SPI Advisory invests in property in the suburbs south of Austin

Posted on by Mia Goulart

SPI Advisory (SPI) and its 1031 partners finalized the acquisition of The Bradford, a 264-unit, Class A- institutional-quality, value-add apartment community built in 2010 in the high-growth suburb of Buda, Texas, just a 20-minute drive south of Downtown Austin. This acquisition highlights SPI’s continued expansion in the submarket as one of Hays County’s largest landlords with nearly 1,100 units owned and operated between Buda & Kyle.

The area within a three-mile radius of The Bradford experienced a 159% increase in population over the past decade but Hays County has been identified as one of the fastest-growing counties in both Texas and the nation (U.S. Census Bureau; The Greater Austin-San Antonio Corridor Council, 2022).

Previous ownership upgraded a handful of the property’s existing units with premium finishes, appliances, and more contemporary design elements. SPI will continue programmatic upgrades to a handful of units per month for the next two years but intend to leave 50% of the property with affordably priced “classic” units to serve a broader range of prospective tenants long term. 

Colliers Mortgage closes Fannie Mae loan for the acquisition of The Bradford in Buda, Texas

Posted on by Mia Goulart

Fritz Waldvogel of Colliers Mortgage closed a Fannie Mae loan for a repeat client for the acquisition of a market-rate multifamily property in Buda, Texas, The Bradford.  Community amenities at the 264-unit gated community property include concierge service, 24-hour fitness center, carport parking, business center, clubhouse with free wi-fi, resort style swimming pool and sundeck and gourmet coffee bar.

The loan carries a five-year term and was arranged for transaction sponsor, SPI Advisory.

Eagle Property Capital announces disposition of multifamily asset in DFW

Posted on by Mia Goulart

Eagle Property Capital Investments, LLC (EPC), a vertically integrated real estate investment manager focused on the value-add multifamily space, announced the disposition of Colinas Ranch Apartments, a 160-unit apartment community, located in Irving northwest of Dallas-Fort Worth, Texas.  The Property was acquired by EPC Multifamily Partners IV, LLC (Fund IV) and RealtyMogul 89, LLC in October 2018.

Colinas Ranch Apartments, located at 3203 W Walnut Hill Lane in Irving, was built in 1971.  EPC successfully implemented a thorough repositioning strategy that substantially improved the profitability of the value-add property.  The strategy included upgrading the apartment interiors, existing common areas and amenities, adding new amenities and services as well as implementing water and energy conservation programs. In addition, the property benefited from operating efficiencies that reduced controllable expenses by being operated together with Grand Riviera, a neighboring property.

Two Woodlands office buildings trade to private asset management firm

Posted on by Mia Goulart

JLL Capital Markets has closed the sale of 10200 Grogans Mill Road and 1610 Woodstead Court, two office properties totaling 153,294 square feet in The Woodlands, Texas.

JLL represented the seller, and procured the buyer, a privately held asset management firm.

The two-property portfolio is positioned within The Woodlands, one of the nation’s premier master planned communities located 27 miles from Houston. The area is home to seven Fortune 500 corporate headquarters, boasts top-quality schools and residential neighborhoods, is home to more than 11 million square feet of retail and offers recreation options, including 220 miles of connected hike and bike trails.

10200 Grogans Mill Road and 1610 Woodstead Court sit on a total of 9.85 acres and are 66.7% leased overall. The tenancy is comprised of a diverse mix of industries, including finance, technology, legal services, oil and gas, consulting and logistics.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Director Rick Goings and Managing Directors Marty Hogan and Kevin McConn.

  • 10200 Grogans Mill Road
  • 1610 Woodstead Court

Investors take note: Chronic underproduction of housing in the U.S. puts workforce rental housing in the spotlight

Posted on by Mia Goulart

Investors looking for attractive returns in the U.S. housing market need look no further than workforce rental housing. A chronic shortage of housing in the country, exacerbated by onerous zoning, land use, and environmental regulations, labor shortages, and demographic shifts, has created a prime opportunity for investing in this segment.

