Features

Healthy Occupancy Hinges on Winning the Apartment Amenities Arms Race

by Taylor Williams January 1, 2020

When deciding where to live, the choice isn’t always a matter of finding the newest property on the market. Oftentimes it comes down to which property can most effectively meet and exceed your expectations as a renter. For example, these two “blind” multifamily rental listings identified below are within the same five-mile radius in Upstate New York. They’re both firmly in the luxury rental space and offer in-unit washers and dryers and dishwashers. In other words, they’re practically identical in terms of location and necessities. Can you guess which of the two commands a higher rental price and much more interest from renters? Property A: Built in 2018, average unit size of 1,180 square feet, two bedrooms, two bathrooms, community fitness center, dog park, private patio. Property B: Built in 2010, average unit size of 1,395 square feet, two bedrooms, two bathrooms, community fitness center, dog park, shared outdoor and indoor spaces. If you guessed property B, you’re right. You’re also probably wondering if you’ve heard the full story about that rental property and its amenities. That community fitness center? It’s filled with new equipment from Wellbeats and Peloton. That dog park? It’s a full-on playground for pets, with agility …

January 1, 2020

How E-Commerce Has Impacted Industrial Real Estate

by Taylor Williams December 27, 2019

Over the past decade, the way we shop has undoubtedly changed. With the evolution of e-commerce, subsequently, so has industrial real estate. Increasing delivery speeds and near-immediate access to goods have become top priorities for consumers, pushing retailers and their supply chains to follow suit. The demand for warehouse space in close proximity to major highways and transit hubs has steadily increased. These locations allow for faster and more efficient deliveries to the end user. Over the past five years, the industrial real estate sector has experienced healthy growth while other sectors have struggled to maintain demand, further showcasing the correlation of growth to the rise in e-commerce. As online retailers continue to competitively decrease their shipping windows — think Amazon’s and Walmart’s one-day shipping policies — demand for last-mile delivery facilities has risen. The last mile refers to the final movement of goods from a warehouse or distribution center to a final destination. The need for modernized, last-mile facilities has increased with the requirement to meet consumer demands and increase shipping speeds. Shifting Expectations Throughout the last few years, when it comes to shipping and delivery time frames, customer expectations have significantly increased. Ten years ago, it was expected …

December 27, 2019

Development Features

HPM Executive: Preconstruction Services Help Tamp Down Construction Costs

by Alex Tostado December 20, 2019

Del Buck, vice president of preconstruction at Hoar Program Management (HPM), an affiliate firm of Birmingham, Ala.-based Hoar Construction, has the challenge of saving construction costs in the face of a significant labor shortage that’s hobbled the construction industry. According to research from Federal Reserve Economic Data (FRED), 1.5 million construction jobs were lost during the Great Recession. While the industry is still working to fill the void, labor and materials costs have increased dramatically. Turner Construction Co. reports that construction costs have increased 5.9 percent since 2018. Buck emphasizes the importance of developers and owners not accepting the “false premise” that construction costs are outside of their control. Instead, he says that costs can be salvaged using third-party project management firms during the planning stages. These firms can provide preconstruction services, which help stakeholders realize the scope, costs and schedule of a project before breaking ground. Outside of cost savings on the front end, he says owners and developers can also benefit from program management firms as they can help mitigate costs once construction is already underway. Buck spoke with REBusinessOnline about the ever-changing construction industry, outlining his firm’s creative workarounds for lowering costs. What follows is an edited …

December 20, 2019

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Multifamily Developers, Investors Reveal Favorite Southeast Markets

by John Nelson December 18, 2019

ATLANTA — Multifamily developers and investors keep an ever-watchful eye on job and population growth in their target markets. In the Southeast, where several metros are seeing gains in those demand generators, which markets stand out? That was a central question posed during the regional panel discussions at France Media’s 10th annual InterFace Multifamily Southeast conference. The event took place Tuesday, Dec. 3 at The Whitley in Atlanta’s Buckhead district. The event drew 384 attendees in the multifamily real estate sector. The short list for the various speakers’ favorite markets include the usual suspects, namely Atlanta, Orlando, Tampa, Charlotte and Raleigh. These markets all have a recent track record of strong employment growth, which is traditionally a reliable indicator of multifamily demand. Norm Radow, CEO of Atlanta-based The RADCO Cos., warned though that not all jobs are created equally, which has long-term implications for the new apartment communities coming on line. “The majority of the people hired are on the low end of the wage scale and the few making a lot of money are tipping the average up,” said Radow during the conference’s Atlanta Market Update panel. “The workers are there to rent them, but we’re building a product …

