Industry News | Wk of August 20
HOT & RELEVANT TOPICS
New LA Multifamily Apartments Implement Tetris-Style Parking System
In the never-ending quest to save and make more efficient use of space, two Los Angeles apartment communities might be setting the curve. Markwood Enterprises is installing a Tetris-style parking system at the communities, which recently broke ground. The parking mechanism consists of a subterranean, semi-automated puzzle shift system, which appears as a stacked four-by-two grid. When a vehicle is parked, the system shifts, slides or lifts the vehicle into place. Accessing the vehicle takes about 30 seconds. Read the full Top 10 by Forbes Real Estate Council. Read Joseph Pimental’s article in Bisnow Los Angeles.
Airbnb to Launch Up to 14 More Home-Sharing Buildings By 2020
Airbnb has at best received a lukewarm reception from the apartment industry. But the home-share service and its partners have an answer for those prohibiting the service – they’ll simply buy the building. The latest project is in Nashville, Tenn., where Airbnb will take over a 328-unit apartment community and repurpose it for a mix of short-term visitors and long-term residents. Airbnb partner Niido recently purchased the building, currently branded Olmsted, and is encouraging residents to sublet their homes to Airbnb travelers. Read Olivia Zaleski’s article in Bloomberg.
Balancing Online and In-Person Leasing
The apartment industry is working diligently to keep pace as the leasing process becomes increasingly digital and mobile. But that doesn’t mean the industry should forget about in-person leasing, according to JVM’s Kortney Balas. The vice president of process and technology recommends striking a balance and notes that leasing associates will have to become for multifaceted. Some dazzle in person and on the phone but not so much through text and digital channels, while others are the opposite. Possessing both skills is becoming a must. She also explains how tech can sometimes produce too many leads. Read Balas’ Q & A in units magazine.
IN THE NEWS
Freddie Mac Unveils New Resource to Preserve Affordability
Freddie Mac Multifamily’s new Mezzanine Loan Program offers favorable pricing and additional debt capital for apartment owners. That’s in exchange for owners voluntarily maintaining affordable rents to low-income and moderate-income residents on 80 percent of units through the 10-year loan term. Unveiled on Aug. 7, the program is innovative and unlike anything else in the multifamily sector. The financing essential works as a subordinate loan to fill the gap between equity and the first-lien mortgage loan amount. Rents will be monitored to ensure owners are complying. Read Christine Serlin’s article in Multifamily Executive.
Senior Living Apartments: The Next Big Thing
As baby boomers continue to cash out on their homes for the convenience of apartment living, many are predicting that senior-living apartments are the next big thing in the industry. As such, design plans are starting to focus on senior living, incorporating items such as fully amenitized swimming pools and clubhouses, and anything else that speaks to resort-style living. Current senior living communities are characterized by uninspiring neutral tones, and the industry is making an effort to institute a rejuvenated approach to help allure this increasingly relevant demographic. Read Kelsi Maree Borland’s article on GlobeSt.com.
Multifamily Starts Mixed in Top 10 Metros in H1 2018
Half of the top 10 metros for commercial and multifamily construction showed increased activity during the first six months of 2018 compared to the same period last year. That means the other half did not. New York continued to set the pace with 16,144 new starts and experienced a 44 percent increase over last year. Boston, the fourth-ranked market, achieved the biggest year-over-year increase at 52 percent. No. 10 Atlanta, meanwhile, had a 43 percent decline in new starts. Construction was relatively stable at a national level, as the $101.4 billion in costs were 1 percent less than the first half of last year and 2 percent above the first half of 2016. Read Symone Garvett’s article in Multifamily Executive.