BETTER BUILDINGS CHALLENGE APARTMENT BUILDING EDITION

July 14, 2014 on 1:28 am | In Government, Green, Lenders + Vendors, Of Local Importance, Problem Solving, Trends, Uncategorized, Utilities, WOW | 2 Comments

by Jodi Summers

Didja know > about a quarter of U.S. households live in multifamily housing units. This group of apartment dwellers spends about $40 billion on energy costs each year. The Better Buildings Challenge > Multifamily Edition < estimates that making multiunit housing units 20% more energy efficient would save more than $7 billion per year and cut greenhouse gas emissions by 430 million tons.

As part of the Better Buildings Challenge, DOE and the HUD are partnering with leading private and affordable buildings owners and public housing agencies to cut energy waste and help families save money. Better Building Challenge multifamily Partners are leaders in market rate multifamily housing, public housing authorities, and affordable housing.

Challenge renovation areas include:

Save Water

2013 saw record little rainfall in Southern California. Water is precious and expensive. Fixtures like the new low-flow toilets work better and save dramatically more water than models that just a few years old. According to the Stewards of Affordable Housing for the Future (SAHF) the savings may pay for the cost of the fixtures in a year to 18 months.

Expert Installation

Some companies can now install water-saving technology for you, with little or no up-front cost. Companies like eConserve and Minol do such work in exchange for taking a cut on future savings in the future.

Designate an Energy Manager

A leaky sprinkler system or a mistake by a utility company can go unnoticed until someone finds the problem. Landlords, do yourselves a favor and designate person on staff to read the property’s energy bills. Software tools such as EnergyScoreCards, Portfolio Manager, or WegoWise track and compare utility usage.

Utility Rebate Programs

Periodically, utility companies offer rebates for things like installing energy-saving lighting. The T12 fluorescent lighting rebates are gone, but there’s always going to be another incentive. Call the number on your bill and ask how they can save you money.

Energy Star Appliances

Many appliances with the federal Energy Star label for energy efficiency are priced in line with conventional products. Like flat screen TVs, a product whose up-front cost was too pricey last year, might be affordable this year.

Reconsider Solar Panels

If you’ve decided in the past not to install solar panels because the panels were relatively expensive, revisit the numbers. The cost of panels has come down, and more utilities are allowing buildings to use the solar energy they produce themselves during the day to offset the electricity used by residents at night. Depending upon roof space, some new companies will offer “solar-power purchase agreements.” At little or no cost, the companies will install solar equipment at a multifamily property. In exchange, the property agrees to buy a certain amount of the power produced by the solar panels.

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http://www.multifamilyexecutive.com/energy-efficiency/owners-operators-group-welcomes-the-better-buildings-challenge_o.aspx?dfpzone=home&utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_010214&day=2014-01-02

http://www.sahfnet.org/

http://www.socalgreenrealestateblog.com/?p=1866

http://energy.gov/articles/obama-administration-expands-better-buildings-challenge-multifamily-housing-launches-new

http://www.socalgreenrealestateblog.com/?p=3120

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http://www.socalmultiunitrealestateblog.com/?p=2637

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SOCAL MULTIFAMILY REAL ESTATE SNAPSHOT JUNE 2014 – DOWNTOWN RENTALS ROCK

May 28, 2014 on 10:47 pm | In Charts + Statistics, Experts Say, Fascinating Information, Green, Investment Opportunities, Market Snapshot, New Developments, Of Local Importance, Rents, Trends, Uncategorized, WOW | 5 Comments

by Jodi Summers

Young people are interested in a different kind of lifestyle than earlier generations, thus

Americans are experiencing an urban renaissance of unanticipated proportions. Realizing that now is the time for experience, college graduates are moving to cities. Now, multifamily properties account for 40% of all new construction. It’s time for you to get in the game.

Recently released census data shows that in 2014 metropolitan areas across the country grew at a faster rate than the rest of the country, with cities like Austin, Texas and Seattle, Washington growing quickly.

In Los Angeles, according to Loopnet, multifamily property sales prices have risen +1.6% in the first quarter to a median price of $177,256.80 per unit. This is a +15.8% rise from 1Q 2013.

“There’s been a surge in urban apartment building,” says chief economist for the National Association of Homebuilders, David Crowe. “The 25- to 34-year-old age group is focused on living near their peers. They want be socially engaged and live near work. They want to reduce their automobile use. All of those things aim at high-density, urban-type living.”

Nielsen Research’s latest whitepaper on Gen Y and Millennials shares these key findings:

Those aged 18 to 27 have a median income of $24,973; meanwhile, older Millennials (28 to 36) make closer to $48,000.

  • Currently, 36% of Millennials rely on parents for financial support.
  • Millennials are the most racially/ethnically diverse generation: 19% are Hispanic, 14% are African American, and 5% are Asian.
  • 62% of Millennials prefer to live in mixed-use communities.
  • Green is still in. A whopping 60% of Millennials are willing to pay more for a product if they think it’s good for the environment.