December 18, 2019

Features Multifamily Seniors Housing

Variety, Flexibility on the Menu for Seniors Housing Dining

by Alex Tostado December 17, 2019

Historically, seniors housing dining services were known for serving simple proteins and side items purchased from an outside distributor, which would be prepared in bulk and served all at once in a communal dining room. But variety and novelty are quickly becoming key selling points for today’s incoming senior population, and communities are scrambling to keep up with the demand. “We have a tsunami of developers and contractors building new facilities across the United States, and full-service dining is one of the most important features that prospective residents look for,” says Victoria Albert, vice president of marketing at Boston-based dining vendor Unidine. “The baby boomers are different from their parents. They are more worldly and experimental, and they want opportunities to try different cuisines.” Newer dining programs allow service teams to think more like an industrial kitchen, planning their menus around seasonal flavors and cross-utilizing the same ingredients for a variety of dishes. The result is a higher quality of food service with a thoughtful application of resources and marketing. “The environment of the business is shifting to operate more like restaurants and market more to friends and families of guests,” says Harris Ader, founder of Senior Dining Association, an …

December 17, 2019

InterFace Multifamily Southeast Operations Panel

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Multifamily Operators Detail Top 20 Ways to Boost NOI

by John Nelson December 12, 2019

ATLANTA — It’s something that everybody wants: Increased cash flow. Multifamily operators gave a tutorial on the 20 best ways in which their firms are boosting net operating income (NOI) during France Media’s 10th annual InterFace Multifamily Southeast conference. The event took place on Tuesday, Dec. 3 at The Whitley hotel in Atlanta’s Buckhead district. The full-day conference attracted nearly 400 multifamily professionals from across the Southeast. Ed Wolff, chief revenue officer for multifamily lease insurance firm LeaseLock Inc., moderated the operations discussion. The panelists included Sharon Hatfield, chief operating officer of CF Real Estate Services LLC; Lisa Taylor, senior managing director of client services at Greystar; and Marcie Williams, president of RKW Residential. The discussion was bifurcated between how these operators are driving NOI by increasing/creating revenue and minimizing expenses. Hatfield said that operators can experience the most immediate results by focusing on the revenue stream at the property level. “In today’s challenging environment, it’s better to try to approach the revenue side than it is expenses,” said Hatfield. “Revenue can impact the value of the asset so much.” The panelists’ best revenue-boosting methods ranged from the practical to the futuristic. Greystar’s Taylor said that her firm has partnered …

December 12, 2019

Development Features Georgia Multifamily Southeast Southeast Feature Archive

InterFace Design Panel: Multifamily’s Luxury Standards are Shifting Away from Amenities to Unit Interiors, Services

by Alex Tostado December 11, 2019

ATLANTA — Multifamily developers’ definition of luxury is constantly changing, causing general contractors and architects to plan for the unforeseen and possibly change up designs when it comes to unit finishes, community amenities, parking structures or retail space within the communities they help build and design. “A big component of luxury now is creating an environment for community and location within the social hub of the market,” said B.J. Laterveer, principal at Alpharetta, Ga.-based Dwell Design Studios. “The amenity spaces got so big and cavernous, but now they are rightsizing.” Laterveer’s comments came during a panel titled “Developing Apartment Buildings for Today, but with an Eye on Tomorrow: An Architectural, Design & Construction Update,” at the 10th annual InterFace Multifamily Southeast conference hosted by France Media. Joining Laterveer on the panel were Paul Bertozzi, president and CEO at Live Oak Contracting; Ben Hudgins, principal at Brock Hudgins Architects; JoAnn McInnis, vice president at Carlyn & Co. Interiors & Design; Royce Elliott, chief operating officer at Juneau Construction; and moderator Nick Olaya, director of asset management at Alliance Residential. The conference took place Tuesday, Dec. 3 at The Whitley in Atlanta’s Buckhead district and attracted 384 attendees. Laterveer said developers are planning …

