Tag Archives: apartments

Investment Firm Buys 3,000 North Carolina Apartments In The Middle Of Rising Regional Demand

Financial investment firm Starwood Capital Group bought an 11-property North Carolina apartment portfolio from multifamily designer Electra America in an indication of surging demand throughout the region for leasings in a strong economy.

The purchase extends Starwood’s heavy financial investment in slightly older systems in secondary southeastern markets. Both Charlotte and Raleigh have had outsized task growth and need for leasings in the present financial recovery.

The nearly 3,000-unit bundle is located around Charlotte and Raleigh, NC, and all are Class-B properties averaging 30 years old. That leaves some space for Starwood, based in Greenwich, CT, to update the units and raise leas while still undercutting the rents at more recent, neighboring leasings.

CBRE brokered the deal for Electra and partner Morgan Stanley realty. Electra America is the Florida-based U.S. arm of Electra Property, locateded in Tel Aviv, Israel.

Terms of the offer have not been revealed, however older vintage leasings in those markets have been trading for in between $125,000 and $200,000 per unit.

Electra itself assembled a portfolio of Class B Raleigh and Charlotte homes in 2016 and paid about $110,000 each, for an overall of $365.9 million. It’s uncertain how many residential or commercial properties from that 2016 purchase were sold to Starwood, but regional experts estimate the rate this time around would top $400 million.

Investment Dispute Over Homes Versus Apartments Plays Out in Florida


Principals of Miami-based Property Investment Advisors Group. Pictured, delegated right: Danny Kattan, Saul Levy and Jimmy Levy. They wish to own 7,000 rentals in 7 years.A familiar decision facing lots of investor across the nation is playing out in South Florida: whether to bet the United States housing market is peaking and look for more stability in financial investments like massive apartment complexes. Convinced the multifamily market will produce strong returns

forever, a 10-year-old personal equity financial investment company is shedding its portfolio of single-family houses and strategies to acquire institutional-grade apartments across the U.S. Southeast. Miami-based Residential Or Commercial Property Investment Advisors Group wishes to own 10,000 systems in the next seven years. It just recently sold 200 single-family houses in South Florida for$ 47 million to Cerberus Capital Management, a

New York-based company with an executive team that consists of former U.S. Vice President Dan Quayle. Home Investments still has 250 more homes to sell between now and December. At its peak, the company owned and managed a portfolio

of 600 houses in South Florida, according to co-founder and partner Jimmy Levy. However he stated that many of the properties were in such bad shape from the real estate meltdown that they needed major renovations, if not total rebuilds. After the firm leased the houses, Levy stated, upkeep was a consistent struggle because they were spread throughout three counties, and a few of the tenants didn’t appreciate upkeep.” If you can manage that, “he stated with a chuckle,” you can manage anything.” Levy expects the multifamily venture to be lucrative, and easier to supervise than private homes.

” With houses, we were replacing hundreds of roofings, but with multifamily there’s

however one roof,” he noted.” There are more parts to a home than there are to a system in a structure

.” The change in method comes amid a still-thriving market for single-family homes, with mean costs rising in Florida and throughout the nation due to the fact that of a persistent

shortage of properties for sale. The Florida Realtors trade group said this week that South Florida’s median cost for single-family houses in June was $359,900, up 4 percent from a year earlier. Rates have actually been on a constant

climb given that 2012. The firm could keep its single-family portfolio and keep enjoying rates rise, but Levy is undaunted that selling now is better than aiming to time the marketplace. Lots of analysts expect multifamily principles to remain

robust nationwide, even as the sector slows in comparison to the spirit of recent years that saw incredibly low vacancy rates and double-digit rent gains. The big rental rate boosts are slowing, according to CoStar Market Analytics. In South Florida, for example, CoStar jobs growth to increase by just 1 percent in the

next number of years, with rent reductions possible in some structures. L. Keith White, president of Reinhold P. Wolff Economic Research in Oakland Park, FL, said the excessive rate of multifamily building across South Florida recently is just making up for the scarcity of activity throughout the last years’s housing bust. And prior to that, designers transformed apartment or condos to condominiums by the thousands, which likewise depleted the supply of rentals. A report recently from commercial property services firm Berkadia showed that demand in South Florida still far surpasses supply. In spite of all the brand-new structures, proprietor concessions are reasonably rare, White stated.

