WhiteRock’s Post

Starting in March 2024, Santa Monica will set new buyout minimums in tenant cash-for-keys agreements: Single - $18,250 1BR - $25,150 +2BR - $34,950 My thoughts being, while these minimums are high, people actively investing in Santa Monica know that in most properties they find there will be tenants who’ve been in the same unit since the 80s, paying thousands below market rates. Here is a quick example of how you could think about the tradeoff: Tenant is paying $2,000/month for a 2BR a couple blocks from beach Landlord pays $35,000 to buy out tenant New rent after a $30,000 renovation is $4,500/month Yearly increase in NOI @ 65% operating margin = $30,0000 At a 5% cap rate - $390,000 in value is created vs. $65,000 in total buyout & renovation costs.   In this very realistic scenario, the buyout remains a no-brainer.

Realogic's expert, experienced team works and consults on a wide range of commercial real estate projects, from ground up development to acquisitions, dispositions, on-going lease administration and more. One type of project that has spurred much discussion of late is multifamily conversions, especially of struggling office buildings, shopping malls and hotels. Many property owners, developers and investors see conversions as a way to turn around distressed assets, including the buildings that collateralize non-performing loans. Due to the growing interest in multifamily conversions and the recent surge in conversion projects, we decided to cover the subject in an on-going blog series, An In-Depth Look at Multifamily Conversions. The posts are heavily researched and include statistics as well as insights from our own discussions and work. Part 5 in our series is on converting vacant department stores and other unique types of apartment conversions, including of a historic minor league baseball stadium. You can read it at https://bit.ly/40sE3fw #commercialrealestate #multifamily #apartments #multifamilyconversions #departmentstores #stadiums

🔏 RECENTLY CLOSED TRANSACTION: 🔏 Our team is proud to announce our recent sale, where we represented the buyer in a complex acquisition on the West Side of Indianapolis. This property, which had lingered on the market for 5+ years due to its challenging floor plan and condition (it was really an industrial building), presented a unique opportunity for my buyer. - Recognizing the potential of this location, we started a site selection analysis to see if their grocery use would work, which, compared to other competitors and their other locations currently running, was ticking all the boxes. Our construction approach to devising a plan utilized the building's excess square footage for an additional tenant, enhancing cash flow, and included development space for parking and further retail expansions. - Lastly, knowing this part of town has so much development going for it furthered my conversations with them to believe this will be a home run both in the short and long term. - Get in touch if you're looking for innovative solutions in commercial real estate, especially in challenging scenarios that require a creative and strategic approach. Our success in turning a long-standing market listing into a lucrative investment with future growth potential exemplifies our expertise and dedication to our client's success. - #closedtransaction, #commercialrealestate, #grocerystoredevelopment, #Indianapolis, #realestateinvestment, #tenantrepresentation, #realestatedevelopment, #businessgrowth, #commercialproperty, #IndyRealEstate, #IndyCommercial, #IndyDevelopment, #IndyBusiness, #IndyRetailSpace, #WestSideIndy, #IndyPropertyDeals, #IndyInvestments, #IndyMarket, #IndyCommercialBrokers, #IndyLeasing, #IndyRetailDevelopment, #IndyEconomicGrowth, #IndyOpportunityZone, #IndyB2B, #IndyUrbanDevelopment, #IndyMixedUse, #IndyEntrepreneurs, #IndyLocalBusiness, #IndyCommercialLeasing, #IndyRealty

Morgan Properties, the nation's largest private multifamily owner and operator, just completed the acquisition of nearly 3,500 units across our home state of PA from The DePaul Group. This adds a private group to this years mix of massive multifamily portfolio bets behind Blackstone and KKR. One thing is for certain, these sales indicate growing confidence in the multifamily market by both institutional and private investors alike. Sale volume is returning as sellers and buyers have a better understanding (and maybe acceptance) of where the market is now after a significant correction. #multifamily #multifamilyinvesting #realestate #realestateinvesting #investmentsales #cre #pennsylvaniarealestate #cushwake

Liya Mo, Vice President of Acquisitions and Originations, and Edward Platts, Analyst, attended Bisnow's Southeast Single-Family Rental, Build-to-Rent, and Master Planned Communities event in Orlando, FL on October 26th, 2023. Liya Mo was a speaker at the event and shared her current views on land acquisition, new market expansion, and tailoring the design of Lafayette’s Build for Rent (BFR) communities to residents' evolving needs. Below are some of the key highlights: 🏡 Strategic Shift in our Acquisition Strategy: Lafayette has adjusted its acquisition strategy from buying finished homes to buying land to align with market conditions which have changed a lot since Lafayette started investing in BFR communities in 2019: cap rates on finished homes went from 6% in 2019 to 4% in 2022 and are now back up closer to 6%. This has pushed Lafayette to stay nimble and spend more time on land deals in 2023 for which 7% cap rates are achievable. 🏡 New Market Underwriting: When considering expanding to a new market, Lafayette places more emphasis on understanding the multifamily supply and demand dynamics of that market. Beyond traditional underwriting metrics such as income, population, and crime rates, Lafayette recognizes the potential multifamily oversupply in over a dozen markets, thus taking a holistic approach to ensure strategic market entry. 🏡 Adapting Community Design: Thanks to our direct feedback loop and constant collaboration with Brandywine Homes USA, Lafayette's property management affiliate, we continuously adapt the specs and design of our communities to evolving tenant needs. Notable enhancements in our BFR communities include backyard fences (catering to more than 50% of tenants who have pets!), lawn maintenance services, smart home packages, and washers/dryers. #sfr #btr #singlefamily #buildforrent #realestate #residentialrealestate🏡📈

