The SFR Insider ? December 2023 ? Highlights from the IMN SFR West Conference + more
With over $6B in single-family rentals (SFRs) acquired, operated, and sold, Roofstock is a leading platform enabling institutional investors, real estate investment trusts (REITs), builders, and global asset managers to buy, manage, and sell SFR properties and build-to-rent (BTR) communities at scale.
Our institutional team represents buyers and sellers on the largest SFR portfolios in the market and has closed transactions totaling over 7,000 homes in the past 24 months. We prize ongoing collaboration with SFR owners and operators across the industry. We’re always available to discuss current market dynamics and offer our insights, irrespective of your current brokerage needs.
Roofstock’s Key Insights from the IMN SFR West Conference 2023?
Our team was on the ground at the IMN SFR West Conference earlier this month and had 50+ in-person meetings with some of the largest investors in the space. Check out our insights from those ongoing conversations below.
SFR investors are ready to get back to work in 2024
At the 2022 IMN conference last December, the overall feedback was that investors were pausing on most acquisitions due to interest rate hikes. And this was the prevailing sentiment for most of this year. In the back half of 2023, we’ve certainly seen an increase in activity. Some of the larger players are starting to acquire again, but the pace is still far below previous levels. But no one feels like they’re buying enough, and the inventory remains constrained. On the disposition side, nearly all the deals that are getting done have some sort of creative edge: an opportunity to prune and optimize a portfolio, unique assumable debt, or are concentrated in an interesting strategic market. Sales are still happening on the MLS, but we have seen an increase in portfolio activity as well. We expect this ramp up to persist over the next six months with a likely further uptick in transaction volume in the second half of next year.??
Looking for exclusive supply? Roofstock VIP brings together Roofstock’s entire universe of SFR inventory and makes it available to our high-volume acquisition partners. Send a note to [email protected] to learn more.
Investors are looking to secondary and tertiary markets for better yields
As investors look for strategic acquisition opportunities, some are focusing on secondary and tertiary markets like Alabama, Arkansas, and Kansas. Lower insurance costs in the South and Midwest have made these states attractive in contrast to higher-cost coastal regions. Investors are working to bolster returns, particularly with workforce housing, by operating hyper-efficiently from an NOI perspective. Although there's not as much demand in a market like Little Rock as there is in Atlanta currently, large SFR investors are taking a long-term view. If they can get in on the ground floor today, ten years down the line more groups might be interested in these regions––potentially offering outsized exit opportunities. ??
Interested in expanding to a new strategic market? Reach out to our team at [email protected]
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SFR owners need forward-looking asset management tools and partners
Our team heard from several large investors that they’re in need of true forward-looking asset management. Historically, property managers have often been de facto asset managers, not intentionally, but simply due to their proximity to the assets on the ground. Many institutional owners have thus been taking their cues from their PMs on how best to position their assets for higher returns, rather than utilizing technology and strategic partnerships to model future outcomes. Investors are increasingly recognizing the need to separate these two functions by letting property managers focus on day-to-day activities like leasing, collecting rent, and handling maintenance, while a separate asset manager is brought in to own the big picture. This more nuanced approach can help owners stay ahead of the curve by better tracking and optimizing financial performance across their portfolios.?
Looking for a cutting edge SFR asset management partner? Contact our team at [email protected].
Proactively Manage Your Institutional Portfolio of Assets with Roofstock?
At Roofstock, we offer a holistic approach to portfolio disposition across multiple channels to help you maximize returns. Our team can provide a comprehensive portfolio analysis based on your unique needs and current market conditions––as well as provide strategy and execution to achieve the best disposition outcome. In addition to our portfolio marketplace, Roofstock incorporates the following services into our sales execution strategy:?
Looking to employ a blended strategy with your portfolio? Reach out to our portfolio advisory team at [email protected].
Closed Portfolio Highlight: Project Finch?
Roofstock is excited to announce the recent closing of Project Finch, a portfolio of 121 single-family homes in the Dallas-Fort Worth, TX MSA. 81 homes were sold as a portfolio and 40 are selling via our S3 program on the MLS. This strategy maximized total returns to the seller over an efficient time horizon––as opposed to a whole portfolio sale or a whole MLS sale.
No Agency/Fiduciary Relationship: This newsletter, the information on the marketplace, and the information received from Roofstock employees is intended for informational and educational purposes only. It is not real estate, investment, or financial planning advice. Roofstock is not your advisor or agent unless expressly specified by Roofstock Realty, LLC. Please consult your own experts for advice in these areas.