Still, the market is bound to soften, though it’s hard to forecast the timing, he kept in mind.” Down the road somewhere, it’s going to level off, “he stated

.” It’ll take place. It’s simply a concern of when.” Moving from homes to leasings makes good sense for investors because it offers efficiencies in residential or commercial property management while likewise diluting vacancy threat,

discussed Daren Blomquist, senior vice president of ATTOM Data Solutions, a research firm based in Irvine, CA. Still,

investors need to be wary of all the multifamily building and construction, particularly in the luxury arena, according to Blomquist.” If somebody is looking to buy multifamily at this point in the real estate cycle, they truly need to be aware of the supply landscape in their particular market, “he

said. But Levy, who began the firm with his sibling Saul and 2nd cousin Danny Kattan, is confident that multifamily investment is a smart play long term– especially in the value-add section that the firm is targeting. With value-add investing, firms purchase rentals that need remodellings.

That enables the owners to raise rents and potentially resell for big revenues. Levy said it might be a difficulty purchasing properties in significant metropolitan areas such as Miami, so the firm is focusing on secondary markets with high-growth capacity.” Millennials are not truly purchasing houses,” he stated. “They desire the flexibility to move from one location to another.” The only issue I see with multifamily is that it’s a seller’s market,” he added.” However there are still great opportunities out there. We just have to be client and not set off pleased.” Paul Owers, South Florida Market Reporter CoStar Group.

Will Samsung Make Cortland Apartments Smarter?

When it pertains to picking an apartment or condo, studies show tenants actually want in-unit washers and clothes dryers and dishwashers. However do apartment or condo hunters care about the device’s brand?

Samsung and Cortland Partners are betting that they do.

The Korean electronics giant’s U.S. arm and the fast-growing Atlanta-based apartment developer and owner recently formed a multi-year collaboration to “incorporate Samsung house appliances” into each of Cortland’s new and renovated houses in 20 cities across the United States. Cortland, which owns and handles 48,000 apartment homes, currently is installing Samsung devices in three neighborhoods in Houston and plans to put them in apartments soon in Dallas and Austin along with in Tampa, Atlanta, Phoenix and Birmingham, Alabama.

“Samsung’s partnership with Cortland Partners signals the role that a younger generation is playing in opening a new period in connected home appliances” said Tom Halford, a vice president in premium and contractor brands house appliances at Samsung Electronics America.

The Samsung-Cortland hookup comes as developers and owners look for methods to incorporate brand-new innovations into their houses. Last month, CoStar News reported that Australian developer Caydon Residential or commercial property Group remains in talk with bring Amazon’s Alexa virtual assistant to its 8th and Cherry Street condo task slated to begin next year in Seattle. Caydon U.S.A. also is preparing to incorporate Alexa into The Midtown, a 27-story apartment or condo advancement under way in Houston.

Home appliances can be key selling points for an apartment or condo task. Some 86 percent of tenants will not lease a home that does not have a dishwashing machine, according to the 2017 National Multifamily Housing Council/Kingsley Renter Preferences Report. Having in-unit washers and dryers ranked second just to cooling as their most-desired facilities, according to Apartments.com, a nationwide online resource for house hunters owned by CoStar Group.

At its new and remodelled houses, Cortland and its CASK Industries subsidiary, strategy to set up Samsung counter-depth refrigerators with French doors, dishwashing machines with covert controls and stainless steel; slide-in varieties. CASK Executive Vice President Larry Laseter said the firm worked closely with Samsung to pick the home appliances with modern-day designs that would appeal to its tenants.

“While the very first bundles of Samsung products picked do not link to the Samsung app, there is an opportunity for Cortland to pick these types of items for future communities,” Laseter stated.

Leisure Time and Fun: the New Must-Haves at Apartments

As the High-end Multimaily Market Peaks, House Owners and Managers Turning to Social Facilities to Engage Homeowners at Their Residence

Boston-based National Devlopment uses an engagement manager and a renter app to set up occasions for residents.

