Week of August 28th

Multifamily Insights and Developments

With an unwavering dedication to the multifamily sector, we stand as experts at the intersection of technology and real estate. Our approach is all-encompassing, drawing insights from a diverse range of sources. This includes active participation in local networking events, collaboration with subject matter specialists, and a meticulous review of esteemed industry publications such as Multi-Housing News, Multifamily Insiders, Multifamily Dive, and NHMC. Through this comprehensive strategy, we curate a panoramic view of the multifamily landscape, encapsulating traditional multifamily communities, senior living residences, student housing facilities, and the innovative Build-to-Rent asset category. This expansive perspective positions us as not only observers of the current multifamily industry but also anticipators of the challenges and opportunities that lie on the horizon.

Embedded in our mission is the empowerment of strategic decision-making within the ever-evolving real estate and property investment arena. As technology reshapes the real estate landscape, our blog serves as a guiding beacon, illuminating pivotal industry shifts and noteworthy investments. In the rapidly expanding realm of PropTech, our insights serve as a compass, adeptly navigating the intricate terrain of technological advancements. Our commitment is to provide you with comprehensive insights into the dynamic #PropTech landscape. These insights empower you to make informed choices, spearhead innovation, and proactively fortify your real estate portfolios for the future.

In the multifamily sector, several noteworthy trends and developments have taken center stage in the past week, strong outlook amid challenges

Market Insights and our thoughts for this week:

• Apartment Sales Volume Update
  • Year-over-year sales volume drops 76% to $6B.
  • Cap rates reach 5%.
  • July transactions down 53% compared to pre-pandemic average.
• While there might not be a substantial amount of money actively pursuing apartment deals at the moment, experts believe that capital is poised to seize opportunities once deals become appealing.
• Co-Living is transforming urban housing by combining privacy and sociability – as renters are preferences revolve around flexible, community-centric living arrangements with the affordability as one of the main themes. Such living arrangements have been popular in Europe.
• With the escalation of labor expenses and the increasing challenge of recruiting property staff, numerous apartment managers are opting to centralize their operations. This strategic move aims to strike a harmony between cost reduction and the preservation of resident satisfaction.
• Most of the workforce work from home at least 30% of the week and with the shortages in the rental properties in NYC, conversions is at the center stage. A proposal to convert offices into multifamily housing is being examined to address the affordability crisis.
• Rent growth in Dallas, as the city added 200K+ jobs in the last 12 months with cl0se to 60K+ apartment units under construction
• Tampa’s multifamily market is experiencing a rebound, with area rents once again on the rise
• Apartment managers are centralizing operations due to rising labor costs and staffing challenges, focus needs to be reducing cost, while maintaining resident satisfaction.
• Multifamily leaders advise on protecting ROI by focusing on existing renters

Developments around the country:

• Howard Hughes Holdings is developing a multifamily residential project – called 1 Riva Row, will include both a 13-story tower and four-story residential living, totaling 268 units
• The development, called 1 Riva Row, will include both a 13-story tower and four-story residential living, totaling 268 units
• Bainbridge opens Greek-inspired apartments in Tampa Bay area, Located on the water, offering bay-view balconies and premium amenities, with 283 units
• Much anticipated NOMIA Midtown Apartment 281-unit, High-Rise, with luxury services and rooftop pool opening soon
• Per Bisnow: $360M loan for Wardman Park Hotel’s 900-unit redevelopment. The developer plans to demolish the existing hotel and replace it with two 90-foot residential buildings surrounding a central courtyard.
• Mill Creek acquires “Modera Art Park” in Colorado, a mid-rise with 417 units, with expansive amenities and features purchased from Carmel Partners.
• The Wilf family’s Skyline Developers has started construction on a luxury residential tower in NYC – the 26-story, 152,000-square-foot apartment tower will feature 97 rental apartments
• Mosaic and NexMetro have broken ground on a build-to-rent project in Phoenix, Arizona a $63 million, 197-unit
• Abacus Capital has acquired a Portland-area community for $97 million 440-unit multifamily community in Gresham, Oregon
• Bike shares and e-bikes are gaining popularity as amenities for modern renters.
• AvalonBay and Penzance have made a $105 million deal.
• LCOR has secured $94 million for building a tower with green power.
• Howard Hughes has started preleasing for, Wingspan, its 263-unita Texas Build-to-Rent (BTR) community, that will open in October. The development is located within the Bridgeland master-planned development
• TWG is set to build affordable housing, 192-unit, $42.9 M project, in the St. Louis area, with a focus on residents earning 60 percent or less of the area median income.
• Millennium Edina, a Twin Cities community, has been sold for $75 million. It consists of 227 units, with 11 of them being affordable housing.
• Interstate Equities has acquired a suburban Seattle asset, of 121 units for $28 million, with representation by IPA in the transaction
• Mill Creek has acquired a mid-rise property, with 417 units in Colorado, specifically Modera Art Park, with assumed fixed-rate financing from Carmel Partners.
• Curve Development has opened new single-family rentals called Cyrene at Meadowlands north of Sacramento, consists of 81 units
• A New Jersey-based real estate investor recently bought a 67-unit apartment complex in Manchester, Connecticut, for $12 million. The purchase, recorded in a deed on July 19, involved two limited liability companies connected to CUE Residential, 
• Maverick Apartments LLC, a 480-bed property in a Pennsylvania college town was sold for $13.3 M. Despite the current economic uncertainty, the student housing sector continues to show resilience, reaching a nearly 91 percent preleasing rate in July, up 4.6 percent compared to the previous month
• HGI acquired the Myrtle Beach Project from an asset manager, Artisan Carolina Forest, on 21.5 acres, a 276-unit luxury community for $64.4 million
• U-Haul expanded its East Georgia portfolio with a 422-unit property acquisition.The three-story property sits on 2.3 acres and features 422 climate-controlled units

Multifamily funding and development announcements, have been sourced from MHN, Multifamily Insiders, Multifamily Dive, NHMC, social networks as well as knowledge gathered from multiple local events like WIMFA