Ivan Kaufman’s Blog2017-07-19T16:32:21+00:00

Ivan Kaufman’s Real Estate Blog

Weekly Roundup Intro: Week of June 17, 2019

This week’s multifamily roundup provides insights on single-family rent growth, CRE collateralized loan obligations (CLOs) and senior housing needs. First, CoreLogic notes that single-family rents have been climbing steadily since 2010, achieving 3% year-over-year growth in April. Next, Freddie Mac discusses the need for energy and water upgrades at older multifamily properties and how green financing programs can help owners and managers make these improvements. Arbor’s Chatter blog reports on the growth and maturation of the CRE CLO market as more investors and issuers enter the space. Then, RealPage reports that rent premiums for living in downtown areas vary widely by city, spotlighting metros with the priciest urban cores. Finally, NREI argues that as the need for affordable middle-income seniors housing grows, the industry will need to innovate in how it can offer more affordable housing options to the age group, such as using public-private partnerships.

 

Single-Family Rent Growth Picks Up a Bit

CoreLogic – June 18

“Single-family rents climbed steadily starting in 2010, and annual rent increases have stabilized, fluctuating between 2.9% and 3.2% for the past 12 months.”

Investing in Greener Multifamily Housing

Freddie Mac – June 17

“The buildings most in need of water and energy upgrades aren’t luxury, newly-built high rises. They’re the 30-year-old garden apartments in communities large and small. They dot the country and provide good homes to working people.”

CRE CLOs Grow in Popularity Among Investors and Issuers

Arbor Chatter – June 18

“CRE Collateralized Loan Obligations (CLOs) have emerged as a sophisticated and reliable financing tool post-crisis.”

Urban Core Apartments Command Rent Premium

RealPage – June 17

“Though it has been widely understood that urban living is pricier than suburban living, the premium that downtown living commands ranges widely.”

Who Will Meet the Seniors Housing Needs of Middle-Income Boomers?

NREI – June 17

“Solutions that cater to boomers’ lifestyles need to look different than today’s seniors housing. Not only will boomers reject many of the features of today’s seniors housing, they also can’t afford them.”

Weekly Roundup Intro: Week of June 10, 2019

This week’s multifamily roundup takes a look at apartment occupancy, cap rates and sustainability in real estate. First, RealPage reports that strong leasing activity has led U.S. multifamily occupancy to reach a level not seen since the early 2000s. Next, Real Capital Analytics observes that cap rates have not moved much over the last year, even as interest rates have seen a significant change in direction. Arbor’s Chatter blog analyzes how senior renters’ internet usage has evolved and the differences in access based on property type. Then, CNBC highlights the migration patterns of high-income Millennials, noting that this segment is moving toward the South and West Coast. Finally, Urban Land reveals several strategies real estate firms can implement to successfully identify sustainability opportunities when looking to buy or sell a property.

 

U.S. Occupancy Surges to Highest Level in Nearly Two Decades

RealPage – June 11

“Meanwhile, average annual rent growth among the nation’s apartments held solid at 3.1% in May, landing well above May 2018’s level of 2.6%. May marks the 10th consecutive month of annual rent growth at 3% or higher.”

What Difference Does a Year Make to US Cap Rates?

Real Capital Analytics – June 13

“This time a year ago we looked at how Federal Reserve moves to raise interest rates were impacting commercial real estate. The answer at the time was that the rate environment was affecting deal volume and not cap rates.”

Senior Renter Internet Usage Gaining Bandwidth

Arbor Chatter – June 14

“While internet usage is pervasive in today’s society, technology usage still varies significantly across household segments. Factors such as user age, income and education level play a role.”

Millennials Who Earn $100,000 or More are Flocking to These 10 States

CNBC – June 12

“Highly paid millennials are moving out of the Northeast and heading toward the South and the West Coast.”

Embedding Sustainability in Real Estate Transactions

Urban Land – June 10

“The potential value at stake for embedding sustainability is significant, and in some cases can represent a 50 percent–plus increase in asset value over the lifetime of an investment.”

Weekly Roundup Intro: Week of June 3, 2019

This week’s multifamily roundup offers insights on opportunity zone legislation, Cincinnati’s apartment market and strategies to retain renters. First, CityLab explains why some industry participants believe building more high-end apartments could actually be a potential solution to the affordable housing crisis. Next, Real Capital Analytics analyzes how policies relating to opportunity zones are impacting capital flows into low-income areas, with some signs indicating the program is making a difference. Arbor’s Chatter blog spotlights Cincinnati, noting that its apartment sector is booming, bolstered by record investment activity and rent growth. Then, PMI lists several strategies property managers can implement to achieve higher resident retention, including offering technologies and services. Finally, Zumper releases its June national rent report, reporting that most metros experienced flat monthly growth rates, indicating the national market is stabilizing.

How Luxury Units Turn Into Affordable Housing

CityLab – June 5

“For every 100 luxury units built in wealthier neighborhoods, as many as 48 households in moderate-income neighborhoods are able to move into housing that better suits their needs, vacating an existing unit in the process.”

US Opportunity Zone Legislation Is Moving Capital

Real Capital Analytics – June 4

“For every low-income census tract that was selected for the opportunity zone designation, another three or so were left behind.”

Market Spotlight: Cincinnati is Booming as Economic Expansion Continues

Arbor Chatter – June 6

“As the tail of this economic expansion extends further, real estate investors continue to search for yield by investing outside of primary markets. Cincinnati has been a beneficiary of that trend, and the market is booming.”

Romancing the Renter: Proven Strategies for Higher Retention

PMI – June 6

“The way to their hearts – and their rent – is to offer technologies and services that make their lives simpler while providing ancillary revenue to the property.”

Zumper National Rent Report: June 2019

Zumper – June 3

“It seems the market is stabilizing since the days of many cities experiencing consecutive, 10%+ year over year growth rates in 2018. However, since hot moving season has just begun, rents could still shoot up in the coming months.”