Freddie Mac has appointed Deborah Jenkins executive vice president and head of its multifamily business, effective immediately. Jenkins also has assumed a role as member of the company’s senior operating committee.

“Debby’s transition into her role as head of the multifamily business has progressed very well, and I am pleased to announce that she will officially assume these duties effective immediately, rather than on the originally-planned January 1 date,” said Donald Layton, CEO of Freddie Mac. “She is dedicated to ensuring this growing segment of our company continues to be an industry leader, innovator and a critical financier of rental housing that is affordable to low- and moderate-income families.”

In September, Freddie Mac reported the retirement of Layton in the second half of 2019, the commencement of the CEO Succession Plan and the elevation of David Brickman as president, after a stint as head of multifamily for the company.

Since 2010, Jenkins has led multifamily, underwriting and credit for the company, overseeing all credit approvals and due-diligence processes, asset level securitization activities, as well as credit policies and governance for all of multifamily’s products. Her approach has produced delinquency rates among the very lowest in the industry and helped ensured mortgage liquidity. Jenkins has spearheaded enhancements in the company’s underwriting process to support its securitization program, including its signature K and SB Deals.

The commercial real estate market is expected to be strong through year-end.

"Our latest Sentiment Index finds commercial real estate industry leaders experiencing continued positive market conditions and cautiously predicting solid performance into 2019,” said Jeffrey DeBoer, president and CEO of the Real Estate Roundtable, discussing the results of the organization’s Q4 2018 Economic Sentiment Index.

“Concerns exist about interest rate and construction cost increases, as well as labor shortages.  However, these concerns have not yet caused significant market disruption," said DeBoer. "With some exceptions,

[caption id="attachment_7411" align="alignleft" width="150"] Jeffrey DeBoer[/caption]

supply and demand in major markets remains essentially in balance, and access to debt and equity remains strong. Disciplined, not aggressive, development and investment are the current watchwords of smart real estate executives.”

Key findings of the report are as follows:

• The Q4 index came in at 50, a two-point drop from Q3. Most suggest that current market conditions are positive and expect such conditions to continue into the new year. However, some responders continue to question, "How much longer can this last?"
• Responders pointed to the increase in costs for constructions projects and the corresponding decline in development returns as a concerning market factor. As a result, fewer responders were highly optimistic about market conditions in 2019 as yield becomes increasingly hard to find.
• For the first time in several quarters, a large proportion of responders are indicating a belief that asset values will start declining. However, pricing is expected to stay relatively strong for assets in major markets.
• Responders feel debt and equity capital are plentiful in today's market. Equity investors and lenders alike continue to show strong appetite for real estate.

Ninety percent of survey participants report Q4 2018 asset values today are "about the same" or "somewhat higher" compared to this time last year. Looking ahead, a minority of participants said they expect values to be "somewhat lower" one year from now with 55% of respondents seeing no significant value declines.

The Department of Labor reported that employment hit a record high of 156,562,000 in October. There were 250,000 new jobs added, or 4.5 million new jobs since November 2016, with gains recorded across all industries.

For the second straight month, the unemployment rate is 3.7%, the lowest rate since 1969. Six times this year, the unemployment rate has been under 4%, and the unemployment rate for Hispanic Americans was the lowest ever recorded, according to the Department of Labor.

“The housing sector registered job gains this month, but the stronger growth in average hourly earnings relative to the private sector overall suggests that labor availability remains a challenge,” said Doug Duncan, chief economist at Fannie Mae. “Information from the household survey indicates that the unemployment rate remains low and steady at a level last seen in 1969.” Gross Domestic Product in the third quarter was 3.5% and consumer confidence was the highest in more than 18 years.

All of which is good news for workers, who are beneficiaries, and are taking home more money.

"Over the past year, we have had the largest increase in average hourly earnings since 2009,” said Alexander Acosta, secretary of labor at the DOL. “It’s encouraging to see that Americans are seeing more in their paychecks as job creators compete for the best talent in the workforce.’

And don’t fear inflation.

“Meanwhile, average hourly earnings accelerated over the year,” said Fannie’s Duncan. “The increase in earnings is a welcome sign for workers and is unlikely to stoke faster inflation given the steady improvement in productivity. The updated information released today suggests that the labor market remains strong and inflation remains manageable, supporting our call that the Fed will raise its key policy rate in December.”

Walker and Dunlop Investment Sales LLC has closed the sale of Stadium Walk and Overlook at Huntcrest, two multifamily properties located in Atlanta. The two transactions were completed on behalf of Brand Properties for around $133 million.

Since the Great Recession, Atlanta’s suburban renter base has grown faster than any other suburbia or city center in the United States. Atlanta’s diverse economy, low cost of living, abundance of well-paying jobs and high quality of life have enabled the city to maintain this high level of population growth.

Led by Kris Mikkelsen and Chris Goldsmith, WDIS’ Southeastern team represented the seller, Brand Properties, in the sale to Blaze Partners. WDIS’ multifamily finance and capital markets team, led by Stephen West, Matthew Wallach and Justin Nelson, arranged financing for the buyer’s acquisition.

Stadium Walk has 309 units and is located in the Cumberland submarket of Cobb County. The high-density surface parked community is within walking distance of The Battery Atlanta, a $2 billion mixed-use development and home of the Atlanta Braves.

Overlook at Huntcrest is a 299-unit, garden-style apartment community located in the Sugarloaf submarket of Gwinnett County, one of Atlanta’s most affluent communities.

“Brand Properties delivered two long-term investments in submarkets poised for continued growth and success. Blaze and their equity partner recognized the challenges related to additional multifamily development in both municipalities and the long-term growth prospects that come with those barriers to entry, said Kris Mikkelsen.

WDIS is a leader in the multifamily brokerage space and continues to expand its capabilities and reach across the United States. In 2018, it expanded to several new markets, including Boston, Dallas, and Southern California.