District of Columbia

Brickhouse Walker Dunlop Multifamily Washington D.C.

Spotlight on D.C.: Apartment Assets Resist Economic Turbulence

by Sarah Daniels January 28, 2021

The Washington, D.C. metropolitan area has been a perennial favorite for multifamily capital, particularly pension funds, life companies, family offices and other institutional investors and is often regarded as “recession-proof.” However, as we all know, 2020 was a year like no other. What impacts have COVID-19 and recent economic turmoil had on this market’s luster, and what do the prospects look like for investors, owners and operators in the long term? An Economy Buffered by Government and Technology The D.C. Metro’s response to the crisis has been one of the most robust, with local the economy currently 90 percent + open for business and no signs of a dip back into lockdown. From the initial shutdowns in March 2020 to the continued uncertainty of today, cities with heavy representation in retail, tourism and service sectors have experienced significant economic repercussions from COVID-19. In Washington, D.C., by contrast, having the federal government as the city’s largest employer has served as a major buffer. D.C. experienced a particularly acute government-mandated economic shutdown from March to May. While payroll performance in the District of Columbia’s leisure and hospitality sector declined nearly 60 percent from May 2019 to May 2020, jobs in this sector …

January 28, 2021

District of Columbia Southeast

Another 900,000 Americans File for First-Time Unemployment Assistance

by Alex Tostado January 21, 2021

WASHINGTON, D.C. — Another 900,000 Americans have filed first-time unemployment insurance claims for the week ending Jan. 16, the U.S. Department of Labor reported Thursday. The most recent figure is a decrease of 39,000 claims from the previous week’s revised level of 926,000, but still remains higher than pre-pandemic levels. Initial weekly claims hovered around 200,000 in January and February of last year. The four-week moving average increased by 23,500 claims to 848,000 for the week ending Jan. 16. Continuing claims — for which data lags a week — totaled just under 5.1 million for the week ending Jan. 9. The number is a 127,000-claim decrease from the week ending Jan. 2.

January 21, 2021

District of Columbia Retail Southeast

NRF: Holiday Sales Jumped 8.3 Percent over Previous Year

by Alex Tostado January 15, 2021

WASHINGTON, D.C. — Retail sales during the 2020 holiday season — the period from Nov. 1 to Dec. 31 — grew 8.3 percent year-over-year and beat expectations, according to the National Retail Federation (NRF). The association had predicted holiday shopping sales to grow between 3.6 and 5.2 percent year-over-year. “Despite unprecedented challenges, consumers and retailers demonstrated incredible resilience this holiday season,” says NRF president and CEO Matthew Shay. “Faced with rising transmission of the virus, state restrictions on retailers and heightened political and economic uncertainty, consumers chose to spend on gifts that lifted the spirits of their families and friends and provided a sense of normalcy given the challenging year.” In a separate report released Friday, the U.S. Commerce Department reported that retail sales in December totaled $540.9 billion, a 0.7 percent decrease from November 2020’s revised level of $544.6 billion.

January 15, 2021

District of Columbia Southeast

Initial Weekly Unemployment Assistance Claims Jump to 965,000 as Coronavirus Cases Climb

by Alex Tostado January 14, 2021

WASHINGTON, D.C. — An additional 965,000 Americans filed for first-time unemployment assistance for the week ending Jan. 9, the U.S. Department of Labor reported Thursday. Economists surveyed by Dow Jones expected the total to reach 800,000, similar to the previous week’s revised total of 784,000. A main reason for the increase in claims is further government restrictions due to the spike in COVID-19 cases and deaths. According to Johns Hopkins University (JHU), there have been 384,794 deaths in the United States since the onset of the pandemic, with more than 4,400 recorded Tuesday alone. The four-week moving average increased by 18,250 claims to 834,250 for the week. Continuing claims, for which data is a week behind, totaled 5.3 million for the week ending Jan. 2, an increase of 199,000 claims over the previous week.

January 14, 2021

District of Columbia Multifamily Southeast

NMHC: 76.6 Percent of Renters Paid January Rents in First Week

by Alex Tostado January 11, 2021

WASHINGTON, D.C. — The National Multifamily Housing Council (NMHC) Rent Payment Tracker has found that 76.6 percent of residents made full or partial January rent payments as of Jan. 6. Washington, D.C.-based NMHC surveyed its network of 11.3 million professionally managed apartment units across the country. The most recent figure is a 120-basis point increase over Dec. 6, 2020, when 75.4 percent of households made partial or full payments. January 2021, however, showed a 170-basis point decrease — or 192,613 households — from January 2020. “While there is light at the end of the tunnel with the rollout of vaccines, the country and the multifamily industry continue to face steep challenges,” says Doug Bibby, president of NMHC. “The [U.S. Congress’] recently passed COVID relief package included $25 billion in desperately needed rental assistance, as well as expanded unemployment insurance. Now, it is critical that those funds reach those in need as quickly and efficiently as possible.” The NMHC Rent Payment Tracker is powered by Entrata, MRI Software, RealPage, ResMan and Yardi.

