Life Bridge Capital Weekly Investor Update: Week Ending December 17, 2022
?Life Bridge Capital Weekly Investor Update - December 17, 2022:
The Latest in Commercial Real Estate (CRE), Economy & Markets
MARKET INDICATORS SNAPSHOT
Weekly:
Mortgage Rate (30-Year Fixed): 6.31% (as of 12/15)
Monthly:
Existing Home Sales: -5.9% (October 2022)
New Residential Sales: +7.5% (October 2022)
Median Sales Price for New Houses Sold: $493,000 (October 2022)
Construction Spending: +9.2% YoY (October 2022)
New Residential Housing Starts: 1.425 million (October 2022)
New Residential Housing Completion: 1.339 million (October 2022)
QUARTERLY
Homeownership Rate: +66.0% (3Q22)
Rental Vacancy Rate: +6.0% (3Q22)
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Sources: NAR, BLS, Federal Reserve Bank, MBA
Note: Rates listed are estimates and may not reflect actual rates depending on term, sponsor location, and other factors involved.
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TOP 10 STORIES OF THE WEEK
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10. Multifamily development and storage unit construction now go hand in hand
A RentCafe report observed that nearly 60% of the country’s top 100 metros are building storage units at a higher rate than the national average. These areas - specifically Dallas, New York, and Houston - have experienced a growth in storage space development while also expanding their number of apartment complexes in the last 10 years. A total of 20 million square feet of storage space was built in Dallas while its multifamily construction delivered 199,000 units in the past decade. RentCafe explained that the correlation behind both developments is due to popular metros hosting renters who are occupying smaller spaces and needing additional storage, especially in metropolitan areas where many renters have relocated.
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9. Two multifamily developments planned in Seattle intersection
Multifamily developers NASH Holland and Deal Investments both have announced new apartment development projects. NASH Holland purchased 1.2 acres of land in Northwest Market Street and 24th Avenue Northwest in Ballard District worth $28.7 million, which will be the site of a seven-story apartment complex offering 238 units. On the other hand, Deal Investments bought three parcels for $13 million, where an eight-story multifamily property with 180 units will be constructed. Ballard apartments are in high demand today, according to Kidder Matthews.
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8. Miami-Dade County is the top rental market in the US
A study by RentCafe revealed that Miami-Dade County topped the rankings of the country's hottest rental markets of the year with only 24 average vacant days and a 97.5% apartment occupancy rate. The area also boasts an average of 32 prospective renters per unit with a lease renewal rate of 75%. Trailing close behind are Grand Rapids, MI; Orlando, FL; Harrisburg, PA; and North Jersey, NJ.
领英推荐
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7. Abandoned high school building converted by millennials into a 31-unit apartment building
CNBC featured this week a remarkable project by real estate professionals who bought an abandoned high school building for only $100,000 and converted it into an apartment building. Jesse Wig and Adam Colucci, both in their mid-thirties, developed the property for two years and took a risk on the 50,000-sq ft area that featured large hallways and staircases. A total of 31 apartments were delivered, consisting of one-bedroom and two-bedroom units. In just six months, the building has already reached 100% occupancy.
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6. Silverstein Properties launched a new fund to acquire and convert old office buildings
New York City developer Silverstein Properties announced that it is launching a new fund aiming to raise $1.5 billion to acquire and convert older Manhattan office buildings. The company already acquired a 30-story office tower at 55 Broad Street for apartment conversion. CEO Marty Burger spoke to Bloomberg on the possibility of further expanding their portfolio in other markets, such as Washington, D.C., Boston and the West Coast.
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5. Passco Companies closes multifamily deal in Panama City Beach, FL.
Irvine, CA-based real estate investment firm Passco Companies announced its successful purchase of Sea Sound Apartments, a newly constructed 300-unit, Class A multifamily property located in Panama City Beach, FL. The project features four four-story buildings and offers easy access to retail centers and entertainment destinations. CBRE, which represented the seller, observed that the multifamily market in Florida has become much stronger since the onset of the pandemic.
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4. ULI: multifamily housing is rebounding
Hilke Nijmeijer, a member of one of Urban Land Institute's housing-related product councils, has noted the improvement in multifamily housing development this year. She states, "There was a bit of stabilization because of less immigration during the height of the pandemic, but that’s changing back again. We still see demand for multifamily housing growing in the largest cities, and we expect that trend to continue. The same goes for smaller cities as well, where there may be even more room for capital growth." She also noted more strategies by institutional investors being rolled out to create affordable housing.
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3. Chicago's Northwest Side multifamily project finds buyer in only one day
Quantum Real Estate Advisors, Inc. has brokered the sale of a 10-unit multifamily building at?Chicago’s Northwest Side within only a day of marketing. The property sold for $1,975,000 - this offer was at 98.75% of the asking price and had no financing contingency. Chicago's multifamily sector remains one of the most in-demand, according to CBRE.
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2. Atlanta is the top real estate market to watch in 2023
Lawrence Yun, NAR chief economist and senior vice president of research, forecasts that Atlanta will be the top metro to watch in the coming year as its real estate market will be in high demand. With its highest potential for growth in 2023, Atlanta was cited for its housing affordability, robust job market growth and growing population. Other metros that made the list include Raleigh, NC; Dallas-Fort Worth-Arlington, TX; and Fayetteville-Springdale-Rogers in AR and MO.
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1. More multifamily units will be delivered in Sun Belt markets
Jamison Manwaring, CEO and co-founder of Neighborhood Ventures spoke to Forbes and gave his optimistic prediction on the multifamily industry in the coming year. He stated, "Additional supply of new construction multifamily units will be delivered throughout 2023, mostly in Sun Belt states, helping to ease housing costs. These high-growth areas have suffered from housing shortages and new supply has been slow due to materials and labor shortages and Covid-related delays. But many of these projects will be delivered during 2023 adding thousands of additional units."
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