Memphis among riskiest mortgage markets

Memphis Business Journal - November 14, 2006
Memphis is on the list of five top markets for mortgage risk and fraud.

The Memphis MSA ranked No. 4 among the 100 largest metropolitan statistical areas in the U.S., according to CoreLogic, a risk management provider to the mortgage banking industry.

Memphis is an at-risk market for economic consequences of increased mortgage risk and fraudulent activity over the next 18 months, the report stated.

CoreLogic's third quarter analysis of 379 MSAs lists Akron, Ohio, Dayton, Ohio, Detroit, Memphis and Cleveland, Ohio, as the top five at-risk markets.

CoreLogic analyzes geographic areas with a high likelihood of residential loan performance issues leading to negative economic consequences for communities.

"This quarter, the CMRM risk index posted its eighth consecutive quarterly increase," said CoreLogic chief economist Mark Fleming in a statement. "However, while mortgage risk levels remain relatively high, we are seeing a stabilizing housing market characterized by decreasing house price appreciation and a slower increase in the risk index,"

The company says mortgage risk may appear in markets that have experienced strong house price appreciation or in markets experiencing economic stress or lack of house price appreciation.

Sacramento, Calif.-based CoreLogic provides collateral risk-analysis and management technology to the U.S. mortgage banking industry.

Washington developer bringing condos to Midtown

Memphis Business Journal - October 3, 2006
by John Scruggs
Staff Writer

Condo conversions are on the rise in Memphis and a Tacoma, Wash., developer is making a big entrance into the market, buying up aging apartment properties in Midtown for renovation and eventual sale.

The Gintz Group's first Memphis offering is The Villas at Chickasaw, formerly Central Terrace townhomes at 2681 Central.

Gintz purchased the property for $2 million and is converting it into The Villas at Chickasaw, a 32-unit condominium complex with new interiors and amenities.

In addition to The Villas project, Gintz Group purchased Woodmont Towers on North Parkway in September for $10 million.

Ron Gintz says tenants have been notified of the project and condo conversions will begin with the top floors, so the project will be completed in phases.

The Gintz Group also bought The Continental apartment building at Central and Lamar and plans to convert the property to condos after closing it in February 2007.

With the grand opening of The Villas at Chickasaw, the Gintz Group is starting what looks to be a serious commitment to redevelopment in Memphis and specifically for Midtown condo properties.

Prices in the gated Villas community range from $140,000 to $180,000 and association fees will be around $125 per month.

The condos range from 1,450 to 1,600 square feet.

The units are two and three bedrooms and all have two and one-half bathrooms. Renovations include bamboo flooring, granite countertops, stainless steel kitchen appliances, new bathrooms and smoothed ceilings.

Erik Robbins, a partner with Gintz on the project, says the property was a natural target for the conversion.

"The townhouse layout of the complex doesn't have an apartment feel to it," Robbins says. "There's no one living above or below you either."

But the location was the primary factor, he says, with the University of Memphis campus, Midtown and Cooper-Young all nearby.

"The central location was ideal for us, coming into Memphis and a new market," he says.

Gintz is acting as general contractor on the project and Robbins says that allows them to have hands on quality control and cut costs for resale of the units and on the development side.

The Gintz Group has multiple projects in Phoenix and the Seattle area.

Robbins says the condo boom in Downtown Memphis wasn't something the group had an interest in.

"We didn't want to compete with other developers who have a lot of experience in their local markets," he says. "We try to find projects that are good prospects for redevelopment that will benefit the community.

The interior renovations at the Villas are matched by a revamped pool and common area in the courtyard.

Real estate broker Debbie Bronson, of Bronson-Griffin Realty, says the response to the Villas at Chickasaw has been outstanding.

She says two tenants, who were renters in the complex, are purchasing units.

"We've heard nothing but positive feedback from everyone who has seen the renovations to the property," Bronson says.

Aging apartment communities in Midtown are attracting the attention of other developers.

Across Midtown on Madison Avenue, Gary Coscarart has converted an apartment building into The Carolinas Condos and with 15 of the 18 units sold, Henry Heidelberger, of Woodyard Realty, says the project has been a success.

"A lot of our buyers are people who have looked Downtown," he says. "For them to find something for $140,000 to $145,000 in Midtown, it's a great deal in comparison to Downtown prices."

Heidelberger says The Carolinas Condos, at an average size of 1,200 square feet, are selling at average for $140,000.