And more curiously…

  • This generation makes up about 14.7% of Americans with assets of more than $2 million.
  • 8% of Millennials own their own business.
  • Washington D.C. is home to some of the most wealthy Millennials (those earning more than $100,000 per year), followed by San Francisco.
  • Only 21% of Millennials are married.

“Unlike their parents, who calculated their worth in terms of square feet…this generation is more interested in the amenities of the city itself: great public spaces, walkability, diverse people and activities with which they can participate,” observes Ellen Dunham-Jones, a professor of architecture and urban design at Georgia Tech.

With student-loan debt hampering their opportunities for homeownership, this demographic will continue to hold sway on the apartment industry for years to come. There are currently more than 77 million Millennials across the nation, a number just about on par with Baby Boomers.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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http://www.multifamilyexecutive.com/demographics/understanding-gen-y-neilsen-study-takes-a-deep-demographic-dive_o.aspx?utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_051514&day=2014-05-15

http://www.socalmultiunitrealestateblog.com/?p=2683

http://time.com/72281/american-housing/

http://www.multifamilyexecutive.com/demographics/striking-a-unit-balance-for-both-baby-boomers-and-gen-y_o.aspx?dfpzone=home&utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_051514&day=2014-05-15

http://www.socalgreenrealestateblog.com/?p=3395

http://www.loopnet.com/Los-Angeles_California_Market-Trends?Trends=SalePricesFS,TotalAvailableForSaleFS,NumberOfListingsFS,TotalNumOfUnitsFS,TotalSFAvailableFS,AskingRentsFL,NumberOfListingsFL,TotalSFAvailableFL&PropertyTypes=Multifamily

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SOCAL MULTIFAMILY REAL ESTATE SNAPSHOT MAY 2014 ~ RENTS AS BIG AS A MORTGAGE

April 29, 2014 on 9:11 pm | In Buyers, Charts + Statistics, Economy, Fascinating Information, fUNNY...mONEY, Investment Opportunities, Market Snapshot, New Developments, Rents, Sellers, Trends, Uncategorized, WOW | 5 Comments

by Jodi Summers

See all those new units going up around town? They’ll soon be for rent. So, although Los Angeles apartment owners will continue to enjoy relatively tight vacancy in 2014, new construction will be applying pressure on operations in the western stretches of the county by the end of the year.

The new canyons of Marina del Rey are something to ponder as research firms like Marcus & Millichap expect top-tier rental demand to be lower than the pace of construction. New apartment development around Los Angeles will see 6,000 rentals finished – a 0.6% stock gain for the 2nd year in a row.

A plethora of high priced units are expected to lift the overall vacancy rate around town and push management to offer concessions to attract elite renters. It is anticipated that vacancy rates will rise 4.3% this year. By year-end 2014, effective rents will reach $1,726 per month, an annual rise of 1.2%.

Expect job growth in the county to accelerate bringing overall payrolls within reach of the pre-recession level for the first time in 7 years…so tenants can hypothetically afford those lofty rents…or not so much. ..

Rents in L.A. are close to a mortgage payment. Investment savvy Millennials who don’t have a half-million to spend living at the beach are going east to Culver City, Mar Vista and the historic Village Green – owning their homes, building their financial portfolios. Los Angeles zip codes like 90034, 90066, 90025, 90230, 90016 and 90046 are well-located equity-building locations.

For investors, average cap rates are near historical lows, which means we could see more inventory; but keep in mind, the current West Side buying frenzy is attributable to unproductive alternative investment vehicles rather than property fundamentals. An abundance of cash, fear of a stock market correction, and low interest rates favor the acquisition of low-yielding apartments. When interest rates move higher, the experts expect investors to rethink the current strategy and explore alternative options.

Additionally, first-time investors are drooling to get into the Silicon Beach multifamily market, and are willing to accept early returns below 5% in long-term hold plays.

Stiff competition is driving desirable buildings are going into multiple offer scenarios, driving down cap rates, leaving many investors reliant on Southern California real estate renowned rapid appreciation.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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http://www.marcusmillichap.com/research/researchreports/reports/2014/01/06/los-angeles-apartment-research-report

http://www.socalmultiunitrealestateblog.com/?p=2678

MORE RESIDENCES FOR DOWNTOWN L.A. THANKS TO ADAPTIVE REUSE

April 15, 2014 on 1:58 pm | In Curious, Fascinating Information, Green, Historic Properties, Money Saving Opportunities, New Developments, Of Local Importance, Problem Solving, Recycling, Uncategorized, WOW | 3 Comments

Edited by Jodi Summers

Bravo to the City of Los Angeles. Through innovative public policy and creative private development, L.A.is demonstrating how older buildings can be repurposed and repositioned for the new economy while reducing carbon emissions.

