By Maura Webber Sadovi

After slowing to a crawl following the recession, the pace of apartment construction is coming back in downtown Los Angeles.

In downtown Los Angeles a number of new projects are getting under way following a pause that ended last year, according to Carol Schatz, president of the Central City Association of Los Angeles, an organization that advocates for Los Angeless businesses. (The Journal wrote last month about the downtown L.A. office market, which is also rebounding, albeit slowly.)

Some 1,526 new apartments and condos are under construction in downtown L.A. Thats still far below the 8,224 units under way at the peak of the market in 2007, but Ms. Schatz says its a positive sign that an increasing number of developers are once again confident enough to build. Its anyones guess when we get back to the ferocity we experienced before the crash, but its good news, Ms. Schatz says.

Most of the units being built downtown are rentals, which is not surprising given the still troubled for-sale market. Prices for condos and town homes in L.A. have yet to stabilize. The median price of condos and town homes in Los Angeles County fell 8.4% in the first quarter to $214,458 from $234,185 in the year-earlier period, according to a sample of sales by the California Association of Realtors.

By contrast, apartment rents have been rising since last year and the first quarter average asking rent stood at $1,425, just below the recent annual peak of $1,464 hit in 2008, according to Reis Inc, a real-estate research firm.

Related Cos., one of the developers whose delivery pipeline is gearing back up in the Los Angeles area, says only select locations like the tony beachfront city of Santa Monica have recovered enough to warrant condos. L.A.s rental market is strong, says William Witte, president of Related California. Except for a few niche locations, the condo market is still a work in progress.

Later this year Related will begin building a 271-unit high-end rental apartment in downtown L.A. near the new Broad art museum being built on Grand Avenue. Rents in most units are expected to start at $2,200 a month. In January, Related began building a 158-unit luxury condominium project in Santa Monica, where the asking prices will start at $800,000.

But some analysts are keeping a wary eye on the uptick in construction because it is coming even as L.A.s apartment markets recovery is relatively new.

For landlords to have pricing power they need, one rule of thumb is that rents should rise about 5% annually for at least 12 to 18 months before new supply is added, says Hessam Nadji, managing director of research and advisory services at Marcus & Millichap Real Estate Investment Services.

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Apartment Construction Stars Again in Downtown L.A.

The developer of the $34 million 16 Park housing project said it will begin rebuilding as soon as possible after a building was destroyed by fire Friday night.

The Indianapolis Housing Agency is developing 16 Park, an 11-building project that was set to open in October along 16th Street between Central and College avenues. The blaze engulfed a four-story, 28-unit apartment building due to open this fall. Four occupied buildings in the complex were not damaged.

IHA Executive Director Bud Myers and Bruce Baird, its director of strategic planning and development, watched the building burn.

It was heartbreaking, Baird said. We put our heart and soul into the redevelopment of Caravelle Commons, so it was discouraging.

Caravelle Commons was a 65-unit, low-income housing property built in 1975. The seven-acre property had become a magnet for crime, with dead-end streets and fenced-in apartment homes surrounding crowded parking lots. But the Indianapolis Housing Agency was betting the new project would jump-start interest in the area.

IHA will begin the process of rebuilding as soon as the Indianapolis Fire Department finishes its investigation and gives the agency control of the site, Baird said.

IFD Lt. Larry Tracy said Monday morning that the probe is ongoing; he was unsure how long it might last. IFD estimated damage to the building at $3.5 million.

The destroyed building was insured, Baird said.

Four of 16 Parks 11 buildings are complete and occupied. When finished, the entire project will consist of 155 housing units.

Baird said he has no idea when the project might be completed.

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16 Park developer to rebuild after 'heartbreaking' fire

Published: Monday, June 18, 2012 at 6:45 a.m. Last Modified: Monday, June 18, 2012 at 6:45 a.m.

BARTOW -- The city has halted construction on a garage apartment on Bartow's south side because it's nearly 5 feet taller than the zoning codes allow.

Now the owner, Darlene Patrick, is seeking a second variance to allow for the additional height, and the Zoning Board of Adjustment has to decide what to do about it.

