March 25, 2023 Weekly Investor Update

Life Bridge Capital Weekly Investor Update

March 25, 2023

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



Mortgage Rate (30-Year Fixed): 6.42% (as of 3/23)


Existing Home Sales: +14.5% (February 2023)

New Residential Sales: +15.3% (February 2023)

Median Sales Price for New Houses Sold: $438,200 (February 2023)

Construction Spending: +5.7% YoY (January 2023)

New Residential Housing Starts: 1.450 million (February 2023)

New Residential Housing Completion: 1.557 million (February 2023)


Homeownership Rate: +65.9% (4Q22)

Rental Vacancy Rate: +5.8% (4Q22)


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. Tampa’s Multifamily Sector Thrives as Rent Growth Slows: Report

Despite a 0.5% decline in trailing three-month rental rates, Tampa’s multifamily sector had an average rate of $1,798 as of December 2022, with strong development and upscale inventory additions pushing stabilized property occupancy to 94.7%. In 2022, the multifamily transaction volume reached $4.6 billion, the second-highest in the last decade, with per-unit prices hitting an all-time high of $234,262. However, ongoing economic pressures may slow investment in the future. Tampa Bay’s development sector also had a successful year in 2022, delivering 7,268 units, accounting for 3.0% of existing rental stock.


9. Olympus Property Buys Luxury Angelene Apartments in West Hollywood

Olympus Property has acquired Angelene Apartments, a 179-unit luxury multifamily community in West Hollywood, Calif., with financing secured through Freddie Mac and brokered by Berkadia. The asset was last sold in 2020 to JPMorgan Asset Management for $124.7 million, according to Yardi Matrix. Angelene is located at 915 N. La Brea Ave., near Santa Monica Boulevard and Melrose Avenue’s 1.5 million sq ft of retail and restaurant space, and approximately 8 miles from downtown Los Angeles. Additionally, the community is only 3 miles from a luxury community that opened in September 2022.


8. Hunt Midwest and LANE4 Property Group to build luxury multifamily development 

Hunt Midwest and LANE4 Property Group are set to commence construction of The Hudson, a luxury 228-unit multifamily housing project in partnership with KU Endowment. The development will be located on the corner of 36th Street and Rainbow Boulevard in Kansas City, KS adjacent to The University of Kansas Health System campus. The new residential inventory aims to support professionals working in and around the campus while providing first-class amenities and easy access to nearby businesses, restaurants, and highways. The project is expected to provide housing options for thousands of residents in the heart of the Kansas City metropolitan area.


7. $10.1M multifamily property in Republic, MO sold

A regional investor sold Pinewood Park and Spring Hills, a 133-unit multifamily property in Republic, MO, to a Midwest-based private investor for $10.1 million. Northmarq represented the seller. The garden-style community was built in 2002 and offers floor plans ranging from 758 to 1,130 sq ft, as well as amenities such as a pool, sundeck, package service, and laundry facilities. 


6. New 388-unit multifamily development in Mansfield, TX set for development

A developer is seeking to build a 388-unit multifamily project on a 7-acre land in Mansfield, TX. Bridgeview Real Estate plans to replace the current entitlement for 330 multifamily dwelling units and would feature a four-story building attached to a five-story parking garage with two courtyard pools. The development’s ownership, which includes the Nelson Family Revocable Trust, is requesting a zoning change to add more multifamily units and to remove brownstones. The development will support the cost of a parking structure and provide nearby retail and commercial development. The Mansfield city council is set to vote on the project during its next meeting.


5. Multifamily housing complex in Corktown is set to open in the fall of 2023

The partnership of Oxford Capital Group, Hunter Pasteur, and The Forbes Co. has announced that the multifamily housing project Perennial Corktown in Detroit has topped off. The community plans to begin pre-leasing apartment units in spring 2023. The project is situated at 1611 Michigan Ave. and includes a seven-story apartment complex, seven townhomes, a three-story parking garage, and more than 12,000 sq ft of retail space. It is also adjacent to the Godfrey Hotel, a luxury lifestyle hotel developed separately by Chicago-based Oxford and Farmington Hills-based Hunter Pasteur, which is set to open this summer.


4. Nashville real estate market projected to remain strong

According to data from the U.S. News Housing Market Index, Nashville is poised to have a stronger property market in the coming years. The market is showing resilience, despite the challenges faced during the pandemic. Unemployment is low, and both consumer and builder sentiment have started to recover, albeit slightly lower than the previous year. The trajectory of interest rates is expected to play a significant role in the market’s direction in the coming months. According to forecasts, multifamily permits are predicted to decrease steadily in the coming months. As a result, inventory may remain in short supply, which could prevent significant price decreases, especially if the job market remains robust.


3. Security Properties invests in 28 properties with $200M multifamily fund

Seattle-based Security Properties has closed its latest multifamily fund, Security Properties Multifamily Fund VI, at $200 million. The fund invested in a total of 28 multifamily properties across the U.S., including existing apartment communities in 11 metros such as Nashville, Austin, and Salem, among others. Of the 28 investments, 26 had Security Properties as a co-general partner, while the remaining two investments were fully owned by the fund. The fund combined its $200 million equity with 13 institutional partners, acquiring $2.1 billion worth of multifamily properties totalling over 6,400 units.


2. Raleigh’s Multifamily Market Resilient Despite Economic Slowdown: Report

In 2022, the Triangle’s consistent investment kept its economy robust, leading to a 7.0% year-over-year increase in rents, 80 basis points higher than the national rate. However, the overall economic slowdown affected the market in the last quarter, with rents in Raleigh-Durham contracting by 0.4% to an average of $1,618. Despite this, the metro’s multifamily sector remained attractive to investors, with $4.1 billion in properties changing hands in 2022, following 2021’s record-breaking $5.5 billion total investment volume. Nevertheless, development activity decreased by 32.8%, with only 4,642 units delivered.


1. Atlanta topped U.S. markets for multifamily transactions in 2022

According to Yardi Matrix data, Atlanta ranked first in the list of metro markets with the largest sales volume in 2022. Atlanta’s multifamily market remained highly active, with almost $12 billion in sales, although lower than the $16.3 billion recorded in 2021. Over $4.4 billion of last year’s sales volume came from the RBN quality segment, with the working-class segment making up the majority of the market. Despite a 35% decline in the sale of upscale assets from the previous year, Atlanta’s investment market outranked its pre-pandemic peak of $7.9 billion in 2019. The average price per unit grew 8.6% YoY to $205,788, with Lifestyle assets rising by 13.6% to $259,582, and RBN units shooting up 18.9% to $154,310. Other metros that made the top 5 include Phoenix, Dallas, Houston and Miami.


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