The brand-new must-have facility for luxury house jobs? Time.

Throughout this economic development cycle home designers have actually taken part in a virtual arms race of facilities. Many were physical goodies they could promote in residential or commercial property trips – functions like supplied guest suites for resident’s out-of-town visitors, roof swimming pools, and walk-in lobby refrigerators for food shipments.

Now, say apartment designers and residential or commercial property supervisors, the pattern is to providing services that conserve residents time, or experiences that make reliable use of it.

Throughout the nation high-end homes are now providing a host of brand-new services to draw in occupants: dog-walking, wine tastings, poker nights, errand-runners.

“There’s this feeling that the facilities war has run its course – everybody has the very same check list on their website,” stated Tom Geyer, vice president of branding at the Bozzuto Group, the Greenbelt, MD.-based developer and apartment supervisor.

“But I do think the battle of services is a newfound technique to develop value.”

Bozzuto, which owns or manages more than 60,000 units up and down the East Coast, has become an expert in including these experience-based and time-saving services, and notes the appeal of service and experience-based amenities crosses all age groups.

For its part, Geyer stated Bozzuto doesn’t aim to mold their residential or commercial properties to fit a certain age group – for millennials, state.

Rather, the company sees its properties and tenants in regards to “tribes.” Some properties have a prevalence of bike riders, some have pet dog owners, and others are dominated by senior citizens trying to find city living experiences.

“Most of our residents are not non-social people,” stated Geyer. “Structure amenity space has to do with supporting interaction, trying to find a possibility meeting of the tribe.”

For example, Geyer said homeowners aren’t simply thinking about an onsite gym, they desire access to classes.

“Classes are the primary thing, group classes,” he said.

That suggests not simply including amenities, but re-designing some of the existing amenity spaces. Gyms need to be developed to accommodate the new trends of cross-fit, PX-90 workouts. And devices has to be positioned to accommodate classes.

National Development, a multifamily designer and manager based in Boston, concurs with the new thinking. It worked with a full-time marketing and community engagement supervisor who collaborates occasions for a dozen National Development residential or commercial properties.

“It’s not an either-or proposition,” said Ted Tye, a managing partner at National Advancement. “There’s been a real push for physical facilities, and that hasn’t eased off. Layered on top of that, as the marketplace gets more competitive, is the social amenity.”

Something National Development has actually done to fill that need is to employ Doorbell, a tech business that began as a Harvard Innovation Labs project. It supplies multifamily homeowner with an app their renters can utilize to learn all the social features set up on website and deal discount rates to local businesses.

By analyzing information from used discounts, supplemented with tenant studies, Doorbell can give owners and supervisors more insight into the interests of their renters: are they more pet dog owners? Or more wine tasters? Are they foodies who wish to RSVP an invite to a chef’s table night at a hot brand-new restaurant? Or do they desire a running club?

Doorbell then utilizes that info to set up occasions.

Doorbell founder Ben Pleat says a great deal of the high-end physical facilities go unused while costing owners tons of cash. He cited soundproof “jam spaces” where locals can play instruments without disrupting the next-door neighbors that have actually been included in some luxury homes accommodating younger renters.

Doorbell, and services like it, he said, are more efficient in determining facilities that will get the most bang for the dollar.

“Don’t invest $5 million on a soundproof space where a few millennials can bang on a drum,” he said. “Spend $100,000 to help create a neighborhood.”

When homeowners enjoy their experiences, they are more likely to renew, said National Advancement’s Tye and Doorbell’s Pleat, which straight affects property owners and apartment or condo supervisors’ bottom line.

Las Vegas Strip Ready for New Apartments?

CoStar Market Insights: 4- and 5-Star Units Delivering for the First Time in a Decade

The 4-Star, 295-unit Lotus apartment at 3616 Spring Mountain Rd. in Las Vegas

Credit: Fore Residential Or Commercial Property Co.

. Understood for the occurrence of casinos and resort hotels, the location around that Las Vegas Strip has seen little in the method of brand-new house advancement in the last few years. However, with both task and population growth on a favorable trajectory, the very first brand-new supply in a decade is beginning to show up, with 295 units provided in 2018 up until now. And, those new additions are all 4- and 5-Star properties using top-of-the-market amenities.

