Woodlake Apartments Owner Files $1.5 Million Loan
Woodlake LP, the owner of the Woodlake Apartments at 3590 New Tchulahoma Road in Oakhaven, has filed a $1.5 million loan on the property.
The company filed the multifamily deed of trust, absolute assignment of leases and rents, and security agreement (including fixture filing) Oct. 31 through Financial Federal Savings Bank.
Built in 1972, the Class C multifamily property includes 122 apartments and 110,288 square feet on 7.15 acres on the west side of New Tchulahoma Road, southeast of the intersection of Winchester and Tchulahoma roads near Memphis International Airport.
The Shelby County Assessor of Property’s 2012 appraisal is $1.6 million.
Woodlake acquired the property in a 1990 quitclaim deed from Robert F. Fogelman.
Jerome B. Makowsky signed the trust deed as vice president of JAN Realty Inc., a general partner of Woodlake.
Source: The Daily News Online & Chandler Reports
– Daily News staff
Delta Takes $45 Million Revenue Hit From Sandy
Delta Air Lines Inc. estimated Friday, Nov. 2, that it took a $45 million hit to its revenues for the month of October as a result of the 3,500 flights it canceled across its system because of Hurricane Sandy.
Delta, which operates one of its seven U.S. hubs at Memphis International Airport, also estimated its October profit was reduced by approximately $20 million because of the storm.
Delta executives said they expect to see some impact from the storm on November figures but expect the impact to be less.
Delta operations at LaGuardia Airport in New York were at 80 percent of the normal schedule on Thursday with the company saying it expected to be back on a full schedule Friday.
– Bill Dries
MAA's Net Income Rises in Third Quarter
Memphis-based MAA reported a third quarter net income of $30.9 million, as compared to $13.8 million for the quarter during the third quarter of 2011.
Net income results for the quarter ended Sept. 30 included $16.1 million related to gains on the sale of real estate, while net income results for the quarter ended Sept. 30, 2011, included $4.9 million related to gains on the sale of real estate.
Funds from operations for the apartment-only real estate investment trust were $48.2 million for the quarter, as compared to $39.2 million for the same quarter a year ago. As a result of the strong third quarter performance, management has raised FFO guidance for the year to a new range of $4.46 to $4.56 per share.
Third quarter same-store net operating income grew 6.7 percent as compared to the prior year. Physical occupancy for the same store portfolio averaged 96.1 percent for the quarter, while average effective rent grew 5.2 percent over the same period in the prior year. Resident turnover remained historically low at 56.6 percent on a trailing 12-month basis.
MAA acquired four new communities during third quarter for a total investment of $218 million, and sold five communities for $47.3 million in total proceeds. Construction and lease-up continue on four communities under development.
– Sarah Baker
LEDIC Management Group Opens Phoenix Office
Memphis-based LEDIC Management Group, an affiliate of Hunt Cos. Inc., has secured seven new multifamily management contracts in Arizona totaling 1,213 units.
The properties are located in Mesa, Peoria, Glendale and Camp Verde. The communities are: The Village at Sun Valley, The Groves Apartments, Lake Pleasant Village, Desert Eagles Estates, Steeplechase, Parkway Apartments and Rancho Del Sol Apartments.
The expansion further into the western U.S. means that LEDIC now covers more than half of the nation’s Sunbelt population, the third-party real estate management firm’s CEO Pierce Ledbetter said in a written statement. LEDIC currently manages more than 33,000 multifamily units in more than 16 states.
It will also allow LEDIC to open and staff a new regional office in the Phoenix area.
– Sarah Baker
Fogelman Partnership Buys Houston Apartments
A joint venture with Memphis-based Fogelman Venture Partners and New York-based DRA Advisors LLC recently acquired two apartment communities in Houston.
Gramercy Park Apartments is a 384-unit apartment complex in Houston’s Westchase submarket. Built in 1998, its floor plans range from 660 square feet to 1,268 square feet with rental rates from $737 to $1,307 per month. Gramercy Park was 95 percent occupied at the time of the acquisition.
The Villages of Briar Forest is 240-unit apartment community located along the “Energy Corridor” in West Houston. Built in 1999, its floor plans range from 690 square feet to 1,256 square feet with rental rates from $814 to $1,384 per month. The Villages of Briar Forest was 96 percent occupied at the time of the acquisition.
Rick Fogelman, principal of Fogelman Venture Partners, said the Houston apartment market is experiencing rapid growth in rental rates and occupancies, largely a result of Houston adding nearly 100,000 new jobs in the past 12 months – the second highest total in the country. This firm will continue to seek additional acquisition opportunities in the Houston area.
Fogelman Management Group will manage the newly acquired property. Founded in 1963, the firm presently manages 60 apartment communities totaling more than 18,000 apartment homes in the Southeast, Southwest and Midwest.
– Sarah Baker
Orpheum Theatre Holds 34th Annual Auction
The Orpheum Theatre Memphis will host its 34th annual auction on Saturday, Nov. 10, at 6:30 p.m.
The event will include cocktails, a gourmet buffet and a live and silent auction with more than $450,000 in merchandise. It’s The Orpheum’s largest fundraising effort, and proceeds will go to the new Performing Arts and Leadership Centre.
The facility will allow The Orpheum to grow its current list of 19 performing arts programs to more than 30, increasing participation from 62,000 students and families to more than 100,000 annually.
Highlights for this year’s auction include a diverse collection of art, fine jewelry, antiques, certificates to Memphis’ best restaurants and exotic vacation packages. Guests also can enter for the chance to win a 40-inch Samsung LCD high definition TV, Orpheum Broadway season tickets, and more.
The auction is sponsored in part by Sedgwick CMS. Tickets are $100 per person and are available online and at The Orpheum Theatre box office, 525-3000.
– Andy Meek
US Factory Orders Rise 4.8 Percent in September
U.S. companies boosted their orders for manufactured goods by the largest amount in 18 months in September, but companies remained cautious in ordering goods that signal plans to expand and modernize.
Factory orders rose 4.8 percent in September compared to August, a month when orders had fallen 5.1 percent, the Commerce Department said Friday.
The September gain was the biggest since March 2011 and was driven by a surge in demand for commercial aircraft, a volatile category which had seen orders plunge in August.
Demand for core capital goods, viewed as a good proxy for business investment plans, edged up a slight 0.2 percent in September following a 0.3 percent rise in August. The two modest gains followed two months of huge declines as business investment remains weak.
Businesses have grown more cautious for a number of reasons. Many are concerned about the economic outlook overseas. Europe’s financial crisis has pushed many countries in the region into recession. That has cut into U.S. exports and corporate profits. Growth has also slowed in China, Brazil and other big developing nations which are major markets for American exports.
Companies are also hesitant to commit the money to major expansion and modernization projects without knowing whether large tax increases and big government spending cuts will take effect in January should Congress fail to reach a budget deal to avert them.
– The Associated Press