Archive

Posts Tagged ‘Multifamily’

Chinese PreFabs, Modulars Are Selling in the USA, Here’s an Example

August 24th, 2018 Comments off

 

PatrickKennedyPanoramicInterestsChinaChineseModularPrefabsDailyBusinessNewsMHproNewsThe Daily Business News on MHProNews has spotlighted Patrick Kennedy with Panoramic Interests before.

 

Tiny Prefab Builder Takes His Show on the Road

Kennedy is keen on using modular/prefabs in multifamily projects to save time and costs. As thousands of factory-built housing professionals know, he’s not alone.

Cities Housing the Homeless – are Modular Homes an Answer?

What makes this project worthy of attention is where the units are being built.

The pre-fabricated units were built in China. The transoceanic shipping costs were less than the cost of trucking the units from docks in the Bay Area to Shattuck Avenue in Berkeley, CA per ABC7.

ChinesModStillABC7BerkleyCA

One of the modular units being swung into place for the 4 story high project.

This is our second modular project and we’re trying to figure out a way to bring down the cost of building housing,” said Kennedy.

Kennedy’s photos show that the prefabricated units were stacked in just four days. “Imagine Lego blocks where a crane sets each rectangular box into place,” said Katie Utehs for the local media.

LegacyManufacturedHousing-LiquidationEvent-HurricanOverRun-image500x335

Click the above to learn more or register for the event, which is unrelated to the article.

Prefab [from China] really only works if you’re close to the ports because your trucking costs kill you as soon as you go far,” explained Kennedy to one of the onsite workers.

The stairwells and the hallways get finished on site, but the units proper are completely done at the factory,” explained Kennedy. As industry pros understand, the units are connect by local contractors, electricians, and plumbers, but the individual studios are shipped finished.

 

ManufacturedHousingAssocRegulatoryReformJOINMHARRbani-200x200

Click here or above to learn more, which is not connected to this report.

This building has 22 units, and is on an expensive piece of property. There are 310 square feet, built to house two. ADA accessible units are on the first floor. There’s no parking or elevator for this four-story building, but there will be bike lockers, as it is geared toward student housing.

In a residential neighborhood that’s been here for more than 100 years there’s no sense of trying to fit in,” said Todd Darling, a less than happy Berkeley resident.

We’re never going to build our way out of a housing crisis there are more people that want to live in the Bay Area then there is room for,” said Darling, who reflects the NIMBYism that is driving housing costs in metro areas higher and higher.

This project was originally authorized in 2010 as a boutique hotel, but the developers later partnered with UC Berkeley in 2015 to make it graduate student housing.  That time line also reflects the implied holding costs for such developments.

This got approved under a much more sympathetic administration with Mayor Bates, when Mayor Bates was Mayor. In fact he lives around the corner,” Kennedy said.

The housing is scheduled for completion by September 1st. UC Berkeley set the rental rate for the furnished units at $2,180.

Stat8ingFactsExamingEvidenceArent'NegativeOrCursingtheDarknessNecessaryStepsFIndingLightswtichMakingGenuineProgressLATonyKovachQuoteMHProNews

Industry Takeaways?

MHProNews has been reporting for years that foreign producers have targeted the U.S. for projects like this.

The Daily Business News receives periodic contacts from producers of housing, most commonly from Asian nations, which are aiming at doing single or multi-family housing in the U.S.

It is one of several undercurrents that manufactured and modular housing professionals and investors in the U.S. should keep in mind in navigating the crests and waves that are part of the factory-built housing industry’s reality.  “We Provide, You Decide.” © ## (News, analysis and commentary.)

(Third party images, content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews
2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

Related Reports:

Billion Dollar Startup Modular Builder, Using Robotics, Could Soon Rival Clayton Homes’ Total Sales

Sunday Morning Manufactured Home Industry Research, Reports, Headline News Recap 6.17.2018 to 6.24.2018

 

Survey Top 2017 PreFab, Modular, Tiny and 3D Printed Housing News Stories

Champion Homes Expanding Operations in Kentucky

April 30th, 2016 Comments off

champion_homes__creditChampion Home Builders will invest $6.3 million in a manufacturing plant in Benton, Kentucky, leasing a 100,000 square foot facility and create up to 150 jobs for production of manufactured homes, according to kyforward.

As encouragement to the investment in the community, the Kentucky Economic Development Finance Authority has initially approved up to $2.25 million in tax incentives through the Kentucky Business Investment program. Champion will also be eligible to receive job placement services, reduced-cost customized training as well as job training incentives through the Kentucky Skills Network.

Starting as a single manufacturing plant in Troy, Michigan in 1953, Champion now operates 28 manufacturing facilities throughout North America and Europe, employing over 4,200 people. MHProNews understands the company makes manufactured, modular and park model homes as well as modular buildings for the multi-family, hospitality, senior and workforce housing markets.

