Multifamily

Job Growth, Proximity to D.C. Help Boost Baltimore Multifamily Rents, Supply

by John Nelson October 24, 2016

Historically overlooked along the East Coast, Millennial migration has symbolized the dawn of a new day in Charm City. The recent influx of a budding dynamic workforce to Baltimore’s urban core neighborhoods has driven the fourth largest increase in college-educated young professionals amongst metro areas nationwide. These young professionals followed substantial job migration resulting in a paradigm shift from Washington, D.C., and other major Mid-Atlantic employment centers. Baltimore’s labor market has demonstrated year-over-year gains since 2010. As of March 2016, Baltimore metro-area non-farm employment totaled 1.4 million, up 2.6 percent over the past year, as compared to 2 percent growth nationally over the same period, according to data from the U.S. Bureau of Labor Statistics. The professional and business services sector contributed the largest gains since March 2015, adding 13,500 jobs to Baltimore’s work force, representing a growth rate of 6 percent over the prior year. The recent surge in employment has driven sustained demand for rental housing, pushing vacancy rates to historic lows and placing upward pressure on rents. Despite its rapid ascension, Baltimore continues to benefit from its proximity to other East Coast cities, which have experienced economic expansion as well, with Baltimore remaining the most affordable of …

October 24, 2016

Market Reports Multifamily Texas Texas Market Reports

Dallas Multifamily Market Has Staying Power

by Haisten Willis October 21, 2016

Success breeds success. That adage, more than any other, defines the Dallas-Fort Worth economy and its strong multifamily market. In the last five years, a number of companies, such as Toyota North America and Nationstar Mortgage, impressed by the advantages of doing business in Dallas-Fort Worth, have relocated their headquarters here. These companies were attracted by the area’s central location, equidistant from both coasts, as well as an educated workforce, a diverse economy and a favorable business climate. This year Jamba Juice, among other companies, took notice and announced that they are joining the migration to north Texas. Even companies not choosing to uproot their headquarters are expanding their presence in Dallas-Fort Worth. Early this year, JPMorgan Chase picked Plano’s Legacy West development for a new 6,000-employee campus, next door to Toyota as well as Liberty Mutual, which itself will add 5,000 workers to a huge new service center it is building there. Also this year, Fannie Mae announced it would move more than 1,000 workers to Plano, the medical giant McKesson revealed plans to add 1,000 office jobs in Irving and Pegasus Foods chose Rockwall for a new plant that will employ 300. The Federal Reserve Bank of Dallas’ …

October 21, 2016

Affordable Housing Features Multifamily Top Stories

Survey: 76 Percent of Millennials Struggle to Find Affordable Housing

by Haisten Willis October 20, 2016

WASHINGTON, D.C. — A survey of 1,000 Americans aged 18-34 — commonly known as Millennials — has found that a majority of them have had to delay or rethink traditional ideas of home ownership, according to The NHP Foundation, which conducted the survey. The NHP Foundation is a nonprofit provider of affordable housing. The survey found that 76 percent of Millennials have made compromises in order to find affordable housing, which NHP defines as housing that costs no more than 30 percent of the respondent’s income. Of those who admit compromises, 46 percent live with parents or family, 43 percent have put off saving for the future, 41 percent live with a roommate and 36 percent had to move further away from school or work to find something affordable. “Millennials, America’s largest generation, are already saddled with record-breaking student loan debt and no longer think homeownership is in their future,” says Richard Burns, CEO of The NHP Foundation. “This group mirrors much of society, which is also frustrated by the lack of affordable housing and is seeking rental options.” Cost Burden Those who spend more than 30 percent of their income on rent or a mortgage are considered cost-burdened. The survey found …

