INDUSTRY NEWS

 

Hanley Woods’ “Affordable Housing Finance” Publication Releases The “Top” Lists

Each year, AHF publishes lists of the top developers, owners, companies completing acquisitions and companies completing substantial rehabs. These lists include some of biggest players in the entire country when it comes to multifamily housing. Gill Group is proud to be working with the majority of these entities; so, we wanted to pass along the lists published by AHF:

Top 50 Affordable Housing Owners of 2016

Top 50 Affordable Housing Developers of 2016

Top 10 Companies Completing Acquisitions in 2016

Top 10 Companies Completing Substantial Rehabs in 2016

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Cash Gill, of Gill Group, Provides Appraisal and Market Study Training for The New Mexico Mortgage Finance Authority (MFA)

On April 20th, Cash Gill provided an all-day training session to the majority of MFA’s staff. As an MAI and a Gubernatorial-appointed Real Estate Appraisers Commissioner, Mr. Gill was chosen by MFA’s senior leaders to train the staff on everything from what it takes to become an MAI to reviewing and receiving final documents from third-party providers.

Sessions included:

“What is an MAI Designation?”, which delved into the education and experience required to obtain the Appraisal Institute’s highest designation and how that differs from other designations as well as how it difference from becoming a “General Certified” Appraiser.

“The Appraisal Process”, which was a combination of differences between market studies and appraisals as well as more in-depth information involving primary market areas; basic principles and procedures; differences between appraisals for Low Income Housing Tax Credits, HUD (Section 8 vs Multifamily Accelerated Processing), Rental Assistance Demonstration and Rural Development; and the types of appraisals that use value-type combinations that work for all entities together. This portion also included special interest valuation types such as leasehold interests, market-rate leased land versus below-market-rate leased land, limited partnership versus general partnership interests, favorable financing, and the effects of adding energy efficiency items.

In addition to the process for all of those different items, the training included an understanding of the differences between “As Is” and “As Complete” values as well as “Market (conventional)” and “Market (restricted)”. One of the most intricate discussion topics was the use of income for properties that had 40/50/60% income levels but also RD-related and HUD-related impacts on maximum potential gross income, when the properties contain RD rental assistance and/or a HUD HAP Contract.

There were additional topics discussed for the remainder of the training session and we would be happy to discuss those with anyone needing additional training or understanding of the subject matter.

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Trump Releases Tax Plan, Rep. Brady Pushes Back House Schedule for Tax Reform

Donald Trump today has released a preliminary version of a tax plan, calling for a reduction in the corporate tax rate to 15% that is a historically low rate that may prove difficult to pass in tax reform legislation given resistance from both Democrats as well as deficit hawks in the GOP. Other features of the tax outline include eliminating all deductions for individuals except for the mortgage and charitable deductions. The president lacks authority to change the tax code, but his plan will be something for Congress to consider. After the Trump outline was announced, House Speaker Paul Ryan (R-Wis.), Senate Majority Leader Mitch McConnell (R-Ky.), House Ways & Means Committee Chairman Kevin Brady (R-Texas), and Senate Finance Committee Chairman Orrin Hatch (R-Utah) released a joint statement stating that “principles outlined by the Trump Administration today will serve as critical guideposts for Congress and the Administration as we work together to overhaul the American tax system…”

Yesterday, Rep. Brady stated his goal of passing tax reform legislation by the end of the year – a later date compared to his initial goal of this summer. Rep. Brady’s plan calls for a 20% corporate tax rate.

