WEEKLY
Mortgage Rate (30-Year Fixed): 6.42% (as of 12/29)
MONTHLY
Existing Home Sales: -7.7% (November 2022)
New Residential Sales: +5.8% (November 2022)
Median Sales Price for New Houses Sold: $471,200 (November 2022)
Construction Spending: +8.5% YoY (November 2022)
New Residential Housing Starts: 1.427 million (November 2022)
New Residential Housing Completion: 1.490 million (November 2022)
QUARTERLY
Homeownership Rate: +66.0% (3Q22)
Rental Vacancy Rate: +6.0% (3Q22)
Sources: NAR, BLS, Federal Reserve Bank, MBA
Note: Rates listed are estimates and may not reflect actual rates depending on term, sponsor location, and other factors involved.
10. St. Petersburg, FL vacant site to be transformed into apartments
New York-based entity Onyx St. Pete LLC has already filed plans to build a new seven-story apartment building at 630 4th Ave. S. near Tropicana Field. The building will have 33 units and a 16-space garage at the 0.2-acre vacant site and will cost approximately $6 million. Another developer earlier proposed to build a four-unit townhome community at the site but after it did not push through, Onyx St. Pete purchased the site last year for over $1.5 million.
9. Chicago’s LaSalle Street corridor will have more office-to-multifamily conversions
Chicago has received proposals for more than $1.2 billion in projects to convert old office buildings in the LaSalle Street financial corridor into affordable apartments and shops. The nine proposals will target seven outdated office towers where occupancy was severely hit by COVID-19. The city planning office will aim to reach its goal of creating 1,000 new apartments with affordable rents.
8. CRE loan delinquencies lower in 3Q22
A new report based on Trepp’s Anonymized Loan-Level Repository (T-ALLR) data revealed that delinquency rates for commercial real estate bank loans continued to decline in 3Q22 to only 0.70%. This is near the 0.76% level that was recorded before the pandemic started. The multifamily delinquency rate was 0.3%, and multifamily loan volume was up 9.3% over last year, or $170.8 billion.
7. Los Angeles will likely add another multifamily development in 2023
Alder Holdings is seeking approvals to build a new five-story apartment building one block south of Melrose Avenue in Larchmont, Los Angeles. The company filed an application last year to the L.A. Department of City Planning to build the Clinton at Gramercy. This contemporary podium-type building will have 23 residential units with 17-slot subterranean parking.
6. Atlanta’s second oldest steel-frame structure will become mixed-use development
The Grant Building at 44 Broad Street, which is listed on the National Register of Historic Places and is considered the second oldest steel-frame structure left standing in Atlanta, will become a mixed-use project after it was purchased by Wolfe Investments and Bluelofts, a Dallas-based real estate company that specializes in office-to-multifamily conversions. This follows recent office-to-residential conversions at Altitude Atlanta and Centennial Yards South.
5. Almost 76% of multifamily constructions deals repriced
A survey by the National Multifamily Housing Council (NMHC) in December revealed that three-fourths of the respondents reported that they have experienced upward deal repricing during the past three months. They observed an average increase of 9% over the same three-month period, down from the 7% increase reported the previous quarter.
4. Manhattan multifamily purchased for $115M
Empire State Realty Trust (ESRT) purchased a seven-story multifamily property, 86K SF building, located at 298 Mulberry Street in Manhattan for $115 million. JLL represented the sellers, Broad Street Development and another real estate fund, that bought the apartment building for $92 million in 2014. The property has 96 market-rate units and ground-floor retail currently occupied by a CVS drug store.
3. Austin 3Q22 multifamily market asking rents push higher
Data from Northmarq revealed that asking rents in Austin continued to hike in recent months, rising 2% during 3Q22 to $1,546 per month. Local apartment rents are up 12.9% YoY as well. The median price in the same period was recorded at $221,700 per unit, up 7% from the median price YoY.
2. Round Rock, TX multifamily renovation project to commence
Stockwell Multi-Family at Kenney Fort Boulevard in Round Rock, TX will begin its renovation project in February 2023, according to Community Impact. The development, which contains 358 rental units contained in eight residential buildings with a central leasing office and amenity facility, will undergo around $1 million in renovations, which are estimated to last until March 2025.
1. No better sector today than multifamily real estate: CEO says
David Scherer, co-CEO of multifamily real estate fund company Origin Investments, announced during the release of the company’s 2023 forecast report that the multifamily market will still be a leading choice among investors. “When you look at the basic fundamentals—demand and the long-term prospects for increasing rents and asset values—there is no better sector today than multifamily real estate,” he said. The firm predicts that the multifamily sector is sound despite the challenges in 2023 and will still be a favorable long-term investment.
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