New Adventure RREEF, the real estate and infrastructure investment management arm of Deutsche Bank, has ventured into the Far East with a mid-market, mass residential project in Zhuhai, China. RREEF will partner with one Macanese investor and two Chinese co-investors to develop a $225 million residential project in the northwestern district of New Xiangzhou. It will offer affordable apartments primarily to local middle-class residents. —L.S.
Slowing Market Don’t think the multifamily sales market is slowing down? Check out a recent Mortgage Bankers Association report that says there was a 15 percent decrease in loans for multifamily properties from the third quarter of 2005 to the third quarter of 2006. Multifamily also saw a decrease in originations of 1 percent over the second quarter of 2006. —L.S.
Priced Out Apartments aren’t getting any cheaper. In 2006, the cost of affordable rental housing continued to outpace the wages of those who need it. The national two-bedroom housing wage climbed to $16.31, up from $15.78 in ‘05, according to The National Low Income Housing Coalition’s annual “Out of Reach” report. This is the hourly wage a full-time worker must earn in order to afford a two-bedroom unit at a community’s fair market rent. —R.Z.A.
The Miami condo market may finally be collapsing, according to a recent South Florida Business Journal story. The paper reports that many condo buyers are looking for loopholes to get out of their contracts. If they can’t find one, they may just walk away from thousands of dollars in deposits. This could send the market into a freefall. With 6,000 residential units built in the last year and more than 22,000 coming on line this year, the market is already saturated. —L.S.
Southern Living More help is on the way for hurricane-devastated Biloxi, Miss. The Biloxi Housing Authority plans to rebuild or develop more than 1,500 homes and apartments with financial assistance from Enterprise Community Partners, Fannie Mae, and others. Fannie Mae is reviewing an $18 million line of credit, joining Enterprise’s $500,000 line. The two groups also are giving a combined grant of $325,000. The authority lost about 70 percent of its housing units as a result of Katrina. —R.Z.A.
Overseas Adventure The Urban Land Institute is headed to the Middle East. The Washington, D.C.-based global research and education institute is creating a ULI Centre for Real Estate Education in Abu Dhabi in the United Arab Emirates. The center’s goal is to advance the professional knowledge and skills of those working in land use and development. ULI also plans to establish a ULI District Council in Abu Dhabi. —R.Z.A.
Executive Feedback Q & A How is the immigration debate and its possible outcome affecting your operations?
A: “Requesting apartment managers to verify the legal status of potential residents is an intrusive violation of the privacy rights of all Americans and represents an ineffectual response, an unimaginative, knee-jerk ‘Band-Aid’ approach to a failed national immigration policy. It also is sad because it is a forgetful renunciation of our proud heritage. We are a nation of immigrants, each new wave adding to the strength and character of our great land.” —Nathan S. Collier, founder and principal, Collier Enterprises/Paradigm Properties
A: “[Illegal immigrants’] false documentation could be provided. False documentation seems to be an issue that should be handled at the national government level, not at the site level. If [municipalities] initiate anti-immigration measures, we might consider passing the additional occupancy permitting costs onto the applicant.” —Laurie Lyons, CEO, BH
A: “Fair Housing requires treating everybody equally. As firms increase scrutiny of immigrants, they must increase scrutiny of all applicants.” —Terry Feinberg, president, Arizona Multihousing Association