Note from NH&RA: While the uncertainty of tax reform has caused pricing fluctuations in the equity market, a tax overhaul could present a good opportunity for expanding the LIHTC as well. Now more than ever your help is needed for advocacy efforts. We strongly urge members to reach out to their Congressional Representatives and Senators to coordinate site visits by members of Congress and their staff to quality LIHTC, Historic Rehabilitation Tax Credit and New Markets Tax Credit properties in their respective districts or to otherwise set-up meetings to discuss the importance of these programs. The goal is to foster continued bipartisan support for the LIHTC program and other key community development programs and to show the positive community impacts these investments create in their districts.  NH&RA and our advocacy partners are happy to assist.  Contact Christian Robin at crobin@dworbell.com / 202-939-1787 or Thom Amdur at tamdur@dworbell.com / 202-939-1753 with any questions.*

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NIC: Big Deals Boost Senior Housing M&A in First Quarter

Senior housing transaction dollar volume rose by a decent amount during the beginning of this year, mostly thanks to large acquisitions made by institutional buyers such as private equity firm Blackstone. That’s according to the preliminary data for the first quarter of this year from the National Investment Center for Seniors Housing & Care (NIC).

Total volume in the first quarter of 2017 totaled $4.4 billion, an increase from the previous quarter driven primarily by a few large deals that closed in the early months of the year.

Blackstone’s $1.125 billion acquisition from HCP (NYSE: HCP) of 64 properties leased to Brookdale Senior Living (NYSE: BKD) made up roughly a quarter of that volume. Blackstone also purchased a Senior Lifestyle portfolio for $747 million from Welltower (NYSE: HCN).

“The surprising part was not the fact that institutional buyers were acquiring properties,” NIC Senior Principal Bill Kauffman told Senior Housing News. “But somewhat of a surprise was the large amount that the institutional buyers represented in Q1, which was significantly more than the previous quarter, and more than we have seen in a while in terms of representing a significant portion of the buyer volume.”

For reference, the start of 2016 also saw $4.4 billion in deals closing. Last quarter, senior housing transaction dollar volume was $2.3 billion, marking a weak end to the year.

Continuing a 2016 trend, public companies such as REITs were less active buyers in the first quarter. Volume attributed to these companies fell 36% to $421 million. That’s down from an already anemic volume of $657 million in the fourth quarter of 2016, NIC reported.

Public buyer volume was at $920 million in the first quarter of 2016.

“I think the trend is clear,” Kauffman said. “Public REITs have become more of a seller over the past year, year and a half.”

Public companies currently only represent 9% of total buyer transaction volume. REITs have backed off buying for several reasons, such as cost of capital increases, new construction coming online, and higher property prices, Kauffman noted in a Thursday blog post.

Institutional buyers like Blackstone and international investors have stepped up to acquire some of the REIT assets. Institutional buyers now make up 61% of buyer volume, a seismic change from only 15% of that volume in 2015 and 31% in 2016.

Purchases by private buyers, such as private REITs and private partnerships, declined by 26% from last quarter. Still, this was the 15th consecutive quarter with private closings totaling $1 billion or more. **

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COMPANY NEWS:

Events (2017)

  • Gill Group plans to attend NCSHA’s Housing Credit Connect Conference and Tradeshow June 21st – 23rd in Atlanta, GA.
    • Cash Gill, of Gill Group, will be speaking on a panel June 22nd entitled Using Market Studies for Site Selection
  • Gill Group plans to attend the 2017 PK Management Trade Show and Awards Dinner May 16th – 17th in Cleveland, OH.
  • Gill Group attended AHF Live’s Housing Developer’s Forum April 26th – 28th in New Orleans, LA.
  • Cash Gill, of Gill Group, gave a training session to the staff at MFA (New Mexico’s HFA) to further their knowledge on appraisal and market study processes April 20th in Albuquerque, NM.
  • Gill Group attended MHC’s Annual Meeting April 11th – 13th in Biloxi, MS.
  • Gill Group attended the Crittenden Multifamily Conference March 15th – 17th in Dallas, TX.
  • Gill Group attended the MACO Companies’ Annual Meeting March 16th – 19th in Biloxi, MS.
  • Gill Group attended the Bank of Advance’s Annual Meeting March 16th – 19th in Norfork, AR.
  • Cash Gill attended the Missouri Real Estate Appraisers Commission Quarterly Commission Meeting March 7th in Jefferson City, MO.
  • Gill Group attended National Housing & Rehabilitation Association’s Annual Meeting February 22nd – 26th in Bonita Springs, FL.
  • Gill Group attended the National Leased Housing Associations’ Mid-Year Meeting February 1st – 3rd in Naples, FL.
  • Gill Group and National Title & Escrow attended the Council for Affordable Rural Housing’s (CARH’s) Midyear Meeting (Strengthening Rural Housing with Valued Partnerships) January 23rd – 25th in Sarasota, FL.

