Blake Investment Advisors

The final numbers are in, and in 2024, multifamily builders started 254,100 fewer units than they completed. That's the second-biggest deficit on record (behind only 1974), and yet another clear indicator that new apartment supply will plunge by 2026. Additionally, total multifamily starts in 2024 came in lower than any year since 2013 -- when the country was still pulling out of the Great Financial Crisis. At the same time, completions in 2024 tallied higher than any year since 1974. So we're clearly at/around the supply peak, and headed downhill. Just another data point to support the mainstream investment thesis these days of plummeting supply, even as demand tailwinds continue to look strong. If that thesis plays out, it could point to rebounding apartment rent growth -- perhaps as soon as this year in some markets. As I tell people all the time: Forecasting is an inexact science, but supply is the easiest variable to project. It's just starts pushed forward, and apartment starts are way down -- not just from recent peaks, but below pre-pandemic norms, too.

Blake Investment Advisors?has published our 2024 Q4 Multifamily Metrics research reports for King, Pierce, & Snohomish County. Click here to view -> https://lnkd.in/g-RhyAbK Reach out to Gabe Blake & Josh Blake with any questions.

JUST CLOSED | East Wenatchee Portfolio | 12 units | $2,625,000 ? ? Blake Investment Advisors’ is excited to announce the closing of Columbia Square & Ridgeview Court, two properties that comprise 12 units, consisting of large two-bedroom units averaging 1,050 SF in the East Wenatchee submarket.? ? This transaction successfully completed a 1031 exchange for a Bellevue family who engaged BIA to facilitate the sale of their 9-unit apartment building in Bellevue, WA. Their goal was to reinvest their capital in properties east of the Cascades to benefit from higher cap rates and improved cash flow. Additionally, they prioritized acquiring newer construction properties with financial operating leverage to support professional management. The two acquired properties, built in 1994 and 2001, collectively generated cash flow that doubled the annual income from the property they sold and will now be professionally managed. By securing three 30-day extensions on the sale of their "down-leg" property, our clients successfully closed on their exchange properties just five days after completing the sale in Bellevue. ? ? We would like to give thanks to Chelsey Parra & Team Parra, Peter Johndrow, and Kelly & Debbie Yates, for their professionalism and urgency in getting this across the finish line.? ? To request a complimentary evaluation of your apartment investment, contact BIA today. Selling Brokers: Gabe Blake & Josh Blake

America's rental housing is older than ever. The median rental housing unit was built 44 years ago. That means most U.S. rental housing units were built prior to the end of the Cold War. Nearly 4 million renter households "live in physically inadequate units," according to the Harvard Joint Center for Housing Studies. The Federal Reserve Bank of Philadelphia estimated it'd cost $51.5 billion to address those physical deficiencies, but that estimate is probably woefully conservative. New York City estimated it'd cost $78 billion just to fix the city's own eroding public housing stock. Implications? 1) From a policy standpoint: This is why it's critical to focus on preservation of BOTH the affordability -- and -- physical integrity of America's aging apartments and single-family rental homes. If you only focus on one of the two, it's at the expense of the other. 2) From an investor standpoint: There are very real value-add opportunities out there, but not all will make sense without subsidies of some type. Location, building condition and current rent roll are, of course, massive variables. 3) From a developer standpoint: There's a real case for new supply EVEN WHERE/WHEN POPULATION GROWTH IS STAGNANT. Some cities lose more units to obsolescence than they build in a given year. And sometimes the older units aging poorly are located in neighborhoods that time left behind, requiring new housing in the neighborhoods where people want to live. This impacts all price points -- from affordable housing to Class A+ apartments. What are other implications I missed?

