Multifamily sector beating the odds

first_imgShare on FacebookShare on TwitterShare on LinkedinShare via Email Share via Shortlink Share via Shortlink TagsCommercial Real EstateMultifamily Marketcenter_img While hotels, retail and offices sink, the multifamily sector is sailing along.Rent collection has been largely steady despite high unemployment and early threats of rent strikes. Occupancy, too, has suffered less than expected except in dense areas and at the high end of the market, where tenants were more likely to relocate to a second home and new leases dwindled.Commercial properties have lost revenue to lockdowns, reduced travel and online shopping, but people are using their residences more than ever. That has benefited the sector. “For multifamily, these are peoples’ homes, and for many it’s become the place to work as well,” said Marc Wieder, co-leader of the real estate group at accounting firm Anchin. “It’s become even more important than before.”Multifamily assets have not yet seen widespread distress. Firms whose portfolios are short on multifamily are looking to acquire more, and some are pondering converting nonperforming assets to apartments.“There really isn’t any distress to speak of in the multifamily market. But any owner would be lying if he said income hasn’t gone down.”Stuart Boesky, Pembrook Capital ManagementStill, multifamily profits have diminished, and the sector would not be immune to a long recession. A U.S. Census survey found 15 percent of tenants were not current on rent in October. Eviction moratoriums and the prospect of rent control loom. Some owners are impatient with moratoriums, arguing that the possibility of eviction is necessary to get some tenants to pay.“There really isn’t any distress to speak of in the multifamily market,” said Stuart Boesky, chief executive officer of New York-based investment firm Pembrook Capital Management. “But any owner would be lying if he said [net operating income] hasn’t gone down.”Collections stable for nowThe memory of federal stimulus checks has faded, and the $600-a-week federal unemployment supplement ended in July. Rent collection, however, has not fallen much, a survey of 11.5 million market-rate apartments shows.Jeffrey Levine, chair of Douglaston Development, said that in his affordable portfolio, rent collection is about 80 percent and occupancy is in the high 90s. In units covered by Section 8, a federal subsidy, occupancy and collection have not dropped at all, because of steady checks from the government.Not all apartment owners are faring so well, however.Daniel Goldstein, managing partner of E&M Management, a New York City owner that in recent years has become the Hudson Valley’s largest landlord, said rent collection in the firm’s portfolio has dwindled to 65 percent of normal. It was better early in the pandemic, he said, when tenants were receiving enhanced unemployment benefits.Still, Goldstein said he is thankful to not be an office landlord. In fact, his firm is in contract to purchase two office towers outside of the city to convert into apartments.New York-based Gaia Real Estate, led by Chief Executive Officer Danny Fishman, is pursuing a similar strategy. His firm is considering converting hotels in New York City to residential, but he declined to share details.Although rent rolls have not suffered the losses predicted in the spring, many landlords are troubled by the prospect of extended eviction bans. The Centers for Disease Control and Prevention implemented one in September. Some states and cities have more stringent bans. Many in the industry expect the moratoriums to endure, given surging infections.“If there is a feeling of possibly being evicted, instead of buying a 40-inch TV, tenants pay the rent. Not having that feeling is causing a lot of problems.”Daniel Goldstein, E&M Management“If things go along the way they have been, or possibly worse, there is a good chance the eviction moratorium will be extended,” said Wieder, the accounting firm executive. “It is imperative that the government look out for people in their homes, because they will become a burden to the government if they are evicted.”Wieder also lamented the lack of government assistance for landlords, who were ostensibly shut out of the Paycheck Protection Program — although a number of landlords and developers were able to tap into it through loopholes and affiliated entities.Even as some industry professionals acknowledge that evictions are problematic during a health crisis, others say some tenants are exploiting the protections unfairly.One large New York City property owner, speaking on condition of anonymity, expressed hope that Gov. Andrew Cuomo would lift the eviction limits in New York for “those who are taking advantage of the pandemic by using it as an excuse to not pay rent, despite their ability to do so, or abide by the nuisance terms of their lease.”Goldstein put it more bluntly: The threat of eviction compels tenants to pay rent, he said, and without it, some tenants choose not to.“If there is a feeling of possibly being evicted, instead of buying a 40-inch TV, tenants pay the rent,” Goldstein said. “Not having that feeling is causing a lot of problems.”Beyond CovidThe problems that do exist in the multifamily market were brewing long before Covid.In New York City, a spate of tenant-friendly regulations passed last year, and subsequent electoral gains from tenant-backed politicians pushing more rent regulation will be a driver of distress in the multifamily market, said Boesky.“The biggest problem New York has is the new rent regulations that came into existence last year,” the investment manager said. “That’s a bigger issue [for multifamily] than the coronavirus.”Investors are concerned that rent regulations will be expanded to new development — although legislation to do so has made little progress — and are less willing to assume that risk, Boesky explained.“There is a huge chilling effect caused by the rent regulations, even though they don’t apply to new development,” said Boesky. “Why would you take the risk until you know for certain it will blow over?”At the same time, industry forces prevailed in California with the defeat on Election Day of two ballot measures viewed unfavorably by real estate. Proposition 15 would have raised taxes on commercial real estate owners, and Proposition 21 would have allowed localities to expand rent control. The real estate industry spent more than $100 million on opposition campaigns.The changes in New York, which some say eroded multifamily asset values 25 to 30 percent, have not yet resulted in widespread fire sales. Among those whose equity was wiped out by the new law, few are ready to sell at prices low enough to entice buyers. “Eventually, there will be an opportunity to purchase those [assets] at cap rates that make sense,” said Levine, referring to buildings purchased with rent-hike expectations that were dashed by the new law.Laurent Morali, president of Kushner Companies, explained that it may take some time for the rent-regulated market to stabilize.“If you’re going to buy something today [in New York City] it takes a bit of courage — you don’t want to be an investor buying something and then six months later look like a fool because a much bigger trade takes place at a much lower price,” he said.Even in the city, where the vast majority of the state’s rent-stabilized portfolios are, only those overleveraged will be at risk of default. It’s unclear what fraction of the market that could be, and lenders, rather than take back the keys, might prefer to let borrowers restructure their debt.New York’s rent law reform stemmed from a progressive turn in the state’s politics. Yet some multifamily owners see signs that, despite more wins by far-left candidates this year, state politics are moderating.In the November election, some Democrats hoped to secure a veto-proof majority in the state Senate — allowing them to pass more progressive legislation — but the Election Day ballot count suggests they might lose a seat or two. With a more evenly divided statehouse, many expect Cuomo to push for more moderate legislation.One large property owner, speaking on condition of anonymity, was encouraged by the federal and state elections but worried about next year’s mayoral and Council races.“We are looking toward next year’s New York City elections with the hope of a city government interested in governing for all New Yorkers and those looking to move to New York, not merely implementing unsustainable policies that meet the demands of tenant advocates or socialist politicians,” the owner said.“The stability of New York’s housing is on the edge of a precipice and requires pragmatic leadership to secure it.”last_img read more