Events (2016)

  • In 2016, Gill Group attended over 75 meetings and conferences across the entire United States.

GROWTH (2016 - Highlights):

  • Gill Group added over 20 staff members throughout our 15 national and regional offices including MAIs, General Certified Appraisers, PE Engineers and AIA Architects.
  • Gill Group’s subsidiary, National Title & Escrow (NTE), added two new underwriters: Fidelity National Title Insurance Company and Stewart Title Guaranty Company.
  • NTE also added a new sales representative, Jimmy Crace, bringing 20+ years of experience and well over 100 national relationships in commercial and multifamily title.

Events (2015)

  • In 2015, Gill Group attended over 50 meetings and conferences from California to New York, and just about everyone in between.

GROWTH (2015 - Highlights):

  • Gill Group added two offices in Michigan and one in Wisconsin, further expanding our staff of architects and engineers.
  • Gill Group and Greystone formed a Joint Venture to provide a full line of consulting and development services for Rental Assistance Demonstration (RAD) transactions. Gill Group and Greystone are utilizing each of our areas of expertise in a collaborative effort, with a mission to partner with PHAs across the nation in preserving and expanding the affordable housing inventory under the HUD RAD program. Our team fully understands the intricacies of the real estate and affordable housing industries, and our services are provided by professionals who are fully immersed in LIHTC executions, construction management, project accounting, regulatory compliance, real estate transactions, and opportunity development. We sit on national and state boards and have in-depth knowledge of industry trends and best practices. As a developer team, we operate as three individual entities, each with a unique set of previous transaction experiences that add value to the project at hand. As a collaborative unit, we draw upon those experiences to bring to the table creativity, fresh ideas and unsurpassable development advisory services.
  • Gill Group’s subsidiary, National Title & Escrow, added two new offices in Missouri and Arkansas, further expanding our ability to service our nationwide base of customers.

Events (2014)

  • Gill Group attended 40+ meetings and conferences throughout the United States in 2014.

GROWTH (2014 - Highlights):

  • Gill Group began the process of working with owners of affordable housing to develop a web-based program that will work hand-in-hand with our services. It will give the users of our appraisals, market studies, capital needs assessments and many other services easy access and real time usage.
  • Gill Group added 2 offices with appraisers, market analysts, engineers and architects.
    • Within the offices are 11 architects, one MAI appraiser, one general certified appraiser, four market analysts and 12 additional support staff. 

  Gill Group has published the following:

  • New York Real Estate Journal - How can low-income housing facilities translate into high profits?
  • New York Real Estate Journal - Up, up and away: Home mortgage interest rates and gasoline prices continue ascending.
  • Tax Credit Advisor - Boston MSA Market Snapshot
  • Tax Credit Advisor - Seattle MSA Market Snapshot
  • Northeast Industrial Development Resource Guide - What Appraisers Know About Investing.
  • Affordable Housing Finance – Urban and Rural Market Studies.
  • Tax Credit Advisor – LIHTC Appraisals 101
  • Affordable Housing Finance – Five Ways to Optimize a Market Study

Cash Gill, MAI has had the opportunity to speak on the following topics:

