April 2024 Review

Welcome!

Thanks for reading and welcome back. If this is your first newsletter, thank you for subscribing and wanting to follow the Rolling Rook story.

We are proud to keep you up to date with the future of our company, team, and industry as a whole. In this newsletter, we look to provide you with a snapshot of the day-to-day operations of RRC, give you the inside scoop of who we are as a team, and keep you up to date with pertinent information on the current real estate market.

If you want to learn more about how to start investing with us and get a deeper insight into deals on our radar feel free to follow and share this link with your family and friends who may also be interested!

Discover the Latest from RRC

Rolling Rook Capital has been diligently evaluating numerous deals flowing through our pipeline, carefully assessing their alignment with our rigorous criteria. Each opportunity undergoes thorough examination from all angles, maintaining a steadfast focus on our valued investors and their desired returns. Transparency is paramount across all aspects of our operations.

Amidst ongoing inventory constraints and rising interest rates in the multifamily housing market, it's crucial to conscientiously consider these factors when vetting deals meeting our standards. Reflecting deeply on this, we've made adjustments to pursue assets offering optimal returns for our investors, leading us to increase our focus on the self-storage market.

The Rolling Rook team is fully committed to identifying opportunities that maximize returns through effective strategies and tactics. Through regular Level 10 meetings and quarterly Rock reviews, we consistently pursue our objectives, promote transparency, and reinforce accountability within our team. Acknowledging the importance of establishing a robust operational framework, we remain dedicated to continual improvement to deliver secure and profitable investments to our community.

Market Updates

The Macro

Is Multifamily Recovering??

In his response to Scott Trench's analysis on the challenges facing multifamily real estate, J Scott presents a compelling counter-narrative. Despite acknowledging the recent tumultuous times in the sector, they argue that the picture painted by Trench may not accurately reflect its future trajectory.

The rebuttal focuses on dissecting key factors impacting multifamily, starting with cash flow, where the author contends that investors seek long-term growth beyond immediate cash returns. They highlight the potential for value appreciation amid the recent downturn. Additionally, the article addresses Scott's concerns regarding rent growth, expenses, interest rates, and cap rates. Contrary to Trench's pessimism, the author presents data suggesting positive trends, including projected rent increases, moderated expense growth, anticipated interest rate reductions, and a likely decrease in cap rates due to increased investor demand. The analysis also factors in the influence of government and lender interventions to mitigate foreclosures, adding nuance to the multifamily market outlook for 2024 and beyond.

For further details, you can access the complete article here.

The Micro

Midwest Multifamily

In an article featured on REJournal titled "Midwest spotlight: A look at multifamily performance," Finley Askin highlights the continued prominent growth that self-storage experiences in the Midwest.??

The multifamily real estate market in the Midwest stands out as a beacon of stability and opportunity amidst shifting dynamics. With its diverse economy, growing population, and stable housing market, the region offers investors a compelling destination for long-term growth. From the bustling streets of Chicago to the charming neighborhoods of St. Louis, the Midwest presents a myriad of investment opportunities, driven by record-breaking rent growth and robust absorption rates.

Despite broader market fluctuations, the region's resilience shines through, supported by favorable regulatory frameworks and strategic development initiatives. Savvy investors navigating the Midwest's multifamily landscape can capitalize on emerging trends, mitigate risks, and maximize returns by leveraging the region's strengths and implementing sound investment strategies. As the heartland of America continues to thrive, so too will those who recognize its inherent value and seize the opportunities that lie ahead.

You can read the entire article here.?

New With RRC

Recently, we have dedicated significant resources to thoroughly exploring a specific market, focusing our attention on the self-storage asset class for a multitude of reasons. This strategic shift was undertaken to gain deeper insights into our next investment endeavor, enabling us to operate this deal with maximum efficiency and deliver optimal returns to our investors, who entrust us with their valuable capital.

Ongoing discussions with potential cosponsors aim to elevate the production rate and initiate a more robust deal flow. Despite a relatively slow year for many real estate investors, Rolling Rook is confident that persistent work on systems and adherence to set criteria will yield exciting deals in 2024. The commitment to not compromise on standards remains a key aspect of the strategy for the coming year.

We express our gratitude to all our readers and hope you will continue to enjoy our content. As we embark on our journey towards achieving our goals in 2024, we invite you to follow our progress and stay engaged with the exciting developments ahead. The course is set, and we are enthusiastic about pursuing our objectives. Thank you for your continued support!

Investment Philosophy

Our investment strategy centers on targeting B to C-class properties, identifying those with inherent value-add potential through strategic renovations and operational enhancements. Our market selection involves a meticulous analysis, integrating distinctive trends that align with our accumulated expertise from prior service. Additionally, we actively cultivate an off-market pipeline, consistently evolving, with the primary goal of maximizing returns for our esteemed investors.

#FortifyYourFuture