OCR Interpretation


Evening star. [volume] (Washington, D.C.) 1854-1972, November 20, 1937, Image 24

Image and text provided by Library of Congress, Washington, DC

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83045462/1937-11-20/ed-1/seq-24/

What is OCR?


Thumbnail for C-2

RENTAL PROJECTS
Falkland Properties Official
Cites Four Advantageous
Features of Plan.
Rental housing projects as devel
oped by the Federal Housing Admin
istration offer four advantageous fea
tures to investment managers of
landed estates, according to William
D. Blair, president of Falkland Prop
erties, Inc., which now has in opera
tion or nearing completion 479 apart
ments on a 24-acre tract at Silver
Spring.
These four features, as cited by Mr.
Blair in the current issue of the In
sured Mortgage Portfolio, official pub
lication of the Housing Administra
tion, are: 1. retention of the original
land investment; 2, conversion of the
property from a liability into an in
come-producing asset with prospects
of steady income and appreciation; 3,
setting tip a safe investment for some
of the estate's liquid funds and 4. pos
session, eventually, of a good, unen
cumbered, income-producing housing
property.
a iuuai uauiiic m»iu rtimmnu '
properties, after substantial allowances
for vacancies and rent losses, is cal
culated to be sufficient: b, to cover
the cost of operation, taxes, interest
on the mortgages for $2,065,000 and
other charges incidental to the financ
ing: 2, to retire the mortgage debt in
26 years or less: and 3, provide an in
come of approximately $30,000 a year
for the holders of the equity in the
property.'' Mr. Blair writes. "Falk
land Properties, Inc., is capitalized at
$2,725,000 with the $2,065,000 mort
gages bearing 4J3 per cent interest.
Mortgage funds for the first Falkland
project of 178 apartments were pro
vided by the R. F. C. Mortgage Co.
in the amount of $840,000. Funds for
the second project of 301 apartments
were provided by the Union Central
Life Insurance Co. in the amount of
$1,225,000. Mortgages on both de
velopments are insured by the Federal
Housing Administration.
"Our equity in both projects will
increase monthly due to the scheduled
monthly amortization payments which
will retire the debt at a much faster
rate than the property will depreciate.
Repairs, maintenance and replace
ments will be cared for in the operat
ing charges. Furthermore, in addition
to the limited dividends governed by
the Housing Administration's rental
housing regulations, a substantial cash
surplus will remain to be applied to
additional debt reduction.
"As to rental scales, we could un
doubtedly get considerably higher
rents now than are allowed under
these Housing Administration regula
tions. But. this reduction in income is
offset by the additional security which
results from this policy, which places
the property in a much broader and
therefore a much safer rental market.
Vacancies should thus be reduced to
a minimum.
“Federal Housing Administration
operating requirements keep the prop
erty in first-class condition and main
tain its appeal to the renting public.
"As to the matter of dividend lim
itation. we feel the annual cash in
come allowed on our equity investment
is adequate due to the fact the cash
dividends are only part of our real
return from the property. Part of
the rental income each year is applied
to debt retirement. So, when the
mortgage loans are paid off, the full
amount of the rental income now ap
plied to interest, mortgage insurance
premiums and amortization will be
come available for dividend payments.”
_
Unusual View of Stairway in Star Home
Here’s how the beautiful circular stairway in the thirteenth Silver Star Home looks from the
third floor. The home, located at 116 Woodlawn avenue, Kenwood, will enter the third week of
exhibition tomorrow. It was built by the Kennedy-Chamberlin Development Co.
_______ —Star Staff Photo.
Forecast
'Continued From First Page.)
steel and other building materials were
lifted following prolonged and expen
sive labor agitation, prices were ad
justed to reflect not only actual, but
expected increased costs—and then the
public balked, as might have been ex
pected.
In February, L. J. Chawner, Com
merce Department construction-eco
nomics expert, wrote that "increasing
costs of construction due to skilled
labor shortages and advancing ma
terial prices may retard actual build
ing.” And that is what happened.
During the first half of 1937 residential
construction increased 39 per cent, as
compared with the same semester of
1936, but during the third quarter it
