January 28, 2023 Weekly Investor Update

Life Bridge Capital Weekly Investor Update

January 28, 2023

The Latest in Commercial Real Estate (CRE), Economy & Markets





Mortgage Rate (30-Year Fixed): 6.13% (as of 1/26)


Existing Home Sales: -1.5% (December 2022)

New Residential Sales: +2.3% (December 2022)

Median Sales Price for New Houses Sold: $442,100 (December 2022)

Construction Spending: +8.5% YoY (November 2022)

New Residential Housing Starts: 1.382 million (December 2022)

New Residential Housing Completion: 1.411 million (December 2022)


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. Lewiston-Auburn, MA is a hot market for multifamily homes

 Speakers at the MEREDA annual real estate forecast conference in Portland last week announced that Lewiston-Auburn’s multifamily market remains hot. The median sales price in the area rose 85% to $280,000 from about $150,000 between 2019 and 2022, according to a local real estate company. Unlike in other Maine cities whose home prices have gone back to pre-pandemic levels after experiencing a surge, Lewiston-Auburn remains an exception, which continues to attract investors.


9. Northmarq prepared sale of 240-unit multifamily in Corpus Christi, TX

Northmarq announced that it has arranged the sale of the 240-unit multifamily property, The Aventine Apartments, located in Corpus Christi, TX. However, the buyer and sales price were not disclosed. The Aventine Apartments offers one-, two- and three-bedroom units complete with amenities. It is near Driscoll Children’s Hospital, Corpus Christi Medical Center and Ocean Drive.


8. Multifamily leads outer-borough loans in NYC 

The multifamily market in Brooklyn and Queens recorded nearly $1 billion of loans for financing waterfront apartment projects in Williamsburg, Greenpoint and Astoria. According to The Real Deal, the 10 largest real estate loans in the outer boroughs in December amounted to $1.43 billion, making it the strongest December for big loans since 2018. Some of the top financing deals include Two Trees Management’s 600-unit apartment project in a two-tower, waterfront site 346 Kent Avenue, and Australian developer LendLease’s $360 million residential complex in Greenpoint.


7. Brunswick County, NC will have a new multifamily project

A multifamily housing project has been proposed for the Southport area in Brunswick County. The Vinings at Southport Apartments is located at the corner of Dosher Cut-Off SE and N.C. 87. It will have 12 three-story apartment buildings and five garage buildings plus a host of amenities. A total of 288 units is scheduled to be built in two phases. A commercial area in the 32-acre site is being planned as well.


6. Berkadia provides financing for 215-unit Iowa multifamily project

Berkadia will finance the 215-unit mid-rise multifamily property, District 42 Apartments, located in Sioux City, Iowa. The 35-year loan worth $20.016 million in permanent refinancing was provided to South Dakota-based Talon Development last month. District 42 Apartments offers studio, one-, two- and three-bedroom floor plans with community amenities. It is near Whispering Creek Golf Club, Western Iowa Tech Community College and shops along US Highway 75.


5. Sale of103-unit multifamily property in Arlington underway

Dallas-based brokerage The Multifamily Group (TMG) announced that it has already negotiated the sale of Villas at the Parks in Arlington, TX. The 103-unit multifamily property, which was built in 1983, offers one- and two-bedroom units with amenities. The property is near The University of Texas at Arlington, Medical City Arlington, USMD Hospital at Arlington and The Parks Mall at Arlington Both the seller and the buyer requested anonymity.


4. Kansas City’s multifamily market exhibit steady pace

Kansas City’s multifamily rent growth remained above the U.S. rate, rising 0.6% on a trailing three-month basis, to $1,218. Still, this is regarded as affordable compared to the $1,727 U.S. average. The occupancy rate fell by only 10 basis points in the 12 months ending in September at 95.5%. Developers delivered 1,932 units through October and had an additional 7,247 units in the pipeline. Investors traded $1.3 billion in assets, which set a new record for the metro.


3. NYC developer set to open luxury rental property in Lower East Side

The Gotham Organization is set to launch luxury rental property, The Suffolk, in New York City’s Lower East Side. The 30-story tower features 378 units and 330,000 sq ft of mixed-use space. It is part of Gotham’s master-planned community, Broome Street Development, that will offer a total of  493 rental units and two mixed-use towers.


2. Multifamily rent growth expected to top 4% in 2023

Analytics firm Markerr announced that general rent growth will rise across the top 100 markets points to a 4.2% YoY in 2023, which is still above the long-term average rent growth of 3.8%. According to the report, the top five markets for rent growth are Austin, Texas (8.3%); Des Moines, Iowa (8.2%); North Port, Florida (7.9%); Tulsa, Oklahoma (7.3%); and Wichita, Kansas (7.1%). The Sunbelt market rent level, on the other hand, is expected to grow 4.9%.


1. Valuation company: “Multifamily remains a front-running investment choice”

According to Scott Belsky of Partner Valuation Advisors, the multifamily sector “remains a front-running investment choice” this year after higher costs of single-family home ownership together with a nationwide housing shortage continue to raise the demand for multifamily properties. Belsky also added that although sale activity slowed in 2022, rental rates continued to increase. However, investors need to be aware that multifamily construction starts are still being affected by soaring construction and labor costs.


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