Affinius Capital’s Post

Blackstone has agreed to acquire an owner of upscale apartment buildings for about $10 billion, signaling that one of the world’s largest real-estate investors is ramping up investments again after a period of moving more cautiously. Blackstone is taking private Apartment Income REIT, known as AIR Communities, which owns 76 rental housing communities that are primarily in coastal markets, including Miami, Los Angeles, and Boston, the companies confirmed Monday. Blackstone plans to invest another $400 million to improve these properties, the firm said. The acquisition is Blackstone’s largest transaction in the multifamily market. It reflects the firm’s bullishness on rental housing and its belief that commercial real estate overall is bottoming and the time is ripe to step up investments. “We can see the pillars of a real-estate recovery coming into place,” Blackstone President Jonathan Gray said on an earnings call earlier this year. “We are, of course, not waiting for the all-clear sign and believe the best investments are made during times of uncertainty.” The firm in recent months has begun to invest more aggressively in the commercial real-estate market, betting that interest rates are stabilizing and access to capital is becoming easier. Blackstone late last year acquired a stake in a $17 billion loan portfolio from the defunct Signature Bank. In December, Blackstone and Digital Realty agreed to create a new venture to develop $7 billion in data centers that will target the largest providers of online content, cloud services and artificial intelligence. Earlier this year, Blackstone agreed to acquire Tricon Residential, which owns, operates and develops a portfolio of about 38,000 single-family rental homes in the U.S., for $3.5 billion. Blackstone considers multifamily, and rental housing in general, one of the best commercial property segments to invest in. While a crush of new supply, especially in the Sunbelt region, and higher interest rates have weighed on the multifamily business, the markets in AIR Communities portfolio have been less impacted.

MULTIFAMILY MINUTE | MOMENTUM The Silverlake / Echo Park apartment market has demonstrated a fascinating trajectory for Q3 2023 vs the same period last year. The median price per square foot (PSF) in the area saw a significant increase of 13%, while the median price per unit surged by an impressive 55%. Despite an increase in capitalization rates of 86 basis points (bps) for the period. This substantial growth in property values underscores investors' rising appeal of Silverlake / Echo Park.   The effective rent per unit remarkably remained stable despite a 79 bps uptick in the vacancy rate. The number of transactions increased by 60% totaling 8 transactions. This increase in activity signals a growing investor confidence in the market's potential. Looking forward, there is an expectation of a stabilization in pricing as investors become more accustomed to the current economic environment. Additionally, the market is anticipated to maintain its momentum with an expected continuation of the increase in transaction volume through the end of Q4 2023. Whether you are looking to expand your portfolio or cash out of this market, the True North CRE Team offers full-service guidance to help you make clear and confident decisions. Do not hesitate to reach out to get started. We look forward to hearing from you! Presented by: John Swartz, Los Angeles Apartment Investment Advisor Jacqueline Carroll, Multifamily Specialist True North CRE | Compass #losangeles #multifamily #market #realestate #investments

MULTIFAMILY MINUTE | SIGNIFICANT ADJUSTMENTS The Silverlake | Echo Park apartment market experienced significant adjustments in Q4 2023 when compared with Q4 2022, highlighting shifts in market valuations and investor behavior. There was a notable decrease in the median price per square foot (PSF), which fell by 17%, alongside a 6% reduction in the median price per unit. Furthermore, the median capitalization rate saw a modest increase of 13 basis points (bps). The rental market showed signs of stability as effective rent per unit decreased by 1%, and the vacancy rate saw a slight uptick of 30 bps. However, transaction volume witnessed a significant decline, dropping by 50% to total only 7 transactions for the period. Looking ahead, the Silverlake | Echo Park apartment market is anticipated to experience a continued stabilization in pricing. Additionally, there is optimism for an increase in transaction volume as the Federal Reserve is expected to decrease interest rates in the coming quarters. Are you considering a strategic exit from the market? Let the True North CRE Team be your trusted partner in this journey. Our full-service approach is tailored to empower you with clarity and confidence in every decision you make. Reach out to us for a complimentary valuation to get started. We look forward to hearing from you! Presented by: True North CRE John Swartz, Los Angeles Apartment Investment Advisor Jacqueline Carroll, Multifamily Specialist #losangeles #multifamily #apartments #market

MAG Partners and Safanad Secure $151M for Chelsea Multifamily Development Read the full article below..

