Month: December 2018

Residential Mortgage Originations Drop 21 Percent in Q3 2018

Dollar Volume of Refinance Originations Falls to 4.5-Year Low;
Purchase Originations Down 2 Percent, HELOC Originations Down 11 Percent;
Median Down Payment Percent Increases to Nearly 15-Year High

IRVINE, Calif. – Dec. 13, 2018 — ATTOM Data Solutions, curator of the nation’s premier property database, today released its Q3 2018 U.S. Residential Property Mortgage Origination Report, which shows that 681,455 refinance mortgages secured by residential property (1 to 4 units) were originated in the third quarter, down 15 percent from the previous quarter and down 21 percent from a year ago to the lowest level as far back as data is available — Q1 2000.

The refinance mortgages originated in Q3 2018 represented an estimated $175.1 billion in total dollar volume, down 14 percent from the previous quarter and down 21 percent from a year ago to the lowest level since Q1 2014 — a 4.5-year low.

“Rising mortgage rates continued to dampen demand for mortgages in the third quarter, particularly refinance mortgages,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “There were some notable exceptions to that trend, primarily in markets affected by the hurricanes in the third quarter of 2017.”

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

10 Step Guide to Marketing Lease-Ups

“Build it and they will come” isn’t the makings of a great lease-up marketing strategy. In today’s modern multifamily landscape, you need to have an online presence. Established communities benefit from better search rankings, reviews, real imagery and a social media presence. In this ten step guide, I’ll cover the ten important steps your community can take to develop an online presence, compete with established communities, and reach sustainability.

Step 1: Create a Brand

When creating a brand identity for a community, it is important to consider what your unique value proposition is and who will be the most attracted to it.

Start with a renter in mind.

Imagine what the experience will be like when a prospect tours your community, signs a lease, moves in, and lives in your community. Why will this person choose to live in your community instead of your competitors? Do they think about the style of your interiors, the new location they have access to, or the people they plan to invite to the rooftop lounge for drinks?

Put it into words.

Think of two or three words or phrases that encompass what life will be like in your community.

  • Luxurious & Tech Savvy
  • Active Lifestyle, Near Nature & Pet-Friendly
  • Eclectic, Expressive & Exciting
  • Family Friendly, Convenient & Safe

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

Dom Beveridge The Supply and Demand Sides of Short Term Rentals

Sometimes new technologies and strategies change the way that we do business. More frequently, though, things that have worked in one industry find their way into other sectors, leading to fresh innovation. In multifamily, it is often the hotel industry that supplies some of the most plausible new ways to sell, market and deliver the experiences that define our industry. In the weeks since OPTECH 2018, there has been much discussion about short-term rentals. An array of vendors has emerged across the value chain – from apps that make it easy to rent out your apartment to platforms that run entire apartment buildings as if they were hotels. Demand for short-term rentals is growing rapidly, and business models are changing as we see shifts in both the demand and supply sides of the business. A few years ago I wrote a piece for Multifamily Insiders on the rise of Apartments.com and the parallels I saw with the growth of the Online Travel Agents (OTAs) like Expedia and Priceline and their impact on the hotel industry. At the time, an unprecedented escalation in spending on apartment marketing was raising the profile of the sector (including buying ad spots in the Superbowl!). Multifamily Internet Listing Sites (ILSs) seemed to be taking greater control of the customer. As I argued, it reminded me of the dynamic in the lodging sector, where OTAs had developed a value proposition that competed with traditional hotel companies and their websites.

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

Opportunity Zones, Marijuana-Related Properties and Retail Assets Among Best CRE Bets for HNW Investors in 2019

Wealth management experts and CRE professionals discuss the types of properties HNW investors should pursue in the coming year.

As high-net-worth (HNW) investors zone in on commercial real estate opportunities for 2019, Opportunity Zones, multifamily, marijuana, retail and industrial are emerging as some of the key areas to watch.

Real estate investments made next year by HNW investors should be weighed against rising interest rates and the prolonged economic expansion, according to Doug Brien, co-founder and CEO of Oakland, Calif.-based Mynd Property Management, which specializes in multifamily assets.

“For deals to make sense, investors will need to make sure cap rates remain high enough to balance out rising interest rates,” Brien says. “In my opinion, a long-time horizon should be incorporated into any investor’s strategy if they’re acquiring properties at such a late stage in this rising interest rate environment.”

Ross Yustein, chairman of the real estate department at New York City law firm Kleinberg Kaplan Wolff & Cohen PC, echoes the cautious approach espoused by Brien.

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

Commercial Loan Originations Declined in the Third Quarter, But the Full-Year Activity Should Be on Par with 2017, MBA Predicts

Rising interest rates, concerns about cycle end contributed to a 7 percent year-over-year decline in commercial mortgage originations in the third quarter.

As commercial and multifamily originations appear likely to close out the year roughly on par with the record activity of 2017, capital markets experts are reading the tea leaves for 2019.

The Mortgage Bankers Association (MBA) reported a 7 percent year-over-year decline in commercial/multifamily lending activity in the third quarter, based on its quarterly survey results, but predicts commercial and multifamily mortgage originations to total $532 billion for 2018, similar to last year’s record volume of $530 billion.

