Category: News & Market Reports

Most New Units Since 1972: Developers Building Apt Units at Record-Setting Pace

Posted on by Sarah

A building boom. That’s what the U.S. apartment market is seeing this year, according to the latest research from Yardi Matrix.

In a report released in late August, Yardi Matrix said that construction crews will bring 420,000 new apartment units to the United States this year. That’s a 50-year high. According to Yardi, the last time apartment completions surpassed the 400,000-unit mark was in 1972.

And three Midwest markets are expected to rank among the busiest 20 major metropolitan areas this year when it comes to new apartment units: Nashville, Chicago and Minneapolis-St. Paul.

The New York metropolitan area is projected to deliver the most apartment units in 2022, beating out Dallas-Fort Worth for the top position for the first time since 2018. Overall, developers in half of the country’s top-20 metropolitan areas are now on an apartment building spree, with these metros expeced to hit their five-year highs in new multifamily construction this year.

“The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply chain issues,” said Doug Ressler, manager of business intelligence at Yardi Matrix, in a written statement.

What’s behind this construction boom? Yardi Matrix points to pent-up demand for multifamily units across the country. This demand has only risen as many renters hold off on buying homes as inflation and interest rates rise.

In the Midwest, Nashville ranks as the hottest market for new apartment construction. Yardi Matrix says that this Tennessee city will deliver 9,620 new aparment units in 2022, ranking it as the 13th busiest new-construction market.

Chicago will see 8,573 new apartment units by the end of this year. That places the city as the 16th busiest in terms of new multifamily construction. Expect 6,266 new apartment units in the Minneapolis-St. Paul market, making it the 19th busiest new-construction market in the country.

Texas, as usual, was well-represented. Yardi Matrix reported that the Dallas market will see 23,571 new apartment units in 2022, placing it second only to the New York metro market. Austin ranked fourth on Yardi Matrix’s list, with 18,288 new apartment units projected to be delivered here during the year, while Houston ranked fifth with an expected 17,759 new apartment units.

Yardi Matrix said that the Houston market will see the highest number of apartment completions that it has seen in the last five years. Austin climbed three positions on the Yardi Matrix list this year to inch past Houston.

Four-building Industrial Portfolio in the El Paso MSA Sells

Posted on by Sarah

JLL Capital Markets has closed the sale of a four-building industrial portfolio totaling 326,166 square feet in El Paso, Texas and Santa Teresa, New Mexico.

JLL marketed the portfolio on behalf of Blue Road Investments. STAG Industrial acquired the portfolio.

The portfolio comprises four-buildings of infill distribution space that is 100% leased to a dynamic tenant roster of diverse industries.

The buildings are located at 150 Earhardt Way, 9494 Escobar Drive, 9555 Plaza Circle and 9571 Pan American Drive within the North American borderplex, a combination of the Las Cruces and El Paso MSA’s in addition to Cuidad Juarez, Mexico. The borderplex is home to more than 2.7 million residents with one of the largest bilingual workforces in the world and the seventh largest manufacturing hub in North America, employing more than 275,000 individuals in the region. The portfolio features premier, infill logistics locations with immediate access to vital local and regional highways infrastructure including Interstates 10 and 25, Loop 375, UP Intermodal, Ysleta-Zaragoza International Bridge and the Santa Teresa Port of Entry. As a result, the properties are well positioned to ship across the U.S. within two to three business days.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Directors Dustin Volz and Trent Agnew, Directors Dom Espinosa and Zach Riebe, Associate Josh Villarreal and Analyst Jack Copher.

ProActive Commercial Lending Group, LLC, Offers Rehab Loans to Commercial Real Estate Investors in South Texas

Posted on by Sarah

SAN ANTONIO, TEXAS, UNITED STATES, August 17, 2022 /EINPresswire.com/ — ProActive Commercial Lending Group, LLC, a private lending company, has offered rehab loans to provide investors quick and easy capital for financing profitable real estate investment deals. The rehab loans come under the company’s “Fix & Flip” programs, designed to help investors apply and receive funds quickly for turning low-priced homes into high value properties for sale in the hot real estate market of South Texas. ProActive makes these loans possible by partnering with the country’s top private lenders and taking risks that no other bank or institution does.