JUST CLOSED | Chez Revella | 9 units in Bellevue, WA | $2,300,000 The Blake Investment Advisors’ Multifamily Team is proud to announce the successful closing of Chez Revella at 14204 Lake Hills Blvd for $2,300,000, a?heavy?value-add opportunity located in the coveted city of Bellevue. Constructed in 1969, the property was 55% vacant at closing and required extensive improvements, including new plumbing, electrical systems, roof replacement, and other interior and exterior renovations?with an approximate construction budget of $100k per unit.? Capitalizing on deep development experience,?Blake Investment Advisors underwrote the?offering?projecting significant?developer?profit, which spurred strong interest resulting in 25 investor tours and yielding 10 competitive offers. The best and final offer accepted was a non-contingent cash offer, including three 30-day extensions to closing, offering the seller safe timelines to identify their 1031 exchange property, which was constructed in 2001. The Puget Sound apartment market is rapidly changing.?BIA expects to see rates subside from?the?near current cycle highs?of?today,?in 2025.?The Puget Sound apartment markets are seeing the delivery of new apartments dwindle combined with new construction starts equaling the lowest levels since 2013 coming out of the great recession, promising pricing power for apartment owners in 2025 and beyond. Astute investors will see through current market softness/negative leverage in anticipation of a new wave of sustained rent growth. To request a complimentary evaluation of your apartment investment, contact BIA today to receive your property valuation. Listing Brokers: Gabe Blake & Josh Blake

Real Page states that the Supply and Deliveries of Apartments in the Seattle area apartment market has peaked. With construction starts, equaling the lowest levels since 2013 coming out of the great recession, this indicates a large deficit in apartment supply going forward in Puget Sound Apartment Markets. Astute investors will see through current market softness/negative leverage for what it is highly likely to come in the near future. #RentGrowth

JUST LISTED: 23 Units in First Hill - Seattle | Thorough Interior and Exterior Renovation | Highrise Zoning | Naturally Occurring Affordable Housing Blake Investment Advisors is excited to announce the exclusive offering of Columbia Place, a 23-unit turn-key investment opportunity in the heart of Seattle's coveted First Hill neighborhood. Please reach out to listing brokers Gabe Blake & Josh Blake for more details. Register for OM here: https://lnkd.in/d7f7_tjV

??King County multifamily transaction volume surges 26% from Q2 to Q3 2024?? Blake Investment Advisors?has published our 2024 Q3 Multifamily Metrics research reports for King, Pierce, & Snohomish County. Click here to view -> https://lnkd.in/g-RhyAbK Reach out to Gabe Blake & Josh Blake with any questions.

JUST SOLD: North Admiral Triplex | 3.74% Cap Rate | $1,160,613 The Blake Investment Advisors’ Multifamily Team is excited to announce the sale of the North Admiral Triplex in a true "A" location, just minutes away from Alki Beach in the alluring North Admiral submarket of West Seattle. Deal challenges included; a sinking foundation requiring concrete lifting solutions to create level floors, non-conforming plumbing issues requiring retrofit, and HVAC repairs. BIA helped the buyer navigate the inspection report findings by having multiple contractors and tradesmen visit the property and provide bids for the prudent repair items. The result of having in-hand quotes for the most important repair items, allowed both buyer and seller to negotiate with facts creating a win-win for both sides.?The buyer performed a 3-week close with an all-cash offer. BIA represented both the buyer and the seller. Please reach out to brokers Gabe Blake & Josh Blake for questions and access to our upcoming inventory.

JUST SOLD | Proctor Manor | 1.44% Cap Rate | $825,000 ? The Blake Investment Advisors' Multifamily Team?is pleased to have arranged the sale of Proctor Manor,?a 5-unit property with irreplaceable charm in Tacoma's desirable North End. The property sold at 100% of the list price to an exchange buyer who owns several like-kind properties in the market. Deal challenges, including well-below-market rents resulting in an in-place cap rate of 1.44% at the sale price, were overcome by clear support of market rents and demonstration of value creation, which is significant. The new buyer plans to implement a schedule of rent increases to capture said value creation. Brokers: Gabe Blake & Josh Blake