From: Apartment Wiz 

Green building is a term that has been used more frequently as of recent years, but what is the advantage of living in a green building?According to the EPA, buildings in the United States are responsible for:

• 39% of total energy use
• 12% of water consumption
• 68% of total electricity consumption
• 38% of total carbon dioxide emissions

Green residential buildings are booming across the US, and apartment buildings are no different.

The most prominent feature of green apartment buildings are recycled construction materials.

Contact Rick Bean if you would like to learn more about green apartments, and investing in eco-friendly projects:  rick@rosecitycre.com, or 503.577.1034.

Builders use recycled metal, wood, stone, and other materials without depleting natural resources. Residence conscious about green building feel good about saving trees and using alternate resources for hardwood flooring.Wood substitutes like Bamboo, which can replace itself in 6 years, are a very popular alternative. Another method is to use building material from the construction site. Builders are also using natural resources from the construction site itself in order to avoid purchasing materials from another site.

To increase energy efficiency, green apartment properties have implemented new designs and technology. Some properties use onsite renewable energy solutions such as wind power, solar panels, and hydro power. Energy-efficient light bulbs, Energy Star certified appliances, and dual-flush toilets are some of the features apartment properties can use to reduce energy consumption.

Recent water shortages across the US have increased awareness for water conservation efforts. Green apartment buildings along the west coast have implemented water-conserving features. Examples of this include rainwater collectors and grey water reuse for daily functions like flushing toilets, washing cars, and watering plants.Grey water is waste water generated from domestic purposes such as washing dishes, bathing, and laundrey, and comprises 50%-80% of all wastewater generated in residential areas. Greywater recycling can lower fresh water extraction, groundwater recharge, plant growth, and reduce the energy use required for water treatment.

Green roofs and rooftop gardens have the ability to reduce urban heat pollution. It is common knowledge that asphalt and concrete can radiate heat to dangerous levels. Imagine standing in a parking lot in a summer day. Now imagine the parking lot and increase it to the size of a large city like Los Angeles.

This urban heat island effect causes increased energy consumption. The Heat Island Group estimates that the urban heat island effect costs the Los Angeles area about $100 million per year in energy costs. The urban heat island effect can also increase the magnitude of heat waves in cities, which can lead to deaths among people that are susceptible to heat.

But why live in a green apartment? Tenants can save money by lowering their utility bills. Renewable energy sources and energy efficient building materials are a sure fire way to cut costs on the monthly bill. Residents can also actively participate in reducing energy consumption. Finally, residents will be living in a healthier environment since green roofs will lower heat radiation and reduce the effects of the urban heat island.

 

 

It is a bullish sentiment that gathered steam through 2010. With few projects initiated in 2009, there will be a shortage in the supply of rental apartments this year. Combined with a stabilizing economy, continuing uncertainty in single-family home prices, and echo boomers boosting demand, it will be heaven for multifamily in 2011.

Expect rents to grow at rates unseen since the early 1990s, when the sector experienced a similar pullback in construction. However, will these good times be sustainable? Or will heaven crash back down to earth as soon as 2012?

There is compelling evidence that effective rents will indeed post strong growth in 2011. Despite moribund economic growth in 2010, apartment vacancies fell sharply, ending the year at 6.6% after starting from a record-high base of 8%. Concessions that included subsidies for utilities and broker commissions as well as months of free rent were withdrawn swiftly.

This article is reprinted from National Real Estate Investor.  Their articles are insightful, timely and reliable. 

The time to buy is when the market is heading up.  All the signs are there suggesting the best multifamily climate in years.  To learn more about investing in Portland’s multifamily market, call Rick Bean at 503.577.1034 or contact him at rick@rosecitycre.com.

National effective rents grew by 2.3% in 2010, a healthy rebound given the record 2.9% decline in 2009. And this was when about 94,000 apartment units came on line and jobs were growing at a disappointing rate.

A rising tide …

Inventory growth will contract significantly in 2011. Reis projections add up to only about 51,000 units coming on line in 79 major metro markets. This is less than half of the

via Heaven for Multifamily in 2011, Closer to Earth in 2012.

I’ve to talked to property owners, brokers, title companies…but nobody seems to know of any properties for sale that fully meet the needs of one of my clients.  He has no 1031 or 1033 Exchange deadlines to worry about…but he does have cash sufficient to purchase 60 to 80 quality units in the Portland area.  Wilsonville doesn’t hit his sweet spot…nor does Gresham or much East of I-205.  Vancouver is possible…West and Southwest PDX would be winners. 

He’s willing to pay a fair price for quality. 

He takes real pride in ownership:  fixer-uppers are not his thing.   This is a knowledgeable investor who puts little stock into overly optimistic proformas.  The challenge for me is to deliver value to him he can’t find elsewhere by himself.  Off-market deals, pocket listings are more likely to get consideration than something on Loop-Net or Read more

 

 Associated Estates is a self administered, self managed Real Estate Investment Trust that owns 13,192 multifamily units in 52 communities in 9 states.  Their CEO, Jefferey Friedman, was interviewed by Keat Foong, the Executive Editor of Multi Housing News. 

New Renters Will Outstrip the Supply of Apartments

The number of new renters will exceed the supply of apartments by as much as two times, according to the president and CEO of Associated Estates Realty Corp. Jeffrey Friedman.

In an interview with MHN, Friedman argued that demographic patterns in this and next decade dictate that there will be strong demand for apartments that will outstrip supply. 

Friedman explained that the homeownership rate is about 65 percent currently, and that the total number of households in the US is about 120 million. “If 35 percent of the population rents, we are talking about 40 million households that are renters,” he said.

According to the census bureau, there will be 15 million new households over the next 10 years, translating to about 1.5 million new households per year. If only 30 percent of these households rent, says Friedman, this will mean there will be 450,000 new rental households per year in the next 10 years. 

However, apartment starts have been hovering at around only 200,000 units from the supply standpoint. “We know there is no overbuilding,” says Friedman. If this pattern holds, “In fact, there will be half as many new apartments built as new renters coming into the market,” he says. Read more

Even though Apartment Managers have plenty on their plates, adding environmental awareness is good business. Kim Duty, Vice President of Communications for Multifamily Housing Report has a green tip for us:

The U.S. Environmental Protection Agency has launched a multifamily version of its ENERGY STAR Portfolio Manager. The online energy performance tracking tool allows building owners and operators to measure and manage their buildings’ energy consumption.

A comparable tool has existed for the office sector for more than a decade, and the National Multi Housing Council has been urging EPA to release a multifamily-specific version for years. The tool will allow apartment owners to assess their portfolios’ energy performance, identify under-performing buildings, set investment priorities to make targeted energy efficiency improvements and earn recognition for achievements.

Using Portfolio Manager, apartment firms can enter building square footage and whole-community energy and water data, as well as optional building attributes, to benchmark performance.

To learn more about the ENERGY STAR Portfolio Manager, visit NMHC’s Green Practices web site at www.nmhc.org/goto/5147.   To learn more about National Multi Housing Council go to www.NMHC.org.  They have a number of free industry related resources.  And remember…green’s not just good for the environment…it’s good business.

If you’re ready to upgrade your investment  performance, contact Rick M. Bean at: 503.577.1034 or:  rick@rosecitycre.com.