October 20, 2016

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Renter Demand Keeps Pace with Apartment Developers’ Building Bonanza

by Jeff Shaw October 20, 2016

Chicago’s diverse economy and ample employment opportunities are driving growth metrowide, which bodes well for apartment owners and managers. Encouraged by the positive economic outlook, developers are expected to deliver nearly 7,500 new units this year, the largest supply increase since 2000. That said, high levels of construction will not be at the expense of other performance metrics such as occupancy, rent and price growth. Job growth is accelerant In the first half of the year, Chicago-area employers added 34,500 workers to their payrolls. Hiring was led by the leisure and hospitality sector and the construction industry, which expanded 4.2 percent and 5.3 percent respectively over the 12-month period that ended in June. Consistent employment expansion has also boosted household incomes, with the median household income reaching $65,300 at the end of the second quarter. With the median income above the nationwide average, demand for luxury rental units is rising tremendously. These factors, in addition to the Millennials and Empty Nesters flocking to the area, will support rental affordability and demand even as rents continue to increase. This is a positive indicator of the overall health of Chicago’s economy. Employers in metro Chicago remain on track to hire a total …

October 20, 2016

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Renter, Investor Demand on the Rise in Phoenix’s Multifamily Market

by Camren Skelton October 4, 2016

The Greater Phoenix multifamily market continues to thrive in a high-demand environment, driven by strong tenant volume and investor interest. As the local economy expands, employers are adding workers at a steady pace while demand for housing is on the rise. Apartments remain the preferred choice for many, pushing multifamily vacancy rates low even as new units are added to inventory. We fully anticipate these conditions to continue in the year ahead. Multifamily vacancy in the Greater Phoenix market ended the second quarter of 2016 at 5.9 percent, 20 basis points lower than one year earlier. Vacancy typically ticks higher in the second quarter, as some part-time residents escape the summer heat wave. This trend occurred again this year. Despite the recent seasonal rise, vacancy has been below 6 percent for the past four quarters, and the rate will undoubtedly tick lower in the second half of this year. The low-vacancy conditions are fueling robust rent growth. Asking rents have spiked by more than 8 percent in the past year, while the pace of gains is accelerating. Asking rents rose more than 5 percent in the first half of 2016, with additional increases anticipated in the months ahead. More than …

October 4, 2016

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CA Ventures Delivers Eight Student Housing Communities for 2016/2017 School Year

by Haisten Willis September 21, 2016

CHICAGO — CA Student Living, the student housing investment and development division of Chicago-based CA Ventures, has completed eight student housing communities comprising nearly 4,000 beds across the U.S. Located in eight states, the properties are about 95 percent occupied and represent nearly 10 percent of the 47,700 off-campus student housing beds slated to deliver nationwide in 2016, according to the developer. Valued at more than $460 million, the new communities boost the size of CA Student Living’s portfolio to $1.5 billion. All offer fully furnished apartments with in-unit laundry and a 1:1 bed-to-bath ratio in most units. The newly delivered communities include: Uncommon Athens — Uncommon Athens is a five-story building located at 165 E. Dougherty St in Athens, Ga. It is within walking distance to both downtown Athens and the University of Georgia. The property’s 210 beds include a mix of one-, two- and four-bedroom floor plans, and the development contains 10,600 square feet of street-level retail space. Indoor amenities include a 24-hour fitness center, golf simulator, business center, study lounge, group meeting space, club room and coffee bar. Uncommon Charlottesville — Uncommon Charlottesville, a six-story building located at 1000 W. Main St. in Charlottesville, Va., is within …

September 21, 2016

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Connecticut Market Reports Multifamily Northeast Northeast Market Reports

Investors Seeking Yield See Opportunities in Fairfield & New Haven Apartments

by Jaime Lackey September 21, 2016

Employment gains in New Haven and Fairfield counties, coupled with a bustling job market in the New York City metro, have generated high demand for apartments in New Haven and Fairfield counties, overcoming some of the recent negative optics in Connecticut. Newly hired employees are looking for housing. Employers in New Haven and Fairfield counties are set to add 10,500 individuals to the local workforce this year. And although a significant number of tenants work in the boroughs of New York, they prefer Connecticut rentals due to a significant price differential. Even after considering costs for commuting, the value proposition New Haven and Fairfield counties remains very robust as average rents are priced at approximately $2,000 less per month than those in New York City. Market demand for housing in these two counties will create upward pressure on rent this year, advancing average effective rent 1.6 percent to $1,635 per month. In 2015, effective rent closed the year at $1,609 per month — an 18.3 percent pace of growth since 2011. Builders will deliver 2,100 apartments in New Haven and Fairfield counties in 2016, a reduction from the 3,550 apartments that were delivered in 2015; and they are focusing on …

