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April 1, 2023 Weekly Investor Update

Life Bridge Capital Weekly Investor Update

April 1, 2023

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



Mortgage Rate (30-Year Fixed): 6.32% (as of 3/30)


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. Portland multifamily market remains resilient

Despite Portland’s multifamily market showing signs of softening in the fall of 2022, its annual rent growth remained strong at 7.2%, outpacing the US average by 100 basis points. The occupancy rate for stabilized properties also remained tight at 95.7% in November, indicating a healthy rental market despite a slight decrease over the year. Developers delivered 4,973 units in 2022, and there were 11,628 units under construction, with construction starts more than doubling in volume compared to the previous year. Investment volume amounted to $1.6 billion, with the average price per unit increasing by 7.9 percent to $287,557.


9. Houston multifamily firm purchases in Boerne

Allied Orion Group’s plans for the 30-acre property adjacent to Lemon Creek Ranch are currently unclear after purchasing it in early March. The property is located at 29340 Old Fredericksburg Road, and the firm specializes in multifamily investment, construction and property management. The Lemon Creek Ranch project is anchored by an H-E-B store and includes hotels, offices, and multifamily residences.


8. Colorado Springs multifamily properties sell for $74M

Multifamily communities Park at Penrose and Park at Palmer, located in the Palmer submarket of Colorado Springs, were sold for $74.1 million by an affiliate of The Axton Group and The Bascom Group. The two adjacent properties, with 374 and 112 units respectively, were purchased in June 2019 for $41.15 million and underwent renovations resulting in significant rent premiums. The properties are situated near shopping, dining, outdoor recreation, and employment opportunities, driving organic rent growth. The partnership enjoyed strong operating cash flow and re-financed the properties in February 2022. The Axton-Bascom partnership is focusing on value-add opportunities in the multifamily sector amid significant global macroeconomic pressures.


7. Dallas property investor to redevelop Farmers Branch apartments into upscale multifamily complex

Steve Wood, a Dallas-based real estate investor, plans to redevelop the class-C Havenhurst Apartments into a 296-unit upscale complex in the Dallas suburb of Farmers Branch. The project will be funded by Wood with silent partners and loans, and it is his first full-blown, ground-up development venture. The first phase of the project, which will cost around $30 million, will feature 176 units and will total 214,000 sq ft. The redevelopment is expected to attract renters looking for luxury amenities in the Farmers Branch area.


6. Private investor buys Riverside multifamily complex for $23.1 million

Dove Ridge Apartments, a 96-unit multifamily complex in Riverside, CA has been sold by the original developers to a local private investor for $23.1 million. The community comprises one- and two-bedroom units with amenities such as a pool, spa, laundry facility, and parking. The location near several colleges including UC Riverside, Cal Baptist University, and La Sierra University, as well as proximity to a mall and mass transit, makes it a valuable investment opportunity. The property built in 1987 also provides potential for rental upside through renovations of the interior and exterior. The sale highlights the strength of the Inland Empire market despite the increase in interest rates.


5. Eastern Union closes $28.1M loan for multifamily portfolio in Bridgeport, CT

Eastern Union, a commercial real estate finance firm, recently closed on a $28.1 million loan to support the purchase of a multifamily portfolio in Bridgeport, CT. The portfolio, which comprises 13 properties and 437 residential units, was purchased for $39.6 million, but the buyer was not disclosed. The pre-sale owner was Rhodium Capital Advisors, according to Yardi Matrix. The financing, which was provided by KeyBank, is made up of three individual loans of $11.8 million, $9.3 million and $6.9 million, with a 10-year interest-only period and a 30-year amortization period, at a 5.25% interest rate.


4. Orlando multifamily investment volume rises

Orlando’s multifamily investment volume increased by nearly 10% to $6.5 billion, pushing the metro up two positions in the 2021 ranking, according to Yardi Matrix data. Both the Lifestyle and RBN segments experienced an increase in sales volume, with per-unit prices growing in both segments. The average price per unit in Orlando rose 16.8% to $242,914, which is higher than the national average. Despite a drop in the number of properties traded last year, the total number of units traded amounted to 28,590.


3. Population boom driving multifamily demand in Nashville

Markerr, a data analytics firm serving owners and operators of residential real estate properties in Nashville and across the United States, has unveiled its projections for the multifamily market in 2023. According to the report, Nashville is poised to have the highest supply as a percentage of inventory in the nation, with a projected rate of 9.5 percent in 2023, up from 6.9 percent in 2022. The top-ranking markets in the forecast, in addition to Nashville, are expected to include Boise, Provo, Colorado Springs, and Raleigh. According to Markerr’s Galen Faurot-Pigeon, population growth and demand for urban living have been major drivers of the city’s multifamily boom, as Nashville has experienced a surge in both job growth and population in recent years. In addition, he noted that government incentives and public-private partnerships have helped spur development in certain areas of the city. 


2. Seattle’s multifamily occupancy increases

Seattle’s multifamily market experienced a decline in rent growth by 0.6% on a trailing three-month basis in December due to the deteriorating economic landscape. However, the average occupancy rate remained robust with only a 50 basis point year-over-year decline as of November. Developers delivered 12,400 units in 2022 with another 26,400 units in progress. While the number of construction starts decreased from the prior year, investors traded $4.4 billion in multifamily assets, and the average per-unit price rose 6.1% YoY to $392,968, which is well above the national average.


1. North Jersey is the most competitive rental market in the U.S.

RentCafe’s report found that Northeastern rental markets have become more popular among renters, with Sun Belt metros maintaining their strong position. The report analyzed 134 of the largest rental markets across the country, evaluating five metrics to determine their competitiveness: average number of days an apartment remains vacant, market occupancy, number of prospective renters competing for an apartment, percentage of renters that renewed their leases, and the share of available apartments that came online in the quarter. North Jersey, NJ has become the most competitive rental market, with an RCI of 115, overtaking Miami-Dade County. Renters are seeking out popular alternatives to Manhattan, such as Jersey City and Newark, leading to high demand relative to new supply. Only 0.3% of the total available apartments were completed in the first quarter, 10 basis points less than the U.S. average, contributing to the high competitiveness of the market.


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