The Top 4 Cities We Have Our Eyes On

At Penn Capital, we focus on investing in undervalued multifamily markets that fly below the institutional radar.

Over the past several months, we have been conducting thorough research, utilizing our proprietary system to uncover markets that are poised for growth and diligently looking for hidden gems within each city.

At this time, we want to unveil our Top 4 up-and-coming Metropolitan Statistical Areas (MSAs) and share why we are keeping a close eye on these cities:

1) Greensboro, North Carolina

With its outstanding job growth, strategic location, and low cost of living, Greensboro, North Carolina presents a bright economic future.

According to Roofstock, Greensboro experienced a population growth of 11% over the last ten years and Guilford County is expecting another 20% population growth over the next decade.

The city has been making great efforts to boost the job market. To quote Marvin Price with the Greensboro Chamber of Commerce, "We have over 100 projects we’re working on currently that would easily be over $20 billion in capital investment and roughly over 20,000 jobs.” Home to the headquarters of major companies including Honda Aircraft Company, Mack Trucks, and Wrangler, Greensboro has been ranked by WalletHub as one of the best cities for jobs in North Carolina.

Additionally, Greensboro presents a dynamic cultural landscape featuring a variety of attractions, such as theaters, art galleries, music festivals, and museums. Renowned for its abundant parks, green spaces, and outdoor recreational opportunities, the city draws in both residents and visitors We are currently under contract for a multifamily property in the Greensboro MSA, and we look forward to sharing the PPM and other details as we continue to work on this deal.

2) Tucson, Arizona

With major companies such as Amazon, Geico, and Raytheon looking to expand into the area, Tucson, Arizona is another up-and-coming city that we have been extensively looking into.

The city's proximity to the University of Arizona ensures a consistent demand for housing, and in fact, 49% of households are renter-occupied, according to RentCafe.

Tucson's favorable weather, boasting over 350 days of sunshine annually, enhances its appeal to residents, and the city offers many outdoor activities, including camping, horseback riding, and mountain biking. With these conditions attracting a growing workforce and steady student population, Tucson emerges as a promising destination for multifamily real estate investment, offering both stability and potential for growth.

3) Lexington, Kentucky

Lexington, Kentucky is secretly emerging as a prime destination for real estate investment. The city is fostering a diverse pool of job opportunities, most notably in the healthcare and technology sectors, and is headquartered by several major companies including Tempur Sealy International, Lexmark International, and Valvoline.

Home to the University of Kentucky, the city also has a steady student population, leading to a heightened demand for places to rent, rather than own.

Overall, with its thriving economy, growing population, and cultural significance, Lexington presents an enticing opportunity for investors seeking to capitalize on multifamily real estate.

4) Huntsville, Alabama

It’s no surprise that Huntsville, Alabama makes our list again.

Having already acquired 7 different properties in the area and exited on 4, we believe that Huntsville’s growth is still only getting started.

Lured in by various tax incentives and a lower cost of operating, some of the largest companies in the world including Toyota, Facebook, Mercedes Benz, NASA, and Google have invested billions of dollars in the area. Consequently, these jobs attract a population of young, well-educated professionals with a high average salary. People in this demographic are often moving from larger cities where housing supply is limited and ultimately they bring along a demand for premium-quality housing.

As a result, Penn Capital has been helping to meet this demand by adding value to acquisitions in the Huntsville MSA.

Ready to learn more about investing in these undervalued markets?

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