A lot has been happening. On the acquisitions side we have activity for new deals in almost every market we are working in. Kansas city, El Paso, Durham, Omaha, Albqr, even NYC city. The acquisitions group has really been turning up opportunities under there new sales manager and motivational guide, Jon Colton. The call volume has increased significantly (by many multiples greater) and the results are starting to show in LOIs and A/S. Good job guys keep it up!
The Portfolio division signed NWJ cos largest deal to date with the takeover of Wilshire Enterprises a publicly traded company. This deal will add 1000 units to the NWJ/Signature portfolio plus give us a few retail/office properties which we intend to sell in the near future. This deal has opened up conversations with a few other companies and it looks like we are now getting traction in this division and more deals to come.
Lender direct division is really seeing a lot of activity; John Stanton and John Coffen have the job of flying around the country seeing failed apartment projects. We have been putting our bids in and are getting close on a few deals. Steve Wissak is also working his connections in the NY capital markets to take advantage of the fire sales going on of debt. We are currently close to a deal that could eventually add 3000 units to the portfolio, at a price that is $60M less than the price paid 18 months ago. I will update you further on this deal as obviously it will affect everyone in the organization.
On the operations side everything keeps getting better and better. I am delighted when I read the economic news and see things getting worse and worse in the housing market because the longer it lasts the greater impact it will have on the national opinion renting or buying. The past 5 yrs everyone wanted to own but my feeling is that going forward for a good part of the next generation residents will think twice about jumping into home ownership. That means longer term renters, more renters, and happy residents. Renting really is the most economical way for a young family, not to mention a single person, to live.
We are already seeing the effects. Our 100% occupancy club already includes Richmond, Baltimore, and Kansas City-Plaza area. The other markets seem to be moving strongly towards that goal and I expect by next months update that almost all our markets will be a part of the 100% occupancy club. Great job everyone, especially all the leasing agents under Ian Fraenkel, You are making it happen.
July 1st marked a milestone for us with the start of our Signature Community management group. We now manage almost 3000 apartment units under one organization. I welcome aboard Nick Moos and his team in Kansas city and Indy. We are creating a world class management organization.
The Stabilization group under Mike Greenzang and Mike Deitric has made huge strides in turning around our projects. Park Greenwood was completed in record breaking time and now Waldo is at the final stages of its transformation. Great job everyone involved in these transactions. What we need to realize is that stabilization is not just about construction its leasing, managing, marketing and asset management all accelerated into a very short period of time. Thanks to everyone involved in these transformations.
On the finance side we still continue to receive commitments on financing and expect to refinance Waldo once we hit our 90% occupancy target. The financing has definitely become more difficult but due to our management experience lenders are feeling comfortable continuing to lend on our projects.
On the equity investor front we continue to attract a strong investor base due to the strong returns we have provided on Park Greenwood and the anticipated returns on Waldo and the new projects. Investors are driven to our deals because of our track record and the great things that everyone is doing with the Signature brand, keep up the good work.
The next few years should be incredible growth opportunities, thanks to everyone for making this happen.
-Nick
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