January 11, 2021

District of Columbia Southeast

U.S. Economy Loses 140,000 Jobs in December, First Decline in Seven Months

by Alex Tostado January 8, 2021

WASHINGTON, D.C. — The U.S. economy lost 140,000 jobs in December, marking the first overall decrease since May 2020, the Department of Labor Statistics (BLS) reported Friday. Economists surveyed by Dow Jones had expected the report to show a gain of 50,000 jobs, still a muted expectation compared to November’s gains. The unemployment rate remained unchanged from November at 6.7 percent. The BLS highlighted increased COVID-19 cases and the effort to contain the pandemic as a major reason for the job losses. As of Friday morning, there were a reported 21.6 million confirmed cases in the U.S., according to according to Johns Hopkins University (JHU). The leisure and hospitality sector took the biggest hit, losing 498,000 jobs for the month. A majority of the losses came in food services and drinking places (negative 372,000). Since February, employment in leisure and hospitality is down by 3.9 million jobs, or 23.2 percent. Employment in private education decreased by 63,000 in December. Employment in the industry is down by 450,000 since February. There were some sectors that showed positive growth. Employment in professional and business services increased by 161,000. Retail trade added 121,000 jobs, while the construction sector added 51,000. In December, the …

January 8, 2021

District of Columbia Southeast

Additional 787,000 Americans File for First-Time Unemployment Assistance

by Alex Tostado January 7, 2021

WASHINGTON, D.C. — An additional 787,000 Americans have filed for first-time unemployment assistance for the week ending Jan. 2. Economists surveyed by Dow Jones expected the total number of claims to reach 815,000. The most recent figure was a slight decrease from the previous week’s revised number of 790,000, but still about four times higher than the week ending Jan. 4, 2020, when claims totaled approximately 200,000. The four-week moving average decreased by 18,750 claims to 818,750. The continuing claims, data for which trails a week, fell by 126,000 to just under 5.1 million for the week ending Dec. 26, 2020.

January 7, 2021

Affordable Housing Development District of Columbia Loans Multifamily Southeast

DCHFA Provides $25.4M Construction Financing for Affordable Housing Community in D.C.

by Alex Tostado January 7, 2021

WASHINGTON, D.C. — The District of Columbia Housing Finance Agency (DCHFA) has provided $17.7 million in tax-exempt bond financing and $7.7 million in 4 percent Low-Income Housing Tax Credits (LIHTC) for the preservation of Ritch Homes Apartments in Washington, D.C. Residents at the property exercised their right under the Tenant Opportunity to Purchase Act (TOPA) to obtain the property. Affordable housing developers Standard Communities and Housing on Merit will renovate the property’s 42 units and add four units to the building’s lower level. The co-developers expect the renovation project to cost $30.5 million. Of the existing units, 37 will be reserved for those earning 60 percent of the area median income (AMI) and five will be reserved for those earning 30 percent of AMI. The four new units will be for residents earning 80 percent of AMI. Renovations will include updated kitchens and bathrooms, as well as new flooring and appliances. Communal amenities will include a fitness center, business center, new flooring, new lighting and a new key fob entry system. Ritch Homes Apartments was originally built in 1920. It is situated at 1420 R St., in D.C.’s Ward 2 neighborhood and one mile north of downtown D.C.

January 7, 2021

Development District of Columbia Mixed-Use Southeast

Bank OZK Provides $174M Construction Loan for Mixed-Use Development of Former Fannie Mae Headquarters in D.C.

by Alex Tostado January 4, 2021

WASHINGTON, D.C. — Bank OZK has provided $174 million in construction financing for Upton Place on Wisconsin, a planned mixed-use development in Washington, D.C., that will feature 689 multifamily units and 100,000 square feet of retail space. Eastdil Secured arranged the loan. The borrowers and developers, Apartment Investment Management Co. (Aimco) and The Donohoe Cos. Inc., expect to break ground in early 2021 and deliver the project in 2024. Donohoe originally developed the site, situated at 4000 Wisconsin Ave., in 1987 as the headquarters for Fannie Mae. The site has sat vacant since Fannie Mae consolidated its headquarters in downtown D.C. in 2014. Upton Place on Wisconsin will comprise a six- and an eight-story building. The multifamily portion is expected to include 65 affordable housing units. SK+I Architecture designed Upton Place to include most of the existing 825 below-grade parking spaces. Communal amenities will include a rooftop pool, three internal courtyards, barbecue areas, fitness center and a yoga studio.

January 4, 2021

District of Columbia Southeast

Total Number of Weekly Unemployment Claims Dips to 787,000 in Last Week of December

by Alex Tostado January 4, 2021

WASHINGTON, D.C. — A total of 787,000 Americans filed for first-time unemployment insurance assistance for the week ending Dec. 26, the U.S. Department of Labor reported Thursday, Dec. 31. The most recent figure marks a decrease of 19,000 claims from the previous week, though claims remain historically high compared to pre-pandemic numbers when claims hovered around 200,000 per week. Economists surveyed by Dow Jones expected the tally to rise to 828,000. The four-week moving average increased by 17,750 claims to 836,750 from the previous week. Continuing claims, for which data lags a week, fell by 103,000 claims to 5.2 million for the week ending Dec. 19.

January 4, 2021

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