MULTIFAMILY MINUTE | EVOLVING LANDSCAPE Mid-Wilshire Apartment Market Q4 2023 v Q4 2022 The Mid-Wilshire apartment market has undergone notable changes in Q4 2023 compared to the corresponding period in 2022, illustrating a shift in both investment metrics and renter behavior. The median price per square foot (PSF) saw a significant decrease of 15%, while the median price per unit experienced an even steeper decline of 25%. Additionally, the median capitalization rate surged by 113 basis points (bps). These adjustments signal a considerable softening in property values within this vibrant Los Angeles neighborhood. Renter demand for the period slowed as the effective rent per unit decreased by 5% and the vacancy rate rose a substantial 203 bps. Despite these shifts, the transaction volume in the Mid-Wilshire apartment market only decreased by a modest 7%, totaling 14 transactions for the quarter. Investors see value in the area and are taking advantage of the current pricing adjustments. We expect to see a continued uptick in transaction volume as the market continues to stabilize coupled with the expected decrease in interest rates from the Federal Reserve later in the year. Are you considering a strategic exit from the market? Let the True North CRE Team be your trusted partner in this journey. Our full-service approach is tailored to empower you with clarity and confidence in every decision you make. Reach out to us for a complimentary valuation to get started. Presented by: True North CRE John Swartz, Los Angeles Apartment Investment Advisor Jacqueline Carroll, Multifamily Specialist #multifamily #losangeles #apartments #realestate

Blackstone has announced it plans to acquire all outstanding shares of Toronto-based Tricon Residential Inc. and take the firm private in a $3.5 billion equity transaction (all figures U.S. unless otherwise stated), reported Real Estate News Exchange (RENX). "Blackstone Real Estate Partners X together with Blackstone Real Estate Income Trust, Inc. (BREIT) are offering $11.25 in cash per Tricon common share, a premium of 30 per cent to Tricon’s closing share price on the NYSE on Jan. 18. It represents a 42 per cent premium to the volume-weighted average share price on the NYSE over the previous 90 days." "BREIT will maintain its approximately 11 per cent ownership stake post-closing, the companies state in this morning’s announcement. Blackstone also says it remains committed to completing Tricon's existing multi-billion-dollar development plans for multifamily housing in Toronto, as well as addition an additional $1 billion to its program to upgrade its U.S. rental properties." https://lnkd.in/gxJCnTbV

Notable, New Pricing Benchmark in the Twin Cities—- In April 2022, we sold The Cliffs of Minnetonka (456-units) for $126MM ($276,316/unit). The units were mostly original with limited improvements. Fast forward to October 2023, a similarly sized property, just 6 minutes from The Cliffs, with fully renovated units recently sold for 25% less. The Gates at Carlson Center (435-units) sold for $89MM ($204,598/unit) – a clear market shift. The Twin Cities multifamily market has changed. Buyers, this is your market.

RESEARCH: Driven by record-high interest rates, renting continues to be more economical than owning, increasing the spread between homeownership and apartment rental costs to $824 in first quarter 2024, an 18.4 percent increase year-over-year, according Newmark’s First quarter U.S. multifamily capital markets report.

Multifamily construction has seen a substantial 47% increase from the late 1990s to the early 2020s. This trend is driven by an aging homebuyer demographic opting to stay in apartments longer. For investors, this signals a robust opportunity within the #CRE market to capitalize on the sustained demand for multifamily properties. For more about the growing multifamily market, check out our latest report for 2Q 2024: https://loom.ly/qmtTMJU Explore the potential with Marcus & Millichap: https://loom.ly/J4THRu0 Joel Deis David Tabata Marcus & Millichap Capital Corporation (MMCC) Multifamily NW #apartmentinvesting #multifamily #commercialrealestate

𝙇𝙖𝙨 𝙑𝙚𝙜𝙖𝙨 𝙢𝙪𝙡𝙩𝙞𝙛𝙖𝙢𝙞𝙡𝙮 𝙢𝙖𝙧𝙠𝙚𝙩 𝙨𝙤𝙖𝙧𝙨 𝙗𝙮 𝙖 118% 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙚 𝙞𝙣 𝙙𝙚𝙡𝙞𝙫𝙚𝙧𝙞𝙚𝙨 𝙛𝙧𝙤𝙢 2022 𝙩𝙤 2023 ► The Las Vegas multifamily market has experienced significant growth, with 7,059 units added in 2023 and another 1,577 in Q1 2024 alone. Driven by a growing population and a thriving suburban work culture, submarkets such as Summerlin/East Valley, Henderson, North Las Vegas/Sunrise Manor, and Enterprise/South Paradise have consistently seen robust development over the past decade. ► Notably, there was a substantial 118% increase in deliveries from 3,234 units in 2022 to 7,059 units in 2023. The continued influx of new units in Q1 2024 suggests that this year could mirror the previous year’s growth. With 6,487 units still under construction, there's no sign of a slowdown in development. P.S. https://lnkd.in/de7u2nWK