Renters have usually been drawn to the Las Vegas Strip for its price and distance to an abundance of jobs. The neighborhood uses a few of the most affordable cost of living in the city, with typical asking rents around 20 percent below the regional average. Average asking rents for 4- and 5-Star units in the Las Vegas Strip are more than 55 percent greater than the submarket average. The 4- and 5-Star average asking leas are also more than HALF greater than the average for 3-Star systems, that make up majority of the stock in the area.

Luxury units in 4- and 5-Star residential or commercial properties comprise less than 5 percent of the location’s inventory, however that is beginning to change with the current shipment of the 295-unit Lotus houses. The arrival of new 4- and 5-Star systems rose vacancies for that sector and time will reveal if the need is there for these pricier units.

It seems that designers are positive about the need for high-end units in the Las Vegas Strip submarket though with more than 400 units under building and another 375 units proposed to begin this summer season, all of which are 4- and 5-Star.

Deal to Get ForRent to Include Millions of Tenants to CoStar'' s Apartments.com Network

CoStar Adding Scale in Online Apt. Rental Area, 110 Million United States Renters Spend Almost Half a Trillion Dollars on Lease Annually in Fast-Growing Consumer Market Sector

CoStar Group today revealed a contract to get ForRent from Virginia-based Dominion Enterprises as it continues to broaden its Apartments.com online house rental platform with the objective of noting each and every single apartment unit available for lease in the U.S.

Under the purchase arrangement, expected to close in the fourth quarter of 2017, CoStar will acquire the operator of 4 multifamily rental sites for $350 million in cash and $35 million in CoStar Group stock.

In addition to ForRent.com, ForRent’s sites include AFTER55.com, CorporateHousing.com and ForRentUniversity.com. The websites had roughly 17,000 advertised homes since June 2017and produced over 47 million sees and approximately 3.5 million distinct regular monthly visitors throughout the very first six months of 2017.

“110 million occupants in the United States jointly invest simply under half a trillion dollars a year on lease, representing one of the fastest growing consumer market sectors,” said CoStar Group Creator and Chief Executive Andrew C. Florance in announcing the arrangement. “Our dedication to the multifamily industry has been undaunted and evidenced by our investment in marketing, innovation and the curation and delivery of original material to develop the premier marketplace for leasing an apartment in the United States”

CoStar plans to run ForRent.com as a complementary online brand name while expanding direct exposure of its residential or commercial property listings across the Apartments.com network, increasing exposure by approximately 500% following the acquisition, according to Florance.

“Our research study, innovation and marketing initiatives have actually developed the most-visited house noting website, which in turn provides extraordinary levels of leads, leases and worth to our advertising consumers. We eagerly anticipate delivering that exact same worth to all tenants and advertisers on the ForRent network of websites,” Florance added.

CoStar made a big splash when it delved into the apartment rental listing space in 2014 with the acquisition of Apartments.com. The deal for ForRent will include scale to CoStar’s apartment or condo leasing organisation, allowing it to supply more direct exposure of rental homes to millions more potential occupants monthly by offering potential renters access to the most complete and accurate inventory of home availabilities. In addition, CoStar’s multifamily info and analytics stand to take advantage of the extra properties and information from ForRent.

CoStar previously this year obtained Southern California-focused Westside Rentals after including Atlanta-based House Finder in 2015. Scale is seriously essential in the online apartment or condo rental world because websites with the biggest number and most accurate listings have the tendency to attract the most renters, and apartment or condo owners desire their listings on the websites with the most traffic.

“Competitors is all about traffic,” Ronald Josey, senior analyst with JMP Group LLC told The Wall Street Journal. “The site with the most traffic usually wins.”

CoStar expects the extra scale will assist it complete for tenants and listings in the congested online rental area, that includes direct competitors such as RentPath Inc., and other big names, such as Facebook, Google and Craigslist, which likewise attract sizable traffic from people looking online for rental homes.

CoStar Group is the publisher of CoStar News