Apartment Owners Respond to Coronavirus Pandemic
The coronavirus is hitting home for apartment dwellers across the United States as several of the country's largest owners and managers shut down gyms, tennis courts, business centers and other common areas to limit the spread of COVID-19.
MAA, a real estate investment trust that owns more apartment units than any other company in the country, alerted residents this week that amenities had been closed "until the COVID-19 situation normalizes." Tom Grimes, chief operating officer of MAA, confirmed to CoStar News that the action took place at all of the REIT's more than 100,000 apartment units in the country.
Equity Residential, Amli, Greystar, Cortland and other major apartment owners and managers took the same action after the Centers for Disease Control and Prevention issued a recommendation to avoid large gatherings or community events. The CDCP also has recommended practicing social distancing by maintaining a 6-foot space between individuals based on the possibility of spreading the virus when in close contact with others.
The World Health Organization reported 184,976 confirmed cases of the coronavirus and 7,529 deaths in 159 countries as of Tuesday afternoon, including 3,536 confirmed cases and 58 deaths in the United States.
Atlanta-based Cortland, which owns and manages more than 60,000 apartment units across the Sun Belt, is closing indoor amenities beginning Wednesday but will leave open its common outdoor spaces, CEO Steven DeFrancis said.
"Being trapped in an apartment with one other person, whether your roommate, spouse or [whomever], and not being able to do anything might cause more damage than coronavirus in about two weeks," DeFrancis said in an interview.
Cortland, which has its three largest markets in Dallas, Atlanta and Tampa, Florida, will maintain a skeleton maintenance crew at its properties "to make sure we continue to serve our residents," he said.
DeFrancis said the majority of Cortland residents said they understood the need to close some amenities.
Equity Residential, the nation's second-largest apartment owner with 79,260 units, according to National Multihousing Council's 2019 ranking, alerted its residents via email Tuesday that it would close its interior amenity spaces and pools beginning Wednesday. "We know these preventative measures might be inconvenient for some people, but it's the right thing to do for the well-being of our employees and residents," Equity COO Michael Manelis said in its email to residents.
Charleston, South Carolina-based Greystar told residents at its Market Square apartments in Houston via email Tuesday that all resident events, gatherings and fitness classes have been canceled and that all common amenity areas would close other than the mail room and package pickup area.
Greystar, owner of more than 62,000 apartments, said through a spokeswoman it could not comment beyond the memo to Market Square residents or whether the same decision was applied to all of its complexes.
"As I’m sure you can imagine, the firm is focused on the safety and well-being of all of its residents and team members around the world and continues to take proactive measures as recommended by the CDC, WHO and local health agencies," Greystar spokeswoman Caroline Rodman said in an email.
At Cortland, DeFrancis said the company is monitoring any financial impact the numerous business closings and major event cancellations might have on its residents' ability to pay rent. Because about 85% of Cortland's population are salaried workers, DeFrancis said he did not expect many of its residents to be affected by furloughs or layoffs at this point.
As for the multifamily industry as a whole, DeFrancis said uncertainty surrounding the coronavirus likely will affect it.
"Right now, everybody's going to freeze for a little while until we figure out the impact on the market," he said.
twilbert@costar.com
@twilbert