The Supply Shortfall
Since 2017, the shortage of housing in the U.S. has been growing at an alarming rate, with estimates now ranging from 3.8 to 6.8 million units. The lack of supply, particularly in the workforce housing sector, has resulted in historically low vacancy rates and record-high rent and home prices.

Between 2010 and 2021, household formation exceeded net housing deliveries by nearly 4.8 million units leading to a decrease in vacancy rates, making housing less affordable and hindering household formation.

To close the housing gap, at least 3.4 million units are needed within five years, and the rate of new unit delivery needs to increase by approximately 71%. This shortage is evident in the downward trend of the ratio of total housing inventory to the total number of households, which has been below 1 (meaning there is at least one household unit for every household) since Q4 2017.

The shortage also disproportionately affects younger generations, as the median age of household heads has increased from 49.0 in 2008 to 52.1 in 2021.

The current combined vacancy rate for all for-sale and for-rent housing in the US is just 2.5%, with rent and home prices growing annually by an average of 11.1% and 18.9%, respectively.

The Growth and Impact of Zoning, Land Use, and Environmental Regulations on Housing Production
Strict local zoning and environmental laws limit affordable housing by increasing development costs by 32% for multifamily projects. This reduces supply, forcing developers to charge higher prices.

Increasing regulations worsen the housing shortfall, as evidenced by a negative correlation between regulatory cases and permits issued per state. From 2006 to 2018, 49% of U.S. metropolitan areas increased land use regulations. Each regulation in a California city raises the cost of owner-occupied and rental housing by an estimated 4.5% and 2.3%, respectively.

The Workforce Rental Cohort
The shortage of new workforce housing is hurting those earning between $45,000 and $75,000 annually the hardest, as developers typically focus on either luxury apartments or affordable housing. This underserved segment has higher rents and reduced vacancies, making it an attractive investment opportunity.

Private real estate funds focused on workforce rental housing have historically returned an average net IRR of 16.4% between 2009 to 2019, outperforming luxury housing-focused funds’ average net IRR of just 10.7%. While past performance is not indicative of future results, the favorable demographic and supply/demand fundamentals make the workforce multifamily sector a positive outlook for investors.

The chronic underproduction of housing in the U.S. has made workforce rental housing an attractive and sustainable target for investment. As demand goes unmet, prices rise, and this is a trend that is set to continue in the coming years. Investors looking for opportunities in the U.S. housing market should consider investing in the workforce rental segment for durable cash distributions and sustainable capital value appreciation. 

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Kingbird Investment Management Senior Managing Director Kenneth Munkacy is responsible for creating and overseeing Kingbird’s investment strategy, acquisitions, joint ventures, and investment management platform in the U.S. Munkacy has over 33 years of global real estate experience and has been involved in all aspects of real estate including acquisitions, development, finance, portfolio and asset management. Munkacy has led full service real estate investment and operating companies in 12 countries and 23 states and has overseen over $3 billion in transactions.

Weitzman Promotes Tanenbaum to Vice President

Posted on by Jordan Jensen

DALLAS—Corbin Tanenbaum has been promoted to Vice President with the Dallas-Fort Worth office of Weitzman, one of the largest retail-focused commercial real estate services firms based in Texas. The promotion recognizes Tanenbaum’s success in his role handling retail and mixed-use project leasing, investment sales, building disposition and general brokerage in the Dallas-Fort Worth area. Tanenbaum has represented several notable clients, including Catalyst Urban, ARCTRUST, Alamo Manhattan, Centurion American, Essential Properties and Bolour Associates.

Tanenbaum is a member of the International Council of Shopping Centers and the Retail Brokers Network. Tanenbaum received a Bachelor of Business Administration in Banking and Finance from the University of Georgia in Athens, Georgia.

Cole Martinez Tenant Advisor at HPI Tenant Advisors

Posted on by Jordan Jensen

HPI Tenant Advisors is thrilled to welcome Cole Martinez to our growing team! Having spent the previous 3+ years running sales efforts for the WGC – Dell Technologies Match Play, Cole brings his strong work ethic and competitive spirit to the commercial real estate industry. As a member of the Tenant Advisors team, Cole exclusively represents tenants with their office and industrial facility needs.