Benton’s Mayor Rita Dotson said, “I am pleased to welcome Champion Homes to Benton, Kentucky. We are all very excited to see new opportunity created for our citizens. Congratulations Champion Homes and welcome to our community.” ##

(Photo credit:Champion Home Builders)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

New Home Construction Falls to Six Month Low

April 19th, 2016 Comments off

housingwire creditWith weakness in all regions of the country except the Northeast, construction of new homes dropped 8.8 percent to a seasonally-adjusted annual rate (SAAR) of 1.09 million units in March, according to what heraldonline tells MHProNews, based on statistics from the Commerce Department. The slowest rate since October, it marked the third decline in the past four months.

Permits to build new homes fell 7.7 percent in March to an SAAR of 1.09 units. Single-family home construction also declined in March, falling 9.2 percent to a seasonally adjusted rate of 764,000. Multi-family construction also dropped in March, falling 7.9 percent to a 325,000 rate, leading to an overall drop of 8.8 percent, the biggest one-month decline since a fall of 11.3 percent in October.

Regionally, construction spiked in the Northeast 61.3 percent in March, while sales plummeted 25.3 percent in the Midwest, 15.7 percent in the West and 8.4 percent in the South. ##

(Image credit: housingwire)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

 

 

Manufactured Housing Included in GSE Lending

February 2nd, 2016 Comments off

mortgage app  housingwire creditHitting a record high of nearly $90 billion in multifamily lending in 2015, the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, are poised to hit another new lending record this year as their volume lending caps are adjusted by the government.

Freddie Mac topped the two multifamily lenders with $47.3 billion in loan purchase volume, spiking from $28.3 billion in 2014, according to what costar tells MHProNews. Ninety percent of the $42.3 billion in financing provided by Fannie Mae to the multifamily market in 2015 supported 569,000 units of multifamily housing.

Said David Brickman, executive vice president of Freddie Mac Multifamily: Our financing is in every corner of the multifamily market and more diverse than ever, reaching into small balance loans, manufactured housing communities, seniors, student and government subsidized properties. We are focused on increasing the availability of mortgage capital, especially to the affordable and workforce housing sectors where demand continues to far outstrip supply.”

Roughly $17 billion was not subject to the Federal Housing Finance Agency’s $30 billion cap and included loans for manufactured housing, senior housing, affordable housing and smaller multifamily housing.

Of the total 2015 multifamily production, manufactured housing communities accounted for $786 million, an increase of 58 percent over the $496 million in 2014.

Melvin L. Watt, director of the FHFA, says the agency will maintain the $30 billion cap for the GSEs in 2016, and will perform a quarterly review of the market to determine if adjustments are necessary. He said, “We will continue to exclude from the cap loans for affordable properties, including those in higher-cost areas. We will also continue to exclude certain loans for manufactured housing communities, as well as seniors housing and small multifamily properties affordable to low-income tenants.” ##

(Image credit: housingwire)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Government Sponsored Enterprises Grew Multifamily Loans in 2015

January 14th, 2016 Comments off

freddie mac  globest   creditGSEs Fannie Mae and Freddie Mac both increased their multifamily loans and credit enhancements business in 2015, totaling $89.6 billion on the year. Freddie edged out Fannie in volume, with Freddie writing $47.3 billion, a 67 percent increase from 2014’s $28.3 billion, while Fannie reported $42.3 billion, a 46% increase from the $28.9 billion mark set in 2014.

Of Freddie’s new business volume, $17 billion was not subject to the FHFA $30 billion cap and was used for manufactured home loans as well as for senior housing, smaller multifamily projects and affordable housing.

David Brickman, executive vice president for Freddie’s multifamily, said, “Our financing is in every corner of the multifamily market and more diverse than ever. We are focused on increasing the availability of mortgage capital, especially to the affordable and workforce housing sectors where demand continues to far outstrip supply.”

Ninety percent of Freddie Mac loans support rental units for low- and moderate-income households. Further, the majority of the $47 billion purchased in multifamily mortgages were then securitized transferring most of the credit risk from taxpayers to private investors.

At Fannie Mae, Bob Simpson, vice president of affordable, green, and small-loan business at the company, said last year there was considerable growth in in its affordable housing loans.

We rolled out a competitive bridge-loan product this year called the ARM 7-4,” Simpson said in September. “Basically, it provides borrowers with a seven-year, variable-rate loan with a 4% embedded cap. It comes with a one-year lockout, a 1% prepay premium, and a fixed-rate conversion option. We’ve seen a tremendous amount of growth with this product for preservation deals because it provides borrowers with the flexibility of a bridge loan so they can acquire a property and turn it into a tax credit deal a year or two down the road, or they can convert it to a permanent fixed-rate loan if their plans change.” ##

(Photo credit: globest–Freddie Mac headquarters)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Capital One Brokers Loan for Orange Grove Land Lease Community

November 18th, 2015 Comments off

orange_grove_mhc__san_fernando_ca__google_maps__creditMHProNews has learned from Capital One that it arranged a $3.1 million fixed-rate loan package through Ladder Capital Finance to refinance the Orange Grove manufactured home community (MHC) in San Fernando, California. Senior Vice President Chad Thomas Hagwood, the head of Capital One Multifamily’s Birmingham, Ala. office, brokered the transaction for the 77 home site community.