For 2019, the MBA forecasts total commercial/multifamily originations of $541 billion, a 2 percent increase over 2018.

Capital should keep flowing next year, according to Jim Cope, head of production for capital markets at Walker & Dunlop, a commercial real estate services and finance firm. “As long as interest rates don’t get out of control, capital flows will continue to be strong in 2019,” Cope says. Bethesda, Md-based Walker & Dunlop was the nation’s 10th largest commercial real estate lender during the first half of 2018, according to data from Real Capital Analytics (RCA), a New York City-based research firm. “We are not hearing that anybody is pulling back in allocations for 2019,” Cope notes.

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

A Look at the Markets with the Largest Average Apartments

Cities in Florida, Texas and Arizona dominate the list.

Average apartments in the U.S. are shrinking, according to RentCafe analysis of Yardi Matrix data.

The average size of new apartments in the U.S. in 2018 is 941 sq. ft., 5 percent smaller than 10 years ago. Seattle has the tiniest apartments in the country, with an average size of 711 sq. ft., Manhattan and Chicago the second smallest rentals, 733 sq. ft., while Tallahassee, Fla., offers the most largest rentals at 1,038 sq. ft.

According to RentCafe:

The largest share of apartment dwellers, millennials prefer living in locations close to restaurants and entertainment rather than having a large kitchen or living room to cook or entertain at home. But the rising interest in smaller living spaces is equally motivated by price, as the need to save on rent sparks demand for smaller units. Unfortunately, renters are paying much more for less. The average rent in newly-built apartments in the U.S. has increased by 28 percent compared to 10 years ago, while their size has gotten 5 percent smaller.

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

Hotel Icon Ian Schrager Thinks Communal Living Is the Future

Co-living spaces are blurring the distinction between hotels and apartment buildings, according to hotelier Ian Schrager.

(Bloomberg)—The next big disruptor in hospitality, according to Ian Schrager, is co-living spaces.

“Communal living is blurring the distinction between residential and hotels,” the hotelier and Studio 54 co-founder argued during Bloomberg’s Year Ahead: Luxury conference in Manhattan on Thursday.

The mastermind behind the Public Hotel urged audiences to look at millennial buying statistics as evidence of this trend, which has seen growth in so-called co-living, where residents buy into furnished, semi-serviced apartments, either by the unit or by the bedroom. These are sort of communes for digital nomads with pop design, Casper mattresses, Nest thermostats, and other covetable accoutrements of the startup set. Critics have called them “dorms for adults,” while more evangelical residents praise them for the instant community they create.

“When I was growing up, I couldn’t wait to get a car!” Schrager said, comparing millennials’ lack of interest in cars to their evolving living habitats. “Now my daughters don’t want a car.” Relying on Uber and Lyft or car-sharing pilots from Porsche, BMW, and Mercedes was once unthinkable—now it’s de rigueur. “It’s just things are changed,” he said.

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

U.S. Foreclosure Activity Down From Year Ago in October But Up in 38 Percent of Local Markets

There were a total of 66,401 U.S. properties with foreclosure filings in October 2018, up 21 percent from an all-time low in the previous month, but still down 4 percent from a year ago, according to ATTOM Data Solutions.

Counter to the national trend, October 2018 foreclosure activity increased from a year ago in 15 states, including Florida (up 55 percent); Texas (up 28 percent); Georgia (up 50 percent); Michigan (up 24 percent); and Arizona (up 1 percent).

Also counter to the national trend, 84 of 219 metropolitan statistical areas analyzed in the report (38 percent) posted a year-over-year increase in foreclosure activity, including Miami, Florida (up 55 percent); Houston, Texas (up 198 percent); Tampa-St. Petersburg, Florida (up 67 percent); Atlanta, Georgia (up 36 percent); and Phoenix, Arizona (up 3 percent).

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

Resident Communications: It’s Personal

Sending messages to your buildings’ occupants is an important aspect of property management, but getting them to see the messages and read them is a challenge―especially in today’s high-tech world.

At first glance, communicating with residents in this day and age would seem to be an easy task. After all, businesses have never had more ways to reach customers: emails, text messages, apps, social media. The list seemingly goes on and on.

But one could make the argument that reaching residents has never been more challenging. Think about it: Our phones and desktops are forever dinging and buzzing to indicate a communication of one form or another has arrived.

With all this technology at hand, why is it becoming more difficult to actually reach people? Consumers are starting to tune out the dings. They are actively choosing to communicate in only the ways they want to. For personal business, they are using apps and messaging. For work, it’s still emails. And that is where the ineffective communication comes from. Are apartment operators personal or are we business?

THE DISCONNECTED EMAIL

Although it wasn’t all that long ago, isn’t it hard to imagine a time when email was the cutting-edge communication channel? Now, in a world of texting and apps, it seems like a bit of a dinosaur.
Personally, I know many people who might go days at a time without checking their personal emails. I’ve heard some property managers grumble that only 15 percent of the emails they send to residents are opened.

The statistics appear to back them up.

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Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.

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