Patrick already had secured one variance from the board in February to expand the garage behind her house at 1265 Lightsey Ave. The board gave her a 4-foot variance, which allowed her to build the garage to 34 feet in height, according to city records.

But once construction got under way, Planning Director Bob Wiegers told the city's building inspectors that something didn't look right.

"It hadn't gotten far enough along where we were called to do a framing inspection on the structure," Building Official Gregg Lamb told the board during a recent meeting, "But Bob had mentioned the height, so we went out and measured, and it was 38.8 feet."

Lamb said he also recognized the construction didn't reflect the plans the city had on file for the project.

"It went from a loft on one end to a loft on both ends with a walkway in between. The plans didn't reflect that."

Patrick told members of the board last month that changes in the design created the additional height.

Wiegers said none of Patrick's neighbors has voiced concerns about the project.

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Bartow halts work on too-tall building

Investigators are trying to determine what caused a three-alarm fire that destroyed a newly built apartment apartment building downtown Friday night.

Indianapolis Fire Capt. Rita Burris said investigators remained on the scene Saturday and had not determined the cause or the origin of the blaze that caused $3.5 million in damage and sent black smoke wafting into the sky.

The fire destroyed a four-story, 60-apartment building under construction in the 16 Park development by the Indianapolis Housing Agency. The building was due to open this fall.

16 Park, which was expected to cost a total of $34 million, is replacing the former Caravelle Commons housing development north of East 16th Street between Central and College avenues.

Lt. Larry Tracy says one firefighter was injured and was treated for a possible broken wrist.

Caravelle Commons was a 65-unit, low-income-housing property built in 1975. The seven-acre property had become a magnet for crime, with dead-end streets and fenced-in apartment homes surrounding crowded parking lots. But the Indianapolis Housing Agency was betting the new project would jump-start more interest in the area.

We really think this is a transformational development thats really going to change that part of the neighborhood and that part of the city, said Bruce Baird, IHAs director of strategic planning and development, told IBJ last year.

IHA bought the complex in March 2009 from the Near North Development Corp., which took over the Caravelle not-for-profit complex in 2003. Near North stepped in to refinance, renovate and stabilize the property with an eye toward eventually selling it to a more appropriate owner.

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Cause, origin of apartment building fire undetermined

New construction at 1265 S. Lightsey Ave., Bartow, was stopped by code enforcement after the garage apartment was found to be nearly five feet too high.

BARTOW | The city has halted construction on a garage apartment on Bartow's south side because it's nearly 5 feet taller than the zoning codes allow.

Now the owner, Darlene Patrick, is seeking a second variance to allow for the additional height, and the Zoning Board of Adjustment has to decide what to do about it.

Patrick already had secured one variance from the board in February to expand the garage behind her house at 1265 Lightsey Ave. The board gave her a 4-foot variance, which allowed her to build the garage to 34 feet in height, according to city records.

But once construction got under way, Planning Director Bob Wiegers told the city's building inspectors that something didn't look right.

"It hadn't gotten far enough along where we were called to do a framing inspection on the structure," Building Official Gregg Lamb told the board during a recent meeting, "but Bob had mentioned the height, so we went out and measured, and it was 38.8 feet."

Lamb said he also recognized the construction didn't reflect the plans the city had on file for the project.

"It went from a loft on one end to a loft on both ends with a walkway in between. The plans didn't reflect that."

Patrick told members of the board last month that changes in the design created the additional height.

Wiegers said none of Patrick's neighbors has voiced concerns about the project.

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City Halts Work on Too-Tall Building

INDIANAPOLIS -

A large fire engulfed an apartment building under construction on the near north side Friday night.

The fire broke out around 9 p.m. on the northeast corner of East 16th Street and Broadway. Large flames could be seen from a camera atop the television tower in front of the WTHR studios. Smoke from the fire could be seen from several counties around Indianapolis, viewers reported.

The fire destroyed two apartment buildings under construction.

"We have a four-story wood frame structure, actually two of them, in that location," said Joe Langybartels, a manager on the construction project who was at the scene.

Langybartelstold Eyewitness News he didn't believe there was anything on the construction site that could have caused the fire.

