WEEKLY
Mortgage Rate (30-Year Fixed): 6.32% (as of 2/16)
MONTHLY
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: +7.7% YoY (December 2022)
New Residential Housing Starts: 1.339 million (January 2023)
New Residential Housing Completion: 1.406 million (January 2023)
QUARTERLY
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.
Multifamily brokerage firm Capstone Companies announced the successful sale of the $28.2-million The Metro in St. Petersburg, FL. CC set a record for Pinellas County when it commanded $655 per sq ft for the seven-story, all-studio furnished apartment community. The company saw continued multifamily demand in the Gulf Coast of FL and was motivated to pursue the deal because it considers it as a “significant premium to the current market.”
9. Allendale, NJ welcomes 70-unit multifamily project
A 70-unit multifamily community will be constructed in Allendale, NJ, according to private real estate investment firm The Hampshire Companies. The 104,620-sq-ft community is expected to be completed by 2024. Situated at 220 West Crescent Street, it sits near downtown Allendale and Route 17, making it easy to connect to the Garden State Parkway and Interstate 287.
8. Des Moines area will add new multifamily developments
CBRE’s multifamily market report reveals that more than 1,600 multifamily units will be added to the current pipeline in Des Moines, Iowa after low vacancy rates and high mortgage loans for single-family properties continue to drive demand for multifamily properties. The report adds that in 2022, only 1,006 units were completed, which is 57% fewer than the 2,317 units built in 2019. Cy Fox, senior vice president at CBR said, ““We expect to see construction levels remain below historic averages for the next 12 to 24 months. There’s limited land availability in some parts of the metro area.”
7. Northmarq arranged financing for 151-unit Newington multifamily project
Northmarq announced that it has arranged $37.5 million in financing for developer Smith & Henry for a Newington, CT multifamily project. The amount is 85% of the total project cost of the 151-unit The Pike. It will have one- and two-bedroom units complete with amenities such as green outdoor recreation areas. The bank and private equity were undisclosed. Construction is expected to be completed within two years.
6. JLL arranges $10.2 million loan for Denver multifamily development
JLL Capital Markets has reported that it secured $10.2 million in permanent financing for mid-rise apartment Tennyson44. Situated in West Denver’s Berkeley neighborhood, the project was completed in 2018 and consists of 47 apartments with amenities. Other details of the financing were withheld as of this writing.
5. Investment firm invests $15.5 million in California multifamily property
Multifamily housing investment firm Clear Capital reported its successful acquisition of the 124-unit Aspire Seneca. The apartment community in Victorville, CA, which was built in 1984, was purchased for $15.5 million, and is the company’s 14th asset in the state – its 39th investment offering overall. It consists of 124 one-, two-, and three-bedroom units, complete with amenities. The area is in a central location with easy freeway access.
4. Berkadia forecasts multifamily to return to pre-pandemic levels
During Berkadia’s semi-annual survey of internal investment sales advisors and mortgage bankers, the company reported that it expects the multifamily market to sustain its strong performance and will return to its pre-pandemic levels. The group also revealed recent survey results, which indicate that rental pricing will be supported by the excess multifamily demand and low supply in the coming months. Results also indicated that cap rates will be rising this year.
3. Boise multifamily project secures financing
Cushman & Wakefield has reported that it is now the exclusive advisor to Hawkins Companies in the acquisition of the 287-unit Canyon Ridge located on Gowen Road in Boise, ID. The five-building development’s loan will come from Sunwest Bank.
2. Georgia multifamily acquired for $62 million
ARC Multifamily Group has received $62.4 million of acquisition financing from PPM America for the acquisition of The Blakely in Pendergrass, GA. The garden-style apartment is situated at 542 Glen Gee Road, approximately an hour northeast of Atlanta. The development offers a combination of one-, two- and three-bedroom units with amenities. It has a four-phase completion schedule.
1. US multifamily rent growth begins 2023 strongly
CoStar has reported that monthly apartment rents have risen nationwide by 0.4% in January, the strongest showing since August 2022. The group announced that the overall rent growth downward spiral is about to end after the five-month low trend was cut off at the beginning of the year. As vacancy dropped to 6.4% from 4.9% in the last five months, the surge in demand in January will pave the way for further upswings in rent growth across the country.
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