Believe it or not, Downtown Los Angeles contains one of the nation’s finest collections of early 20th century architecture. Most of these buildings sat vacant for decades, until a carefully targeted Adaptive Use Ordinance (ARO) removed regulatory barriers, provided incentives, and helped make it possible to repurpose more than 60 historic buildings over the past 14 years as new apartments, lofts, and hotels.

But many more buildings remain empty or underused in the downtown area and nearby commercial districts.

 

A recent report from the Urban Land Institute and the National Trust for Historic Preservation’s Green Lab concludes that more than 10 million square feet of space in the city’s urban core is currently vacant. The report, Learning from Los Angeles, was presented to Mayor Eric Garcetti this morning, at an event organized by the ULI Los Angeles District Council. It describes strategies that build on the success of the ARO to unlock the economic and community development potential of underused older buildings. The report documents demolition, building, and vacancy trends throughout the city and recommends strategies for removing regulatory barriers, streamlining approvals, and providing incentives to make building reuse easier to accomplish.

Conversations organized by the Preservation Green and ULI Los Angeles identified key barriers to building reuse and recommend solutions to overcome these obstacles. The Los Angeles Conservancy, a key partner in this effort, served on the project Advisory Committee along with practitioners in real estate development, planning, design, construction, community revitalization, and local government.

Learning from Los Angeles is the first in a new series of research and policy reports being developed by the Preservation Green Lab through the Partnership for Building Reuse, a joint effort of the National Trust and ULI. Launched in Los Angeles in 2012, the Partnership for Building Reuse is designed to foster market-driven building reuse in major U.S. cities through dialogues with community stakeholders about building reuse challenges and opportunities.

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http://blog.preservationleadershipforum.org/2013/10/10/learning-from-los-angeles/#comments

http://www.socalofficerealestateblog.com/?p=2458

http://www.socalgreenrealestateblog.com/?p=3018

http://www.socalmultiunitrealestateblog.com/?p=2592

HAPPY HOLIDAYS A TODOS

December 23, 2013 on 9:26 pm | In Curious, Rents, Uncategorized, WOW | 1 Comment

SOCAL MULTIUNIT REAL ESTATE SNAPHOT ~ NOVEMBER 2013 ~ RENTERS ARE STAYING HOME

October 31, 2013 on 4:32 pm | In Charts + Statistics, Curious, Experts Say, Fascinating Information, Investment Opportunities, Market Snapshot, Rents, Trends, Uncategorized, WOW | 6 Comments

by Jodi Summers

Based upon the demographics, we should be in the midst of a huge housing boom. While rental markets are strong in many areas, on a percentage basis, young people are not flowing into the marketplace as previous generations.

“It is true that as the economy recovers, faster household formation should create demand to occupy the new units,” observes Luis Mejia, CoStar Director of U.S. Research, Multifamily. “But relatively easy apartment financing and prolonged developer optimism have created a supply wave that could adversely affect rents and vacancies — even in places where today’s economics and demographics are apparently favorable.”

Certainly that’s what’s created the stability in the Westside of Los Angeles apartment market. In the past year, the median price per unit jumped 10% to $236,100 per unit. While unit prices are up, average cap rates are down slightly, but still hovering in the high-4% range. Rising interest rates will have a pronounced affect on the Westside Cities region due to razor thin margins. Already the number of deals being done in Santa Monica and Beverly Hills has slowed significantly.

Westside sale and rental rates are also seeing an impact due to the high unemployment rates for those under 30. Experts say there are “8.2 million young adults ages 20 to 24 who can’t find full-time employment, including 4.1 million who are disconnected from both work and school and another 3.6 million who are working part time when they want to work full time.” For college graduates in this age group, the unemployment rate is double what it is for those in their 30s and 40s.

Today’s high rental rates are scaring those who are new to the market. As opposed to rising to the challenge, they are doing nothing.

Studies show there are “4 million young adults who are not engaged in any sort of activity to develop their human capital; they are not gaining education in school, nor are they learning skills or getting experience through work.”

Millennials are moving back in with mom and dad in staggering numbers. In the past, when young people first went to work, they would buy a car and start saving for a down payment for a home. For the 8.2 million who can’t find full-time employment, these choices are not an option. As a result, many of our young people will be stuck either at home or in a rental since they can’t afford a down payment on a house. If they have children it will be even more difficult to save the money for a down payment. This means the demand for rental property will be high and that fewer millennials will become property owners in their 20s or early 30s.

For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

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http://www.inman.com/2013/10/24/cant-find-work-or-save-for-a-down-payment-are-millennials-becoming-real-estates-lost-generation/#sthash.eNuAcUZU.dpuf

http://www.costar.com/News/Article/Renter-Demand-Holding-Fast-So-Far-As-Apartment-Supply-Wave-Begins-to-Break/151551

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