Chicago-based mortgage banking operation began the search for the ideal candidate to spearhead that effort. Volgman’s objective was to leverage NorthPoint Capital’s highly competitive, long-term correspondent lending relationships to benefit a larger number of Midwest property owners. Charles Krawitz, who has more than 25 years of experience in commercial real estate finance, turned out to be the perfect fit. After all, Krawitz had a proven track record of boosting deal volume based on jobs he previously held at KeyBank, LaSalle Bank and elsewhere. Last May, Krawitz officially became COO of a new entity, NorthPoint Capital Funding. Operating from the company’s office in downtown Chicago, Krawitz oversees the expansion and training of the loan origination staff. His charge is to grow the scope and scale of the firm’s lending relationships across the commercial and multifamily landscape. While there is no shortage of lenders chasing product in today’s market, money doesn’t flow evenly, observes Krawitz. “It doesn’t necessarily flow into neighborhood assets the way it flows into the institutional space. It doesn’t flow into the rural markets the way it flows into the …

March 21, 2016

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