  • (Indianapolis, IN) National Council of Affordable Housing Market Analysts - Maximize Your Market: Understanding the Methodology Behind Market Studies.
  • (Reno, NV) Nevada Council of Affordable and Rural Housing - Don't Get Caught in the Red. New Guidelines for Audits and Inspections.
  • (Washington, DC) The Institute for Professional and Executive Development - Nonrecourse HUD Deals - So You Closed Your Nonrecourse HUD Deal. Now What? And Is It Really Nonrecourse?
  • (Arlington, VA) Council for Affordable and Rural Housing - Property Valuation: The Correct Way to Value Properties.
  • (New Orleans, LA) National Council of Affordable Housing Market Analysts - Affordable Housing Site Analysis
  • (Las Vegas, NV) Nevada Council of Affordable and Rural Housing - Auditing and Accounting Guidelines for Section 42 Low Income Housing Tax Credits.
  • (Washington, DC) Council for Affordable and Rural Housing - Rural Development Appraisals and Market Studies
  • (Miami, FL) Council for Affordable and Rural Housing - The Equity Market - Impact on Rural Housing
  • (Washington, DC) Council for Affordable and Rural Housing - How to Foster Affordable Green and Rural Housing Needs Assessments
  • (Indianapolis, IN) Affordable Housing Association of Indiana - Market Analysis – Best Ways Use Market Studies to Ensure Application Points
  • (Portland, ME) Enterprise Buyer/Seller Conference for RRH 515 Properties – Valuing the Product. What Is My Development Worth?
  • (Washington, DC) National Housing and Rehabilitation Association – Financing and Underwriting Special Needs Housing.
  • (Atlanta, GA) National Council of State Housing Agencies – Comprehensive Market Analysis.
  • (Chicago, IL) AHF Live – Strategies for Rural Deals.
  • (Dallas, TX) Crittenden Multifamily – Financing Special Use Properties.
  • (Washington, DC) Council for Affordable Rural Housing – Rural Housing Preservation
  • (Denver, CO) National Council of State Housing Agencies – Rural Housing Strategies
  • (Denver, CO) National Council of State Housing Agencies – Y15: Preservation and Disposition Seminar
  • (San Antonio, TX) Rural Rental Housing Association – LIHTC Legislative Update
  • (Key Largo, FL) Council for Affordable Rural Housing – How National Appraisal Practices Impact USDA Assisted Properties
  • (San Francisco, CA) National Council of State Housing Agencies – Changes and Challenges in Rural Housing Development
  • (Chicago, IL) AHF Live – Preservation of Older LIHTC Deals
  • (Franklin, TN) Regional Affordable Housing and RAD Training – Valuation, Feasibility and Capital Needs Assessments
  • (Columbus, OH) Council for Rural Housing & Development of Ohio – Rural Housing Market Research
  •  (South Bend, IN) Great Lakes Capital Fund’s University of Affordable Housing – Valuation Risks Using Financing for RAD Deals
  • (Chicago, IL) National Council of State Housing Agencies – Rural Development Opportunities
  • (Orlando, FL) National Association of Housing and Redevelopment Officials – Affordable Housing Appraisals, Market Studies, Rent Comparability Studies and Rent Reasonableness Studies
  • (Alexandria, LA) Regional Affordable Housing and RAD Training – Valuation, Feasibility and Capital Needs Assessments
  • (Ft. Lauderdale, FL) Southeastern Affordable Housing Management Association (SAHMA) – Rent Comparability Studies 101
  • (Indianapolis, IN) Midwest Buyer/Seller Conference – CNAs and Appraisals
  • (Chicago, IL) AHF Live – Acquisition Challenges and Opportunities (2014)
  • (St. Pete Beach, FL) CARH – Preservation Challenges and Opportunities
  • (Nashville, TN) TAHRA – Appraisals, Market Studies, Rent Comparability Studies and Rent Reasonableness Studies for LIHTC and RAD Transactions
  • (Los Angeles, CA) NCSHA – Successful Development in Challenging Markets
  • (Chicago, IL) AHF Live – Acquisition Challenges and Opportunities
  • (Seattle, WA) NCSHA – Rural and Native American Development Strategies
  • (French Lick, IN) AHAIN – Appraisals and CNAs
  • (French Lick, IN) AHAIN – Pulling it All Together
  • (Chicago, IL) AHF Live – Preservation of Older LIHTC Deals
  • (Albuquerque, NM) MFA – Appraisals 101 (personal training for HFA staff)
  • (Atlanta, GA) NCSHA – Using Market Studies to Inform Site Selection (upcoming in June)
*as seen on housingonline.com

**as seen on seniorhousingnews.com

 

 

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