Petronet LNG Profit Dips, India

first_imgPetronet LNG posted a net profit of Rs. 2253.20 million for the quarter ended June 30, down 17 percent as compared to Rs. 2708.50 million for the quarter ended June 30, 2012.Total income has increased from Rs. 70570.10 million for the quarter ended June 30, 2012 to Rs. 84594.40 million for the quarter ended June 30, 2013.The company’s Dahej LNG terminal processed 129.5 Trillion British thermal units of gas in this quarter, compared to 127.17 Trillion British thermal units of gas in the corresponding quarter.[mappress]LNG World News Staff, July 30, 2013last_img read more

“Dancing with the Stars” Pros Peta and Maks Welcome Baby Boy

first_imgAlo Ceballos/Getty Images(NEW YORK) — Dancing With the Stars pros Peta Murgatroyd and Maksim Chmerkovskiy are doing the happy dance: they have a brand new baby boy.According to Maks’ Twitter feed, the pair welcomed Shai Aleksander Chmerkovskiy into the world at 5:34 Wednesday morning.The good news followed an late night video from Maks on Monday, followed by a photo Tuesday of Peta touching up her makeup in her hospital bed.Chmerkovskiy, 36, and Murgatroyd, 30, announced their engagement in December 2015. Six months later, they revealed they were expecting their first child.Copyright © 2017, ABC Radio. All rights reserved.Powered by WPeMatico Relatedlast_img read more

SportShorts: Federer roars again, Vettel’s Ferrari ‘no cheaters’