was 22 per cent less than in 1936. Now
general business uncertainty is further
adding to the risks of home construc
tion.
Thus is particularly unfortunate,
since the latent demand for new houses
is larger than in many years. In 1932,
vacancies in many cities were as high
as 8 per cent of the existing dwelling
units. This ratio has been steadily de
clining. and in some cities is now down
to less than 2 per cent.
Long-Term Fluctuations.
The production of houses is marked
by severe long-term fluctuations in
volume. Thus, according to one esti
mate, in 1918, about 200,000 units were
built; in 1925. 894.000, or more; in
1935, 38,000, and, in 1936, 275.000. Evi*
dence of cycles of large amplitude
with durations of 16 to 22 years have
been found by Mr. Chawner.
No other industry of comparable size
has evidenced as severe fluctuations
during the post-war period. The post
ponable character of new construction,
the great length of life of houses and
the relative ineffectiveness of economic
processes for taking submarginal struc
tures permanently out of use add to the
violence of changes in construction ac
tivity.
Anything which would lower the
cost, of home* would tend to stimulate
home building. A one-fifth reduction
in the cost of a home, from $4,000 to
$3,200, would probably increase the
number of families which could afford
such a home by about 3,500,000 in
non-farm areas. This suggests the
powerful influence which a reduction
in costs would have.
During periods like the present,
when there is a shortage of houses,
"cost of ownership" plays an im
portant part in determining the vol
ume of new building. In 1919-20,
when costs of materials and wages rose
sharply, the sudden rise, in spite of
very active demand, did much to
cause a reaction in new ouilding. On
the other hand, the early readjust
ment of prices late in 1920 induced
new construction in 1921.
High Costs Play Role.
It is a fair inference that high costs
have been playing a similar role in the
building recession of 1937. The cubic
foot cost of building in the District
of Columbia rose from 21.5 cents in
September, 1936, to 26.2 cents a year
later. The total building cost of a
standard six-room house in the Dis
trict of Columbia was, according to
the Government, $4,973 in June, 1936,
and $6,286 in September, 1937.
In August, the wholesale prices of
building materials were almost 11 per
cent higher than in August. 1936.
They were, in fact, higher than at
any time since 1929.
How can costs be reduced? One
important method Mr. Roosevelt has
in mind is cheaper financing costs.
Experts hold that if interest rates
were to be lowered from 6'2 to 4'2
per cent and amortization to be ex
tended from 20 years to 30 years,
5,000,000 more families of moderate
income could support the ownership
of a housing adequate to their needs
Encourages Lending.
The Federal Housing Administration
at present insures loans made to home
owners by banks, life insurance com
panies and building and loan associa
tions for repairs and construction
By assuming the risk, It encourage!
such private institutions to lend. Bui
there are now certain safeguard!
which, some think, restrict its bene
fits. Thus, the new home owner must
have a 20 p>er cent equity in the house
In other words, only 80 per cent ol
properties up to $20,000 in value maj
be insured If this were changed tc
90 per cent, at least for small houses
house building would receive a great
stimulus.
As to home building costs othei
than financing, much might be ac
complished Thus, instead of per
mitting wages and prices to play leap
frog, industry and labor—as Secre
tary Roper and other officials havt
suggested—should get together anc
plan for their own and the country'!
best interests. In Great Britain, si)
years of voluntary co-operation of al
branches of the housing industry hav<
assisted in maintaining building ac
tivities. The rates of building societiei
have been reduced from 8 pier cen'
in 1929 to as low as 4'a per cent.
Strong revival of the building in
dustry would give powerful stimulu
to business throughout the economii
system, as it has done in England
The favorable effects would be fel
by all those who produce, transport
distribute or handle the numerou
materials used in construction work.
(Copyriiht. 1937. by the North American
Newspaper Alliance, Inc.)
FAIRFAX REALTY
MARKET ACTIVE
Value of Property Changipg
Hands Is Estimated
at $100,000.
Special Dispatch to The Star.
FAIRFAX, Va„ Nov. 20.—Fou
real estate transfers Involving con'
siderations of *10,000 or more weri
made In Fairfax County during thi
