Realpage Webcast Replay – Market Intelligence 2023 – A Year in Review

This was an awesome webcast with such impactful and insightful research from Charles and Jay. 

Just a first class review by Realpage and a nice look into metrics for 2024.

https://www.realpage.com/webcasts/market-intelligence-year-in-review-2023/

Here are a few Realpage webcasts to choose from….

https://www.realpage.com/webcasts/

U.S. Rents Fall for First Time in 3 Years

By Kerry Smith via floridarealtors.org

Study: March asking rents fell 0.4% to $1,937 year-to-year, the lowest level in 13 months. But 4 Fla. cities in the study saw increases ranging from 0.7% to 3.9%.

The median U.S. asking rent fell 0.4% year-over-year to $1,937 in March – the first annual decline since March 2020 and the lowest median asking rent in 13 months, according to a report from Redfin.

One year earlier – in March 2022 – rents were up 17.5% year-to-year.

Rent rose in all four Florida cities included in Redfin’s study, however. None made the top 10 “rent declines” or “rent increases” list.

Florida metro year-to-year rent changes 

• Tampa: Up 3.9% to $2,222
• Orlando: Up 2.0% to $2,128
• Jacksonville: Up 1.7% to $1,633
• Miami: Up 0.7% to $3,074

Nationally, rents didn’t change month-to-month. Overall, median asking rents are $322 higher  (19.9%) than they were at the start of the pandemic three years earlier.

“Rents are falling, but it feels more like they’re just returning to normal, which is healthy to some degree,” says Dan Close, a Redfin real estate agent in Chicago. “It’s similar to the cost of eggs. You can say egg prices are plummeting, but what’s really happening is they’re finally making their way back to the $3 norm instead of $5 or $6. Rents ballooned during the pandemic and are now returning to earth.”

Rents surged during the past two years because incomes increased and household formation rose as more millennials started families. But household formation is now slowing, partly because many people are opting to stay put rather than move during a time of economic uncertainty.

Why are rents moderating?

Rents declined year-to-year in March largely due to a surplus of supply resulting from the pandemic homebuilding boom. The number of multifamily units under construction and completed each rose to almost a more-than-three-decade high in February, the latest month for which data is available.

Completed residential projects in buildings with five or more units jumped 72% on a seasonally-adjusted basis to 509,000, the highest level since 1987 with the exception of February 2019. And newly started projects in buildings with five or more units rose 14.3% to 608,000, the highest level since 1986 with the exception of April 2022.

The short-term rental market similar. The Airbnb market is oversaturated with supply, and authorities are imposing tougher restrictions on hosts in some areas outside Florida, driving some owners to lower rents or sell.

The overall rental market is also cooling because still-high rental costs, inflation, rising unemployment and recession fears are causing rental demand to ease. Rental vacancies are on the rise, prompting some landlords to cut rents and/or offer concessions like discounted parking.

Rents declined in 13 major U.S. metro areas

1. Austin, Texas: down 11%
2. Chicago: down 9.2%
3. New Orleans: down 3%
4. Birmingham, Alabama: down 2.9%
5. Cincinnati, Ohio: down 2.9%
6. Sacramento, California down 2.8%
7. Las Vegas: down 2.4%

For the remainder of this article and other similar stories, CLICK HERE <——

Fair market rents in Sarasota region up nearly 35% over 2019

Although home prices are stabilizing, fair market rents in the North Port-Sarasota-Bradenton metro area are up by 34.5% over 2019 as market pressures continue in the wake of the pandemic.

via yourobserver.com – written by Andrew Warfield 12/4/22

When it comes to fair market rent, the North Port-Sarasota-Manatee metropolitan statistical area finished just outside of the top 15 among midsize metro areas in increases since before COVID-19, according to a new study by trade publication Construction Coverage.

Since 2019, the region has seen an increase of 34.5% compared to a national average of 24%. Fair market rent is an estimate of the cost of gross rents (rent and utility expenses) on 40% of the rental housing units in an area. It serves as the basis for several Housing and Urban Development calculations, including Section 8 vouchers.

Even as housing prices cool, rents continue to rise. Since 2019, some local housing markets are seeing rent increases in excess of 50%.

Although Florida has four regions ranking among the top 15 large metros and two among midsize metros, renters in Arizona and Nevada have contended with the largest rent increases in the country at 53.9% and 48.4%, respectively. At the opposite end of the spectrum, rents rose  5% in Alaska since before the pandemic.