December 11, 2019

Conference Coverage Features Georgia Multifamily Southeast

Powered By Healthy Job Market, Multifamily Investment Remains a Safe Bet

by Alex Patton December 10, 2019

ATLANTA — Increased job growth in major markets throughout the Southeast and lower borrowing costs have quelled fears of a 2020 recession, and multifamily investors are feeling confident going into the new year. The Bureau of Labor Statistics recently reported that the U.S. economy generated 266,000 jobs in November and the unemployment rate fell 10 basis points to 3.5 percent. Healthy job growth in major population centers drives heightened demand for housing, particularly in the multifamily sector. Speakers at France Media’s InterFace Multifamily Southeast conference shared their perspectives on the multifamily investment market of 2019 and their predictions for 2020. The conference, which took place Tuesday, Dec. 3 at The Whitley hotel in the Buckhead district of Atlanta, attracted 384 industry professionals. “Multifamily is a pretty much tried-and-true section of the real estate investment market,” said Steven Shores, president and CEO of Pollack Shores. “We have very low volatility compared to other sectors, and if you’re trying to make an allocation between some sort of alternative asset versus cash or bond portfolio, we look pretty attractive from a risk-investment perspective.” Shores noted that existing assets are trading at cap rates anywhere between 4 to 5 percent, depending on the location, …

December 10, 2019

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Retail, Office Trends Influence Apartment Development Strategies, Says InterFace Panel

by Kristin Harlow December 5, 2019

ATLANTA — Much of today’s new apartment projects feature a ground-floor retail component. But developers at France Media’s 10th annual InterFace Multifamily Southeast conference actually expressed concern about this type of development approach. “The overall retail market is just not what it once was,” said Richard Aaronson, CEO of Atlantic Residential. “A lot of municipalities are recognizing that ground-floor retail in a residential building is not ideal.” In other words, if there is difficulty leasing the retail space, a bunch of empty storefronts doesn’t bode well for the overall project. Aaronson said his company is implementing ground-floor retail on a limited basis and is instead incorporating first-floor apartments and community spaces. Aaronson spoke on a panel titled, “What Makes a Development Project Successful in Today’s Market?” Joining Aaronson on the panel was Harvey Wadsworth, managing director with Mill Creek Residential; Peter Joerss, director of acquisitions for PointOne Holdings; Jason Doornbos, executive managing director for Landmark Properties; and John Leonard, first vice president with Marcus & Millichap who served as moderator. The conference took place Tuesday, Dec. 3 at The Whitley in Atlanta’s Buckhead district and welcomed 384 attendees. Complicating matters, however, is that some cities require new apartment developments to …

December 5, 2019

Features Multifamily Student Housing

Volume of Package Deliveries Opens Pandora’s Box for Student Housing Managers

by Katie Sloan December 5, 2019

If you have sufficient room and staff at your property to handle the influx of package deliveries today, chances are good you may come up short tomorrow. “I’m sure in a few years, I will say the same thing I said two years ago: We still don’t have large enough package areas,” says Kristen Penrod, a principal with Parallel. Most properties report receiving an average of 150 to 200 packages per day. But at larger properties, and during peak times such as move-in, deliveries can multiply quickly. “During the busier times of year, 600 a day is not unheard of,” says Matt Fulton, managing director with Greystar. “The sheer volume is concerning. Properties built even five years ago don’t have the room to store that many packages.” According to American Campus Communities’ 2019 Spring Living Survey, the REIT was able to identify that on average, 91 percent of residents receive one package a week and that 86 percent of residents retrieve their packages within 24 hours. Craig Meddin, founder and CEO of Postal Solutions, which has been delivering mail and packages to student housing for 20 years, says that package volume is increasing 15 percent year-over-year. “We have some student …

December 5, 2019

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