ProActive’s Texas rehab loans enable investors to fund both the purchase and renovation of a ‘fixer-upper’ through a single mortgage, eliminating the need for multiple loans. The rehab loans have interest rates that range between 9.9% to 12% depending on certain conditional factors. The loans include interest-only mortgages in which the borrower is required to pay only the interest on the loan for a certain period. Their terms range from 6 to 12 months with provisions for extension on request. The loan-to-value of the rehab loans are set up to 80% after including repair value (purchase price + renovations budget combined). If borrowers work out their finances sooner than the terms of the loans, they can pre-maturely pay off the amount without incurring prepayment penalties.

Over the years, Texas has cemented its reputation as one of the best places in America for the rehab business, and this is what ProActive aims to promote with its ‘Fix & Flip’ program. With consistently low home prices, a healthy economy, increasing job opportunities, and a good rental market, South Texas rehab loan opportunities are very appealing for commercial real estate investors. Click to read more at www.einnews.com.

Eleven-property Self-storage Portfolio Sells

Posted on by Sarah

JLL Capital Markets announced today that it has closed the sale of an 11-property, best-in-class self-storage portfolio totaling 6,550 units in three high-performing real estate markets, the San Francisco Bay Area; Portland, Oregon; and Austin, Texas.

JLL marketed the portfolio with Pegasus Group, on behalf of the seller, Pegasus Group sponsored investments and facilitated the sale to SecureSpace Self Storage.

Operating under the Central Self Storage brand, the institutional-quality portfolio includes the following properties:

2100 A St., Antioch, CA
2721 Shattuck Ave, Berkeley, CA
324 S. Main St., Milpitas, CA
6880 Santa Teresa Blvd., San Jose, CA
900 Lonus St., San Jose, CA
13760 E. 14th St., San Leandro, CA
355 W. Hedding St., San Jose, CA
1323 NW 16th Ave., Portland, OR
8200 South I-35 Service Road, Austin, TX
14635 West SH-71, Bee Cave, TX
8327 S. Congress Ave., Austin, TX

Primarily concentrated within the San Francisco Bay Area, the portfolio was a truly unique aggregation of best-in-class real estate in a market that rarely sees scale of this type come up for sale, coupled with more recently built Class A facilities in the highly desirable growth markets of Austin and Portland. Comprising over 650,000 square feet, the portfolio was highly sought after by a mix of capital sources as investors continue to push allocations in real estate and particularly alternatives such as self-storage.

The JLL Capital Markets Investment Sales and Advisory team that represented the seller was led by Managing Directors Brian Somoza and Steve Mellon, Directors Matthew Wheeler and Adam Roossien, and Analyst Jake Kinnear.

Blackstone is Buying REITs Hand Over Fist

Posted on by Sarah

Summary

  • Blackstone Group has been on an aggressive REIT buying spree in the last few years.
  • The asset manager is buying so aggressively because REIT valuations are significantly below the private market valuations of their real estate.
  • We take a look at two attractive REITs trading significantly below their net asset values.
  • Looking for more investing ideas like this one? Get them exclusively at High Yield Landlord.

Asset management giant Blackstone (BX) boasts a portfolio of assets under management reaching nearly $1 trillion, made up largely of real estate. The asset manager partners with big money players like pension funds and insurance companies to provide strong returns and steady income.

Though Blackstone sometimes acquires individual real estate properties, such as The Bellagio in Las Vegas, it more often seeks opportunities to scoop up whole portfolios that will move the needle. This year, the company has set its sights, particularly on acquisitions of real estate investment trusts (“REITs”). Click to read more at www.seekingalpha.com.

What to Watch in the Texas Multifamily Sector

Posted on by Sarah

Uncertainty be damned. The multifamily market in a number of Texas cities continues to be strong – even “white hot,” depending on whom you ask.

“Dallas multifamily vacancies sit at roughly 5 percent with rents roughly 15 percent over pre-pandemic levels,” rental housing experts at Greystar told REDnews. “Dallas has also had considerable amounts of pipeline delivery, which have been absorbed at record levels during the past few quarters at over 25+ units per month despite rising rents.”

Austin, too, boasts one of the strongest multifamily markets in the state.

“It’s important to understand the supply/demand fundamentals,” said Marcy Phillips, vice president of real estate development for Ryan Companies. “Sometimes, there can be booms in other primary Texas markets. Austin has weathered this well and it appears there is a long runway as the MSA continues to grow.”

There’s no shortage of incentive to build here, according to Venkat Avasarala, founder of Stryker Properties. Click to read more at www.rednews.com.