With over 30 years in the MHC business, Orange Grove MHP Group, LLC has owned Orange Grove 20 years and currently owns and operates 11 MHCs in Arizona, California, Colorado, Georgia, and New Mexico. Hagwood has worked with Orange Grove in the past.

Amortized on a 30-year schedule payable on an actual/360 basis, the fixed-rate loan has a ten-year term. ##

(Photo credit: googlemaps–Orange Grove manufactured home community)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Multifamily Residential Building Expected to Slow in Coming Year

November 4th, 2015 Comments off

multifamily_building_Nov_2015_report__nahb__creditAccording to the National Association of Homebuilders (NAHB) index, the pace of multifamily residential construction rose 27 percent in Sept. over Sept. of 2014, while spending on single-family building was up 13 percent for the same period.

Total private residential construction for Sept. rose to a seasonally adjusted annual rate of $395 billion. On a month-to-month basis, private single-family was $222 billion, up by 1.3 percent over the August, 2015 number, while private multifamily rose five percent to $57 billion.

The index tells MHProNews that steady gains in the multifamily sector have been driving the index, but the pace of that sector is slowing, and accelerated growth is anticipated for the single-family sector in the coming year. ##

(Graphic credit: National Association of Homebuilders)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

July Housing Starts Reach Highest Level since Oct. 2007, Led by Single-family

August 20th, 2015 Comments off

house under const  housingwireStatistics from the U. S. Department of Housing and Urban Development (HUD) and the Commerce Department indicate housing starts nationwide edged up 0.2 percent in July to a seasonally annual-adjusted rate (SAAR) of 1.206 million units, the highest level since Oct. 2007, according to worldpropertyjournal.

Single-family starts increased 12.8 percent to a SAAR of 782,000 units while multifamily production dropped 17 percent to 424,000 units. The opposite was true in June, as MHProNews reported July 20, 2015 when single-family starts dropped 0.9 percent from May and multifamily spiked 28.6 percent as the demand for rentals rose.

National Association of Home Builders (NAHB) Chief Economist David Crowe said, While multifamily production has fully recovered from the downturn, single-family starts are improving at a slow and sometimes intermittent rate as consumer confidence gradually rebounds. Continued job and economic growth will keep single-family housing moving forward.

Regionally, in July housing starts rose 20.1 percent in the Midwest and 7.7 percent in the South, while the Northeast fell 27.5 percent and the West dropped 3.1 percent.

New housing permits fell overall 16.3 percent in July: single-family slipped 1.9 percent to a a rate of 679,000, while multifamily dropped 31.8 percent to 440,000. ##

(Photo credit: housingwire)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Single and Multifamily Housing Starts Rise in July

August 19th, 2014 Comments off

Housing Starts in U.S. Declined by 5.9% Amid February SnowSpurred by strong single-family and multifamily growth, housing starts for July rose 15.7 percent to a seasonally-adjusted annual rate (SAAR) of 1.093 million units, the highest rate since Nov. 2013, as reported by the U. S. Department of Housing and Urban Development (HUD) and the U. S. Census Bureau. According to the National Association of Home Builders (NAHB), multifamily production spiked 28.9 percent while single-family housing starts rose 8.3 percent. Regionally, combined housing starts rose in the Northeast 44 percent, in the South 29 percent, and in the West 18.6 percent. Production dropped in the Midwest 24.8 percent following an unusually high rate in June. Issuance of building permits grew 8.1 percent in July, as MHProNews has learned—multifamily permits rose 21.5 percent to 412,000 units while single-family grew 0.9 percent to 640,000 units. ##

(Photo credit: bloombergbusinessweek.com–multifamily home construction)

Fitch Predicts Housing Market will Expand 16 Percent

July 22nd, 2014 Comments off

Fitch Ratings expects the housing market to continue growing this year and become much stronger in 2015, according to housingwire.com. Fitch forecasts single-family housing starts to grow 9.5 percent the remainder of the year to 677,000, and new home sales to advance eight percent to 465,000 while home volume will drop five percent to 4.835 million because of fewer distressed homes for sale. Fitch analysts further say, “Growing strength in the economy, employment and demographics should positively influence housing next year. Total housing starts are projected to expand 16% to 1.185 million as single-family starts advance 21% and multifamily volume gain 6.7%. New home sales should improve more than 20%, while existing home sales rise 5%.” In addition, MHProNews has learned Fitch predicts more of the Millennials now living at home will find work and “provide some incremental elevation to the rental and starter home markets.” ##

(Image credit: globest.com)