"Not right off hand, no, 'cause everything...all the sprinkler system's poly, the drain lines are poly, the wires were being pulled, there's no power," he said.

Neighbors say the fire started small, then suddenly took off.

"I dialed 911, I said, 'It's a fire!'," said Regina Morris. "Next thing you know, all of them just went to blaze. I'm on the phone with 911, I'm telling them, 'They need to get here! Y'all need to get here!' They said, 'Where you at ma'am?' I said, 'I'm at 16th and Park.' I said 'It's a small fire.' Next thing you know, everything is popping and it went to blaze."

Construction materials across the street also ignited and a nearby church reportedly caught fire as well. Propane tanks at the scene also were seen exploding.

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Fire engulfs north side apartment construction site

Patrick Kennedy, executive director with Housing Assistance Corporation, talks about the new Oak Haven Apartments a senior community located off of Old Spartanburg Road.

Oak Haven apartment building on Old Spartanburg Road is nearing completion, and interest in the units for mostly low-income senior citizens and the disabled has been so strong that 24 more units will be under construction in the fall.

The 56-unit building cost about $6.5 million, and the site manager expects leases to be signed starting July 1. Already, about 32 of the units are committed to future tenants.

Executive Director Patrick Kennedy said construction on 24 more units will begin in the fall, for a total of 80 apartments.

The building is the biggest development for Housing Assistance Corp. and will become home to mostly low-income senior citizens.

"It's really a great location for seniors," Kennedy said.

On Wednesday, site managers with Partnership Property Management of Greensboro held an open house and toured local human service agencies. A grand opening for the apartments will be planned for mid-August. Prospective tenant Phyllis Strickland filled out paperwork Wednesday in a common room of the new building. Strickland has been at Hendersonville Health and Rehabilitation in Flat Rock for the past three years. She's lived in some form of nursing home for the past eight, after her leg was amputated.

"They're more like mainstream apartments than traditional handicap places," she said of Oak Haven. "I don't feel like I'm being put into an ugly, utilitarian place. These are beautiful."

Strickland, who is 65, fits the niche for the complex. Rooms are built to standards set by the Americans with Disabilities Act. Cabinets are lower. There are safety alarms in the bedroom and bathroom. Strickland said that without such accessibility, she wouldn't be able to get around. She toured one of the apartments, trying out every light switch and reaching for every plug.

Strickland said the move to living on her own is a scary, but exciting, prospect.

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Apartments for low-income seniors, disabled near completion

Home sales up. Inventories down. Prices rising in many cities. New houses being built at the fastest pace in years. Interest rates hovering at historic lows. A vibrant rental market.

A growing body of data in recent months has suggested that better days are on the horizon for the nations battered housing market, though it remains clear that a turnaround wont come quickly.

The latest harbinger of (mostly) encouraging news: the annual State of the Nations Housing report released Thursday by Harvard Universitys Joint Center for Housing Studies, which details more signs of revival.

While still in the early innings of a housing recovery, rental markets have turned the corner, home sales are strengthening, and a floor is beginning to form under home prices, Eric S. Belsky, the centers managing director, said in a statement accompanying the report.

The Harvard report, released annually since 1988, assesses nearly every aspect of the countrys housing and rental markets. The findings this year offer glimmers of optimism that have been largely absent in recent years. Among them: an increase in sales of existing homes, fewer homes lingering on the market, an uptick in residential construction, signs of stabilizing prices in many areas, falling rental vacancy rates and low interest rates that make purchasing more affordable.

In addition, a new National Housing Survey released by mortgage giant Fannie Mae shows that despite the turmoil of recent years, most Americans still have strong aspirations to own a home, though fewer people than in the past see it as a lucrative investment.

In spite of the impact of the housing crisis on home values and homeownership rates across the country, Americans by and large still hope to become homeowners, Doug Duncan, Fannie Maes chief economist, said in a statement accompanying the survey results. Some may not be financially positioned to own a home in the near future, but Americans may begin to revisit that aspiration as employment and household balance sheets improve over the coming years.

Of course, the slivers of heartening news about the nations housing situation are still outweighed by troubles, and those who talk of a future recovery also acknowledge the uncertainty of the present.

