Multifamily News & Notes, July 2008

Most are familiar with both ends of the Fannie/Freddie news spectrum these days but the negativity is still far outweighing the bright spots. Here is some perspective on lending activity in multifamily housing right now. Pretty solid YOY growth:

HALF MOON BAY, CA. -- Fannie Mae (FNM/NYSE) today announced that its DUS lenders delivered $18.2 billion of the company's total investment in multifamily rental housing, representing the strongest first-half ever for DUS lenders and an increase of 30 percent over mid-year 2007 production. Fannie Mae's investment in multifamily housing totaled $20 billion in the first half of 2008. Primary multifamily financing solutions include debt financing through lender partners and multifamily bond purchases (from the Fannie Mae Website).

Here is an excerpt from the WSJ. Last year I posted on this topic using some statistics provided by Red Capital. The "20.4 MM by 2016" referenced below is pretty staggering.

Campus Living, and Even a Theater - Specialized Developers Helping More Colleges To Meet Housing Needs
By DAWN WOTAPKA - July 23, 2008; Page C12As the population swells and the majority of high-school graduates seek degrees, enrollment is projected to climb to 20.4 million in 2016, up nearly 42% in 25 years. By 2020, Arizona State expects its student count to jump nearly 60% to 100,000 competing for just 22,500 beds on campus. "The market is huge," said Jim Arbury, senior vice president of government affairs for the National Multi Housing Council.

There are also strong growth opportunities for companies interested in expanding through acquisitions. Plenty of student housing remains in the hands of mom-and-pop operators; the top eight players in the industry own less than 5% of total off-campus demand.

"We have not begun to corner the market," said Paul O. Bower, chief executive of Memphis, Tenn.-based Education Realty, which owns and manages 41,500 beds in 70 properties.

Here is some anecdotal evidence that there is some strategic thinking getting behind the green movement. It seems obvious but all of us get caught up in launching a new product because we are in love with the idea and fail to solicit input from the end-user.

Builder taps focus groups for green condominiums
Washington Business Journal - by Vandana Sinha Staff Reporter
Taurus Development Group plans to enlist a different type of consulting group to help shape its next green condominium building: everyday people.
The D.C. developer is turning to a concept called “crowd sourcing,” which creates communities of interested people, in Facebook fashion, to get their opinions, from initial designs to final sales, and help determine how a multimillion-dollar project should be developed. Call it Focus Group 2.0.