CPN 2008 GreenBook

Giants Equity Residential C hicago-based Equity Residential, an S&P 500 company, Angeles and Inland Empire—and Washington, D.C., at a 7 percent yield. The company expects to proceed with selective acquires, develops and opportunities in its development manages apartment properpipeline through 2008, exploring ties in top U.S. growth markets. The joint ventures that can use thirdcompany owns or has investments party capital as a means of leveragin more than 564 properties totaling ing their development dollars. Its almost 150,000 units across condominium-conversion business 23 states and Washington, D.C. remains a part of its long-term stratIt is continuing the long-term egy, though the company expects to execution of a change in strategy reduce such investments in 2008 as to concentrate its investments in the market’s continued evolution specific metropolitan areas, exitpresents opportunities. ing non-core markets and increasSAM ZELL The company has recently ing investment in its core markets. Chairman DAVID NEITHERCUT upgraded lighting efficiency in During 2007, for example, the Equity Residential President & CEO many of its properties, is completEquity Residential company sold 73 properties ing preventive maintenance on encompassing more than 21,500 apartment units in such markets as Houston, Milwaukee, Minneapolis and Nashville for HVAC systems and duct-sealing programs in its California almost $2 billion and reinvested the proceeds into assets in New properties and is testing satellite-controlled irrigation technology in Southern CaliYork City, Seattle, California fornia. It has also impleand Florida. industry is being transformed by technology. mented xeriscaping projIn 2007, Equity ResidenWe have fundamentally changed the way that we do ects in Arizona, Califortial broke ground on $573 nia and Washington and million worth of assets and business. Firms that are not willing to embrace this installed white roofs at a stabilized a property in two technology will pay a price.” David Neithercut, Equity Residential number of properties. California markets—Los “The Fannie Mae F annie Mae financed $60 billion in multi-family rental housing in 2007, setting a sector record for annual production. Its financing solutions include debt financing through lender partners, investment in low-income-housing tax credits through syndication partners and multi-family bond purchases. Fannie Mae is also celebrating the 20th anniversary of its Delegated Underwriting and Servicing program. DUS lenders have delivered more than $30 billion of the $60 billion that the company invested in multi-family in 2007. Fannie Mae last year also committed $1.1 billion PHIL WEBER in equity investments that qualify for Senior Vice President low-income-housing tax credits. Fannie Mae Multifamily About 88 percent of the multifamily units financed by Fannie Mae in 2007 are affordable to families that earn their respective communities’ median income or less. Fannie Mae also focused on the renovation needs of the nation’s aging affordable housing stock by making Community Investments Mezzanine-Moderate Rehabilitation financing available in 2007. The product provides financing for multiThe 2008 Multi-Family Greenbook family properties that have moderate to substantial rehabilitation needs by combining a permanent DUS loan with a mezzanine loan. Fannie Mae financed $180 million in mezzanine loans in 2007, enabling the company to invest an additional $1.7 billion in DUS permanent loans. In April 2008, it boosted New Orleans’ rebuilding effort by investing an additional $49 million in housing developments throughout the city. It has provided $40 billion in financing for housing and redevelopment in the Gulf region since Hurricane Katrina struck in 2005. At press time, the Federal Reserve System, in response to the financial crisis threatening the housRICHARD LAWCH ing market, was considering ways to Senior Vice President of broaden its regulatory scope over Community Investments Fannie Mae Fannie Mae operations. Fannie Mae suffered a second-quarter net loss of $2.3 billion, up from its first-quarter loss of $2.2 billion. Net investment losses totaled $883 million, including $507 million in securities impairments. But its multi-family business line grew by 5.9 percent from the first quarter to $163 billion. Commercial Property News 11

Table of Contents Feed for the Digital Edition of CPN 2008 GreenBook

CPN 2008 Greenbook Table of Contents Industry Update Green Update Giants Owners, Managers & Developers REITs Finance Firms Seniors Housing Providers Service Firms Software Providers Activity Index Alphabetical Master Listings

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