The Harvard report notes that more than 2 million homes were in some stage of foreclosure during the early part of 2012, with more facing a similar fate. The number of borrowers delinquent on their mortgages has fallen, but its still far higher than historical averages.

In addition, more than 11 million homeowners owe more than their houses are worth, and the total amount of that negative equity has stayed at about $700 billion. As banks have become more cautious, lending to only the most creditworthy borrowers, many would-be buyers are having trouble getting home loans. The lackluster job market adds to those difficulties and also makes it harder for many existing homeowners to simply make ends meet.

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Housing market shows hints of recovery, but economic troubles remain

Posted: 2:35 pm Thu, June 14, 2012 By ChrisNewmarker Tags: jobs, Mark Phillips, Minnesota Department of Employment and Economic Development, Steve Hine, unemployment

Construction crews work Monday on the future Whole Foods at the site of the former Jaguar car dealership at 222 Hennepin Ave. in Minneapolis. Construction over the past 12 months has grown at the fastest rate among industrial sectors in Minnesota. (File photo: Bill Klotz)

Sector notched May gains while Minnesota lost jobs

An apartment building boom and other projects have made the construction industry one of the states few bright spots in an otherwise disappointing employment situation.

Minnesota gained 800 construction jobs in May and 4,200 over the past 12 months, a 4.5 percent increase over the past year that far outpaces the 0.4 percent growth in construction jobs nationwide over the same period, the state Department of Employment and economic development reported Thursday. All numbers are subject to revision.

The overall number of Minnesota jobs meanwhile shrunk by 900 in May, with the states unemployment rate remaining unchanged at 5.6 percent. The number of Minnesota jobs is up 22,600, or 0.8 percent, over the past 12 months, lagging behind the national growth rate of 1.4 percent.

The past three months weve really stagnated. Its pretty clear weve hit a soft spot in line with what were observing nationally, said Steve Hine, research director of DEEDs Labor Market Information Office.

Hine, though, pointed out that construction is presently growing jobs faster than any other sector of Minnesotas economy. Specialty trade contractors, who make up two-thirds of the jobs in the state, have seen a 10.5 percent increase in positions over the past 12 months.

Residential building construction jobs are up 5.5 percent aided by the 13,829 apartment units that are proposed or in development in Minneapolis-St. Paul.

Despite the gain over the past year, construction still has a long way to go to gain back the roughly 50,000 jobs the sector lost during the recession.

Excerpt from:
In Minnesota, construction emerges as bright spot for jobs (update)

For the last few years, Rantoul Street has been the road of choice for developers looking to put up new buildings in Beverly.

Now, it's Cabot Street's turn.

A developer has filed plans with the city to build a three-story apartment building in a parking lot at 130 Cabot St., next to the Siam Delight restaurant and Sam's Cleaners.

If the plan is approved, it would be the first significant new construction in the main section of downtown in years.

"We think the downtown is moving toward the Beverly-Salem bridge a little more," said Jeff Holloran, the developer who plans to buy the property if the project is approved. "We wanted to bridge the gap."

The proposal calls for 13 apartments, with space for two retail stores on the first floor. Gin Wallace, executive director of Beverly Main Streets, said the plan meshes with her organization's efforts to bring both more residents and retail to the downtown.

"Most of the residential stuff is happening on Rantoul, but we're really excited about (this plan) because it fits right into our vision for the downtown with residential above and retail below," Wallace said. "The more people you have living downtown, the more people you have for the businesses."

The parking lot at 130 Cabot St., at the corner of Vestry Street, has been owned by Jay Levy since 1995. He has rented the lot to various businesses over the years, including the Registry of Motor Vehicles, but said the lot has essentially been a "hole" at that end of Cabot Street.

Levy, who has owned an office/retail building across the street since 1978, said the combination of an apartment building and retail stores should provide a boost for the area.

"This end of Cabot Street is kind of a neglected end of Cabot Street," he said. "Once you get past City Hall, the retail kind of falls off. If they put up a building and there's some retail, it will extend the retail on Cabot Street and help some of the other retail in this area."

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Cabot Street housing planned