From wholesaling to flipping, every step has shaped us for the multifamily journey! 🔄 Our skills in finding deals and renovating properties seamlessly transitioned into the multifamily space. In the beginning, we hunted for deals just like we did in single-family wholesaling, going direct to sellers. It was a game-changer, and though we now work more with brokers, those early skills got us our first two deals and opened doors. Our construction background has been key! Confidence in estimating renovation costs has been invaluable. It not only helped us plan but also attracted partners to join our General Partner team. Both experiences played a crucial role, accelerating our growth and allowing us to build our multifamily portfolio with confidence and speed. #RealEstateJourney #MultifamilySuccess #SkillsTransfer

What is the Difference between PRE LEASED vs PRE LAUNCHED? To know more about it watch the video carefully and gain a better understanding of these terms. Understanding the distinction between pre-leased and pre-launched properties is essential for anyone involved in real estate. Check out the video to learn more! #realestate #property #preleased #prelaunched #investmentopportunity #commercialproperty #properties

🏡 Multifamily Real Estate is 27% Off! 🏡 We just closed on a deal with an operator who secured a multifamily property at a 27% discount. 📉 Imagine finding a 27% off deal at the grocery store – you wouldn’t pass that up, right? The same applies to real estate. Opportunities like this are rare and highly rewarding. Now is the perfect time to invest in multifamily real estate and capitalize on these significant discounts. Don’t miss out on the chance to boost your portfolio with high-value properties at unbeatable prices. What opportunities are you seeing in multifamily? #InvestmentOpportunity #MultifamilyRealEstate #RealEstateInvesting #FinancialFreedom #OptimalEquity #SmartInvesting #DiscountDeals

Gone are the smoke & mirrors of value-add real estate. And with it, the mad rush to buy assets. → No more compressed cap rates → No more cheap bridge debt → No more 115% IRRs Today, you need a good, old fashioned track record → You must deliver quality products to market → You must under promise and over deliver → You must keep your expenses low → You must do all this every time With this reality top of mind. Despite the turmoil of the RE world. Our team did it again, and in a big way. We have completed the renovations of 7121 Samuel Dr. The business plan with 7121 Samuel Dr: → Fully renovate 34 units to our "Elevated" finish → Shore up operational inefficiencies Why we liked 7121 Samuel Dr: → Prime neighborhood 15 minutes from Denver → Rents were $500 under the market rents The results of 7121 Samuel Dr: → Fully renovated & leased 34 units in 9 months → Delivered "Midtown Plaza" under budget → $888 Avg Rent to $1,340 Avg Rent The mad dash for real estate may be gone. But, us? We are just getting started. P.S. I help passive investors invest in deals like this one.

Check out this #CaseStudy about a recent closing! $2,400,000 | 290 East 53rd Street, Brooklyn, NY The 4-story walk-up apartment building at 290 East 53rd Street in Brooklyn, NY, recently sold for $2.4 million. Built in 1920, the property features 27 apartments and boasts a cap rate of 8.23%, a GRM of 5.91, a PPU of $88,889, and a PPSF of $93. This sale highlights the growing demand for well-located, multi-functional properties in urban areas, reflecting the market's recognition of their high value and potential. The involvement of the Rosewood Realty Group ensured a smooth transaction, leveraging their deep market knowledge and extensive network. Facilitating this transaction, Rosewood Realty Group leveraged their profound market insight and extensive network, ensuring a smooth and efficient process. Their adept handling of the deal underscores the growing trend of investing in multifamily buildings, reflecting the market's acknowledgment of their high value and promising returns. Contact our team: Aaron Jungreis at aaron@rosewoodrg.com Ben Khakshoor at ben@rosewoodrg.com Eli Shayestehpour at eli@rosewoodrg.com To work with us or for more information, email us at info@rosewoodrealtygroup.com. #rosewoodrealtygroup #rosewoodrealty #competitive #advantage #newyork #commercialrealestate #nycCRE #acquisitions #realestate #NYC #NYRealEstate #multifamily #mixeduse #industrial #office #retail #Rosewood #RealEstate #newyorkCRE #CRE #NYCCRE #NYCRE #development #BRONX #BronxNY #closed #deals