Business Journal

JANUARY 27, 2012 THE WEEKLY BUSINESS PAPER OF GREATER OMAHA, LINCOLN AND COUNCIL BLUFFS VOL. 38 NO. 4

Midlands

People see advantages to maintenance free apartment, town home living

Multifamily developments are gaining in appeal in the Omaha area. Investors are opening up back into real estate and commercial investing, said Barb Terry, vice president of development for Robert Hancock & Co. and Alchemy Development. Financing has become available through HUDs, banks and investors. Construction costs are down and the housing supply has changed, Lenhoff Terry said. The number of new units being built in the three county area has increased in the last couple of years, from 284 in 2009, 572 in 2010 to 672 from November 2011 to date. Were seeing an increase but its not like were overbuilding either, said Randy Lenhoff, president and CEO of Seldin Co. Our growth has been steady and can absorb between 1,000 to 1,200 units per year. Its been underdeveloped if anything for the last three years. The recession justified the slowdown and growth has been stunted, Lenhoff said. Getting financing for a single family home can be more difficult to obtain, and houses do not appreciate year to year as they once did. The way financing is set up is another big reason why were seeing a lot of activities in town homes and villas than condos, said Shawn McGuire, sales manager for Celebrity Homes in Omaha. When a company builds a new condo facility, a certain percentage has to be sold, and a percentage is owned by investors. A buyer may not be able to get a conventional or FHA loan on a unit, McGuire said. The Omaha economy has followed the national trend of a recession, but the slowdown is not as severe as in other parts of the country. There are a lot of out of town investors, said Angela Lagasse, vice president and direc-

by Becky McCarville

These are for people who like the idea of maintenance free living, McGuire said. Were not taking away from the single family home market. Apartment living appeals to students, young professionals, those saving for a house

Barb Terry, vice president of development for Robert Hancock & Co. and Alchemy Development, at Pinhook Flats. tor of residential property management for The and maintenance can be drawbacks for those Lund Co. The reason is simple they see wanting flexibility or no maintenance. the Omaha economy doing better than other Some elderly and near elderly are movplaces in the country. Omaha is consistently ing towards renting, Lenhoff said. Shoveling stable and coupled with growth, investors see sidewalks or mowing the lawn ties a person to the upside in the risk. a home, and many in that age group want to The notion of home ownership as a signi- travel and leave for extended periods of time. fier of the American dream is changing as the Renting often includes more amenities to economy continues to impact people. residents, such as swimming, an on-site gym, The philosophy of generations has access to a common area, attached garages and changed, Terry said. It used to be home washer-dryer hookups. ownership was a measure of success. That has Celebrity Homes developments include changed, and there are other ways to measure villas and town homes as part of the residential success. community, all built by the same builder, with With the job market, people are changing neighborhood association requirements on the jobs more frequently and go where the jobs are, exteriors to maintain the streetscape, adding to Terry said, and may need more flexible living property values. arrangements. A villa is a detached unit in a town home More people are seeing the benefit of rent- community, and town homes are connected, ing an apartment or having a town home versus each style allowing ownership of the yard and a single-family home. Property taxes, insurance surroundings.

McGuire Lagasse down payment, divorcees and empty nesters looking to downsize. With 88,000 apartment homes in the Omaha area right now, people are seeing the advantages to apartment living. Disadvantages include higher maintenance costs for the owner with laws that require licensed technicians to fix even minor problems, Lagasse said. Currently 63 percent of homes are owner occupied and 37 percent rental, compared with 67 percent owned and 33 percent rented in 2007. There is a national trend toward look at renting as a more viable option than it used to be, longer term, Lenhoff said. It gets back to the question is a house really an investment. In certain instances, owning makes sense. You have to weigh what you have in life and what your needs really are.
Reprinted with permission from the publisher of MBJ Inc. from the January 27, 2012 issue of the

Midlands Business Journal

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