John B. McLaren

Office to residential conversion is a capital intense investment at a time when existing multifamily properties face challenges in maintaining their own values. There's no easy answer. The real estate industry should give serious consideration to the benefits of a president who understands commercial real estate.

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According to a new report from RealPage Market Analytics, markets for apartments in urban cores are catching up with their suburban competitors in terms of both occupancy and rent growth. Read on. #housing #multifamily

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The Great Affordable Developer Exodus?!? (Part 5) Over the last few days, we have looked at how affordable developers are being pushed into the red. Starting with reduced/deferred fees at the time of award, through operations shortfalls, ending with little or sometimes negative equity at the end.  A process which is forcing many to exit stage left. However, even as we are seeing this possible exodus, there aren’t a ton of new viable candidates eagerly waiting in the wings to take up the mantle. Regardless of the motivation of the new developer, the process is expensive, bureaucratic and slow.   Due to length, I will have to split this up into a couple of posts. I've attached a link to a more comprehensive overview from HUD, which is interesting and frightening. Below is the lifecycle of an affordable deal to get to the point of receiving that developer fee. 1)    Look for land in a QCT/DDA (Qualified Census Tract) that meets the requirements of the QAP (Qualified Allocation Plan).  The QCT helps put more money in the deal (see my prior posts), the QAP is how the state dictates what projects they want and will award. Both the QCT and the QAP can change yearly. 2)    Check the zoning of the parcel, if not correct start the 12–36-month process to change it. Hopefully you can.   Hire an attorney to help make your case with the local zoning board. ($100k plus) 3)    Hire an engineer and an architect. Complete a Phase 1 environmental survey (hopefully it’s clean.) Complete geotechnical and environmental survey. (Around $50K) 4)    If all of the above checks out. Try and get that parcel bought or under contract. Knowing you are competing with every other LIHTC developer who needs the same unicorn piece of land. Normally with non-refundable funds of some sort. ($100k plus) 5)    Once parcel is secured (either purchase, lease or under long term contract) hire an architect and a GC. Develop a site development plan and a proposed budget. ($100k plus) 6)    Providing you can complete all of the above before the application deadline. Submit everything to the state housing authority. Pay more fees and complete a multi-page application. Include all your financials (you need at least a $5MM net worth or a partner). You must have built a LIHTC project in that state within the last few years or have a partner. Partners take a part of the developer fee. Tomorrow, I'll finish this lifecycle evaluation, along with its costs. Notwithstanding the difficulty, I hope those new developers either have deep pockets, or rich sponsors. https://lnkd.in/gZCtQyW2.

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Empirical evidence shows that rent control legislation erodes both the quantity and quality of rental housing, and encourages landlords to convert rental units into condos, cut back on maintenance, and become more selective about tenants to reduce rent default and vacancy risks.

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Check out the latest video released by The Appraisal Institute, highlighting the important role of commercial appraisers in supporting communities. CBRE's Adam Bogorad, MAI, discusses how accurate property valuations help facilitate investment and growth. Watch the video here: https://lnkd.in/g2FYVxpd #AppraisalInstitute #CommunityDevelopment #CBREVAS #Valuation

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How are investors and developers navigating today's touch-and-go #multifamily market? Industry leaders weighed in at our second annual State of Multifamily Forum. 🔗 https://lnkd.in/eEWbnvDg #CommercialRealEstate #COMultifamilyForum

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🚨HUD is Revamping the Multifamily Asset Management Handbook! For the first time since 1992, HUD is updating its guidance, with a focus on streamlining property management tools and enhancing renter conditions. This is your chance to shape the future of multifamily housing policy. Key Details: ▪️ First chapter, “Bifurcating Section 8 Contracts,” is open for comments until *November 18, 2024*. ▪️ Sign up for updates and submit feedback: [email protected] ▪️ Stay engaged as HUD rolls out additional chapters! Help drive meaningful change—your input matters!  #housingmatters #HUD #publichousingagencies #housing

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During next week's Bisnow webinar, discover the latest strategies for high-net-worth investors to maximize wealth through commercial real estate. The panel will feature JLL industry leaders Brian Smuckler, Alex Sharrin, and Drew Dornbusch, moderated by Bisnow's Catie Dixon. ⏳ It's not too late to register: https://co.jll/3NNndUC #PrivateCapital #RealEstateInvesting #JLLCapitalMarkets

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The retail landscape is continuously changing, particularly in 2024, with evolving trends in dining and shopping. https://lnkd.in/d3uDXEjv #CRE #CBCWorldWide #cbcrgv

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Our CEO Arunabh Dastidar recently shared his thoughts on the future of revenue management. In recent conversations within leaders in the multifamily industry, the focus on revenue growth has severely intensified. If owners and managers can leverage revenue management strategies to dynamically adjust rents based on market conditions and tenant demographics, they will maximize profitability while maintaining high occupancy rates. This is the not-so-secret “secret” to thriving in today’s competitive real estate market. Need to have, not nice to have. #multifamily #revenuemanagement #ai #proptech

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The Mortgage Bankers Association recently published their Quarterly Commercial/Multifamily Mortgage Bankers Originations Index (https://lnkd.in/g5gH-JCu). While origination volumes remain below historical averages in 2Q24, it shows a rebound compared to the prior quarter. CMBS stands at its highest level since 1Q22 and Life Co rose to levels seen in a year ago.

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DC's working-class earners are being pushed out; caught between unaffordable rents and income limits. CNHED CEO Stephen Glaude says, "Typically we direct subsidies and resources and assistance, to the very low income, but what we’re seeing in DC, because of our market pressures, is that we need assistance for lower middle-income people as well." What are your thoughts? How can we mitigate this? ----- https://lnkd.in/g-tr5-JT Huge thanks to The Washington Informer for not only covering our 25th Anniversary Gala but for also bringing greater awareness to this huge shift. Also quoted in the discussion are Christopher E. Donald, CEO of the DC Housing Finance Agency, and Tyrell M. Holcomb of Jubilee Housing.  

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Join us today (6/13) at noon (CT) as leaders of the National Multifamily Housing Council dive into the evolving narrative of rent control and the latest research findings, and offer fresh perspectives on how rent regulation impacts both housing providers and residents. Learn more and register: https://ow.ly/AGt750ShX38 Sharon Wilson Geno | Caitlin Sugrue Walter, PhD #rentcontrol #rentregulation

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