first_imgCRICKETAgarwal hits double ton as India seize control of Bangladesh TestMayank Agarwal struck his second double century in four Tests as India built a giant 343 first innings lead over Bangladesh on day two of their opening Test.The 28-year-old opener, who has hit three tons including two double hundreds in his last five Test innings, hit eight sixes and 28 fours in his 243.Agarwal passed 200 with a six off Mehidy Hasan and went on with his big hits until he was finally caught at deep mid-wicket by Abu Jayed off Mehidy. He left to another standing ovation.India were 493 for six at stumps in response to Bangladesh’s 150 all out on Thursday.Ravindra Jadeja, on 60, and Umesh Yadav, on 25, were at the crease promising more fireworks. – AFP.=============TENNISThe Fed atones for Wimbledon heartbreak Roger Federer produced a near-flawless performance as he avenged his Wimbledon defeat by Novak Djokovic and qualified for the last four of the ATP Finals with a 6-4, 6-3 victory on Thursday.The Swiss started the tournament with a chastening straight-sets defeat to Dominic Thiem but found his best form when it mattered.Defeat for the second seed spells the end of his bid to overtake Rafael Nadal and finish as year-end number one.“Great atmosphere, great opponent,” said Federer, who hit 23 winners and made just five unforced errors. “It was definitely incredibly special. I enjoyed it from the beginning.“I played incredible and I knew I had to because that’s what Novak does. It was definitely magical.” – AFP.=============FORMULA ONEVettel hits back at ‘immature’ Verstappen’s ‘cheating’ claimsSebastian Vettel and his Ferrari teammate Charles Leclerc defended their team Thursday, dismissing suggestions that the Italian outfit had done anything suspicious to generate extra engine power this year.Speaking ahead of this weekend’s Brazilian Grand Prix, four-time world champion Vettel declined to go into any detail, but made clear his feelings on “cheating” claims made by Red Bull’s Max Verstappen in the wake of the United States Grand Prix two weeks ago.“I don’t think there is much to be said about it,” said Vettel. “I think that comment was very immature… I ignore it because it is irrelevant. We want to answer on the circuit.”The German driver added that the Austin race was “not a good weekend for us” and said that “on top of the fact that we have a performing engine, we also have a car that I think is very efficient”. – AFP.For more news your way, download The Citizen’s app for iOS and Android.last_img read more

Ex-NFL player Jonathan Martin charged with teammate threats

first_imgLOS ANGELES (AP) — Former Miami Dolphins offensive lineman Jonathan Martin was charged Tuesday with threatening two former teammates who had harassed him in the NFL and with threatening his former prep school classmates, Los Angeles County prosecutors said. In this Dec. 2, 2012, file photo, Miami Dolphins tackle Jonathan Martin looks up from the bench during the second half of an NFL football game against the New England Patriots in Miami.(AP Photo/Wilfredo Lee, file) Martin pleaded not guilty to four felony counts of making criminal threats and a misdemeanor charge of carrying a loaded firearm, district attorney’s office spokesman Greg Risling said.A post on Martin’s Instagram page last month showed a shotgun and referred by name to the private Harvard-Westlake prep school in Los Angeles that he once attended.The post also included mentions of the Instagram usernames of former Miami Dolphins players Richie Incognito and Mike Pouncey and said suicide and revenge were the only options for a victim of bullying.Martin left the Dolphins midseason in 2013 after accusing teammates of bullying. An NFL investigation found that Incognito, Pouncey and teammate John Jerry engaged in persistent harassment directed at Martin.Incognito was suspended for the final eight games and sat out the 2014 season before joining the Buffalo Bills.Pouncey was released by Miami last week and agreed to a two-year contract Monday with the Los Angeles ChargersThe NFL’s investigation also found that teammates threatened to rape Martin’s sister, called him a long list of slurs and bullied him for not being “black enough.” Martin is black and Incognito is white.Court documents say Martin “did willfully and unlawfully threaten to commit a crime which would result in death and great bodily injury” of Pouncey and Incognito. Both Pouncey and Incognito feared for their own safety and the safety of their families, the documents said.Prosecutors said Martin also had a loaded firearm in his vehicle in Glendale, but court papers provided no other details.The name of Martin’s attorney was not immediately known. Prosecutors said he is due back in court next month and faces up to six years in prison if he’s convicted.___More AP NFL: https://pro32.ap.org and https://twitter.com/AP_NFLlast_img read more

Lucky Phil finds form

first_imgDROUIN GOLF IN SATURDAY competition Phil Thomson took out the A Grade with 40 points, while Jock Granger won B…[To read the rest of this story Subscribe or Login to the Gazette Access Pass] Thanks for reading the Pakenham Berwick Gazette. Subscribe or Login to read the rest of this content with the Gazette Digital Access Pass subscription.last_img

Covid barre-iers leave dancers in limbo

first_imgA prominent Berwick dance school is urging Premier Daniel Andrews to lift the number of students that can return to…[To read the rest of this story Subscribe or Login to the Gazette Access Pass] Thanks for reading the Pakenham Berwick Gazette. Subscribe or Login to read the rest of this content with the Gazette Digital Access Pass subscription. By Mitchell Clarke last_img