past week on the basis of records'
tlons in the office of the county clerk
The largest consideration was *17,500
Real estate sales continued actlvi
during the entire week and the valui
of property changing hands approxi
mated *100,000. Several larger tract
were Included among those to changi
hands.
Sales made during the period in
eluded the following:
A tract of 19.7856 acres in Moun
Vemon district between Telegrapl
road and Kings highway was sold ti
Mr. and Mrs. Richard Fyfe Boy©
by Mr. and Mrs. J. A. Edgerton. Oi
the right of way of the abandone<
Great Palls & Old Dominion Rail
road in Providence district a tract o
4.823 acres belonging to Mr. and Mrs
Edward Bailey was sold tc Mary H
Hutchinson, and 3.61 acres in Le
district on the road leading througl
the District of Columbia Workhous.
grounds was purchased by Mr. am
Mrs. Clarence B. Jett from Mr. am
Mrs. George E. Tyers. One acre ii
Falls Church district was sold 0
Mr. and Mrs. Vernon M. Lynch b;
Mr. and Mrs. Shelton T. White.
House Sold in Fairfax.
In the town of Fairfax a hous
FJ
' and approximately 4.5 acres of land
were conveyed to Col. and Mrs. Edward
M. Offley by Miss Elizabeth Hillyar
and Mrs. Eleanor Hillyar Gibbs. The
property Is located across the street
from the courthouse grounds. Mr.
and Mrs. J. R. Lowry and Mr. and
Mrs. N. L. Lowry have each conveyed
a lot In Port Buffalo to Mr. and Mrs.
I. M. Wakeman. W. C. Harrison has
purchased a lot in Centreville district
on the Centrevllle-Manassas road from
Mr. and Mrs. G. F. Compton, and a
tract of 46.79 acres near the Episcopal
Theological Seminary, Falls Church
district, has been sold to Dr. Claude
Moore by Mrs. Bettie V. Stonebumer.
A lot on Lee Boulevard, Falls Church
district, has been sold to John L.
Hoover by Mr. and Mrs. Otis L. Mo
1 hundro.
Mr. and Mrs. John H. Eadie have
1 purchased a house and lot in Devon
shire Gardens from W. S. Hoge, 3d,
and a lot in Falls Church district at
the intersection of Quaker lane and
1 Little River pike has been sold to
' Mr. and Mrs. John W. Garrett by Mr.
1 and Mrs. James M. Simpson. At
1 Hunters Mill in Providence Mr. and
Mrs. Edward S. Brashears have sold
5 5 acres to Leona B. Helm, a portion
of the old Brashears farm. Manning
‘ Gasch has purchased 26.857 acres In
1 Providence district on the road from
1 Jones Shop to Swinks Mill from Mr.
■ and Mrs. Herman E. Gasch. Two lots
1 in Fort Buffalo have been conveyed
1 to Mr. and Mrs. I. M. Wakeman by
' Mr. and Mrs. Shelby R. Lowery and
' Mr. and Mrs. Wakeman conveyed
• 17.157 acres on Miller road in Provi
• dence district to Mr. and Mrs. Lowery.
216 Acres in Centerville.
. Approximately 216 acres in Center
[ ville district on Little Smoky Run and
I the Mannassas road has been sold to
i Mr. and Mrs. Frank A. Hitchcock by
, Mr. and Mrs. H. Randolph Barbee,
r A tract of about 16 acres near Pender
In Centerville district was sold by Mr.
and Mrs. Herman Kadan to Mr. and
Mrs. Jesse A. Wingate, and 6 acres in
>! Providence district on Flint Hill road,
leading from the Dee highway to Oak
ton, was bought by Tyler Berry from
Mr. and Mrs. Prank C. Gibson. Lots
In Mount Vernon Hills have been sold
by Mr. and Mrs. Fred E. Broker to
Mr. and Mrs. Homer H. Hartman, Mr.
and Mrs. Aaron A. Stone. J. French
Simpson and Thomas Harold Wilson,
and 3 acres at Newington in Mount
Vernon district have been sold to Mr.
and Mrs. Robert Winstead by Mr. and
Mrs. Harry R. De Woody.
.
JOINS MANAGER GROUP
National Pres* Building Becomes
Association Member.
The National Press Building, the
largest private office building in Wash
ington, containing almost 200,000
square feet of net rental office space,
has been elected a member of the
Building Owners and Managers Asso
ciation of the District of Columbia, it
was announced by the association’s
president, James McD. Shea, today.
This brings the total number of of
fice buildings in the organization to
over 15, containing almost 1,000,000
square feet, or about one-fourth of the
space in standard office buildings.
Softening Paint Brushes.
To soften neglected paint brushes,
soak In paint and varnish remover
with linseed oil and follow with a soap
suds bath.
USE
CAST STONE
SILLS
For All Masonry Openings.
They improve appearance,
guard against leakage and
speed up construction.
WE STOCK
STANDARD SIZES
EDMONDS ART
STONE CO.
MEMBER CAST STONE INSTITUTE
ATIantic 2000
We Invite Comparison at this Price
3509 Texas Ave. S.E., $9,750—Terms
High Elevation, Overlooking the City
• Bedroom end both on first • Slate roof
Moor • Insulated
• 2 bedrooms and bath on 0 Furred walls
2nd floor # Detached garage