September 21, 2016

Multifamily New Jersey Northeast Top Stories

NJPAC, Dranoff Properties Start Construction of $116M High Rise in Newark

by Nellie Day September 19, 2016

NEWARK, N.J. — The New Jersey Performing Arts Center (NJPAC) and developer Dranoff Properties have started construction of One Theater Square, a $116 million high-rise multifamily complex in Newark. One Theater Square will be the first new ground-up, upscale residential high rise in the city since 1960, according to the developers. The 22-story project will be situated on 1.2 acres across from NJPAC and Military Park. It will contain 245 units, most of which will be one- and two-bedroom apartments that will range in size from 585 to 1,700 square feet. The project includes 24 affordable housing units that will be marketed as artist residences, though they will be available to anyone who meets the financial criteria. The ground floor will include 12,000 square feet of retail space. One Theater Square will have a 24-hour concierge, rooftop community gathering space, fitness facility and multiple club rooms. Developers plan to complete the project in the summer of 2018. The public-private partnership includes contributions from the City of Newark; the State of New Jersey; Prudential Financial; Fifth Third Bank; Dranoff; and NJPAC. Philadelphia-based Dranoff Properties develops, builds, finances and/or manages multifamily developments in and around the Northeast. Carl E. Dranoff founded the …

September 19, 2016

Market Reports Midwest Midwest Market Reports Missouri Multifamily

Job Growth, Technology Sector Give a Boost to the Kansas City Apartment Market

by Jeff Shaw September 15, 2016

Look no further than Kansas City for one of the most burgeoning apartment rental hotspots in the Heartland. Ever since apartment deliveries reached a trough of 233 units in 2011, developers have ramped up construction activity year after year to meet healthy rental demand, though often still trailing robust leasing activity. This trend continued in the first half of 2016, with 2,170 newly occupied apartments exceeding 1,650 multifamily units added to the metro area inventory. What’s contributing to this demand? And will rapid market growth and expansion continue? Job growth, tech boom Employment gains are a big reason rental market demand continues to outweigh supply. For the last six years, greater Kansas City has experienced annual average employment gains of 1.5 percent to support sustained rental demand. After steady, though moderate gains in the last half of 2015, employers accelerated hiring with 10,500 additions from January to June, a 1 percent expansion over the previous six months. The six-month hires capped an annual increase of 1.5 percent since mid-2015 with 15,900 new personnel. To no surprise, the rise in employment has coincided with the rise in renters, as they’ve been attracted to new inventory around employment hubs. The Downtown/East Kansas …

September 15, 2016

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Morgan Properties Buys Four-State, 11-Property Multifamily Portfolio for $316M

by Nellie Day September 12, 2016

KING OF PRUSSIA, PA. — Morgan Properties has purchased an 11-property multifamily portfolio that spans four states for $316 million. The assets, collectively known as Star Portfolio, contain a total of 2,826 units across Maryland, Pennsylvania, North Carolina and South Carolina. The transaction includes the Greens at Westgate in Pennsylvania; the Waterway and Forest Oaks in South Carolina; Falls Creek and Heather Park in North Carolina; and Silver Spring Station, Westerlee, the Willows, St. Mary’s, Taylor Park and Willowood in Maryland. The assets have an average age of 29 years. All the properties are situated in high-barrier submarkets close to major development hubs and public transit. Morgan Properties plans to execute a multi-million-dollar, value-add repositioning plan at each property. The renovation strategy will include premium kitchen and bath renovations and amenity upgrades. Morgan Properties acquired Star Portfolio through an affiliated joint venture. David Oakley and Scott Melnick of Berkadia represented Morgan Properties in the transaction. Deutsche Bank represented the unnamed seller. The firm also recently purchased three separate Maryland multifamily assets, including the 325-unit Grand Pointe in Columbia; the 606-unit Avery Park in Silver Spring; and the 450-unit Henson Creek in Temple Hills. Morgan Properties owns and manages 132 apartment …

September 12, 2016

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