• Oil heat 0 Large lot
Open Daily and Sunday
tO REACH' Cross Penna. ■% ■■ m ** •
Ave. S.E. Bridge and con- KatldlC CT (jOrVIfl
tinue to uno block S.E., _ WiSTlll _
turn left V4 block to house. 2515 Pa. Ave. S.E. Atl. 7500
Best Values on 16th St. I
. ■VJWV.yy? IIIIIUIIH. IJWjWWSM .v.. .■v'vw^vi livr^.TTTg
Corner of Sixteenth and Underwood
6407 to 6427 16th St.
$15,950 up
|i New homos that are not only perfect in design—but built with the best
!! materials. The home pictured has 4 bedrooms and finished third floor,
j Beautiful library and lavatory on first floor and large floored recreation
j room. Maid's room and full bath in basement; 2-car built-in garage—
| entrance on Underwood St. Inside homes have 6 rooms and 2 baths,
lavatory on first floor, complete finished attic and beautiful recreation
room. Large lot. Brick garage. Paved alley. All homes have copper
I flashing, screens and downspouts, rock wool insulation and furred wails.
Open Daily for Your Inspection
Drive Out 16th Street to Underwood Street
liM Vermont Are. ki CT7I CD * NUht
DI. 8600 f ▼lu I JLm E E l\k AD. 0620
A Beautiful Home Which Features
First Floor Bedroom and Bath
$10,950
rx—v---- .
5311 42nd Street N.W.
This unusual home, one of a group of seven, contains large living
and dining rooms, model kitchen, 3 bedrooms ond 2 baths. The
house is equipped with a Reynolds Air-Conditioning unit, has
furred walls, detached garage, exceptionally large yard ond is
completely insulated.
Also Visit the Furnished Display Home ot 4113 Jenifer ond the Other
Homes in This Group Priced From $9,950 to $11,950
TO REACH: Out Connecticut Ave. to Jenifer
St. N.W., left to ilnd St., right to home.
Built by Chas. Sturbitts
LESLIE D. MEASELL
^_5008 Cc^u^cH^it Ave. ^ CLevt. 6614
4-BEDROOM, 2-BATH HOME
CHEVY CHASE, P. C.
Exceptionally Convenient Location
Naar Parochial and Public Schools, Stores, Churches
and Transportation
OUTSTANDING—AT $12,500
3711 Northampton St.
A beautiful English type home. Space in attic for additional bedroom
and bath. Slate roof, oil heat, electric refrigeration,
front and side porches.
OPEN ALL DAY SUNDAY
, cJfL ^j0NES (0, »»
i
MICHIGAN PARK
$8,250 New Colonial Homes '] left1
4102 10th STREET N.E.
Locoted in the finest section cf Northeost Washington, the homes face
a fifteen-acre Government pork with a ten-minute ride via bus or trolley,
bringing you down town. Floor plans provide oil conveniences, including
a hall from the front door to the kitchen, large square second floor hail,
3 bedrooms, lovely both, spacious linen and bedroom closets and beau
tifully proportioned doors and \vmdows.
; TO REACH: Drive nut Mtchioan nr Rhode Island Are. to Tenth St. S Z..
turn left on Tenth to sample home at jl02.
Malcolm Matheson, Jr., Inc.
OWNER POTOMAC 4818 BUILDER
I —
I y-/<tR^/DE—|
CHEVY CHASE
announces the opening of
the first exhibit home
111 OLIVER STREET
OPEN DAILY AND SUNDAY
This group of new detached homes are
of the Williamsburg design. From the
oversize handmade brick, the finish of
the interior, the library with its open
fireplace and second floor porch, the
Colonial effect is carried throughout.
|
Completely Furnished by Hutchison's, Inc.
Draperies by John Ligon, Inc.
THIS IS AN ELECTRIC
KITCHEN HEALTH HOME
G.F.Mikkelson&Son
Realtors—Builders
Arthur B. Wheaton, Architect
Milton F. Schwab, Sales
Curtis Millwnrk and Lumber by
W. T. Galliher 8 Bre.
Follow Map for Directione to Home
I i;
|
SrnnkMe
"A COMMUNITY OF DISTINCTIVE SMALL HOMES"
r— ■ < - -
4706 Harrison Street
*8,950
This delightful six-room house with a slate roof, fireplace. Air conditioned, cop
per water pipes and copper gutters, on a well landscaped lot with a FRONTAGE
OF SIXTY FEET in a community with an unequaled environment.
| In a community like Brookdale, famous for its "Quality" Homes and quality
residents, the careful Buyer may safely assume that low prices represent real
bargains because, every house, modest or elaborate, must comply with rigid
restrictions.
Fortified by many years of experience in "quality" home building, Cooper Light
bown & Sons are fortunately able to maintain a low price scale in Brookdale
because they design, build and sell their own houses. You will know this is
no idle boost if you inspect our homes.
We have built and have on display houses illustrating a wide variety of ex
terior designs and floor plans ranging in price from $8,250 to $15,500.
CAREFREE COMFORT WITH MODERN GAS APPLIANCES
Brookdale at Western Avenue and River Road,
2 blocks beyond 46th and Fessenden Sts. ‘
I— COOPER LIGHTBOWN & SONS
A * * t.

xml | txt