Housing stock pressures in high in-migration states such a Florida are exacerbated by the growth in the number of households which grew by 750,000 from 2020 to 2021, according to the U.S. Census Bureau. In addition, many would-be buyers priced out of the housing market continued renting, placing additional pressure on rental supply.

Average fair market rent

	North Port-Sarasota-Bradenton	National average
Studio	$1,065	$1,074
One-bedroom	$1,277	$1,177
Two-bedroom	$1,593	$1,427
Three-bedroom	$2,112	$1,863
Four-bedroom	$2,514	$2,159

In Florida, top 15-ranked large metros for increases in fair market rent are:

• Tampa-St. Pete-Clearwater: No. 3 at 46.9%
• Orlando-Kissimmee-Sanford: No. 8 at 35.8%
• Jacksonville: No. 9 at 33.8%
• Miami-Fort-Lauderdale-Pompano Beach: No. 13 at 31.5%.

Among midsize metro areas are:

• Cape Coral-Fort Myers: No. 5 at 39.5%
• Palm Bay-Melbourne-Titusville: No. 10 at 37.7%

To determine the metro areas with the largest increase in fair market rent since 2019, Construction Coverage analyzed data from the HUD and the U.S Census Bureau, ranking them according to the percentage change in costs. The complete report can be viewed here.

Hurricane Ian Updates and some local videos and live webcam (Siesta Key)

Siesta Key Live Webcam below – You have to click on the ‘Watch on Youtube’ link to access but if the link is available with storm, its a good view.

Multifamily 2022 Outlook

EMPLOYMENT – 66,000 Jobs will be created

The pace of hiring exceeds the national

rate by more than 2 percent, as local

employers expand headcounts by 4.6

percent this year. Unemployment in

the metro was at 3.0 percent entering

March, 40 basis points below the pre-

COVID-19 rate.

CONSTRUCTION – 6,500 Units will be constructed

Supply additions exceed the 6,000-

unit mark for the second straight

year, as developers increase rental

inventory by 2.4 percent in 2022.

Completions in New Tampa-East

Pasco County will surpass 1,000 units

this year for the first time on record.

VACANCY – 10 basis point decrease in vacancy

Renter demand outpaces deliveries in

2022, supporting a third consecutive

year of annual vacancy compression

in Tampa. By the end of the year,

availability will fall to 2.1 percent, 260

basis points below the metro’s yearend

2019 rate.

RENT – 13.7% increase in effective rent

Record-low vacancy rates dissipate

the need for concessions, stimulating

annual rent gains for the 13th year in a

row. The average rate will reach $1,876

per month in 2022, ranking Tampa

third among all major United States

markets in rent growth this year.

Elevated Migration Trends Bolster Renter Demand

and Investment Activity in Tampa-St. Petersburg

Constrained housing market benefits rentals.

Tampa-St. Petersburg experienced its largest spike in new apartment leases

on record over the past year ending in March, with renters

absorbing more than 11,200 units during this span. Entering the

second quarter, availability was at 2.1 percent — the lowest rate

in over two decades. The entire metro is experiencing record

levels of rent growth, with all 15 submarkets registering gains

that exceeded 20 percent over the past year. The extremely tight

single-family housing market is greatly benefiting multifamily

fundamentals in Tampa. As of February, there were just over

3,000 active single-family listings throughout the market, compared

to the 16,000 listings during the same month in 2019. This

is creating challenges for prospective entry-level home buyers,

further bolstering demand for rentals.

Forecasts and Research provided by Sources: BLS; CoStar Group, Inc; Realpage, inc.

To learn more about your properties current range of value, visit DPCRE here

Affordable housing contrasts in Sarasota, Bradenton

Shining a light on this article once more as the contrasts continue to sharpen and widen.

By Chris Wille
Business and Real Estate Editor

While an affordable housing development in Sarasota gets scrapped, Bradenton getting a major lift

A proposal for a significant addition to Sarasota’s affordable housing stock, already critically inadequate like elsewhere in the country, has been shelved as impractical because of financial and regulatory hurdles. Instead, One Stop Housing is pursuing an entirely different concept for a portion of its property just east of downtown on Fruitville Road.

Meanwhile, construction on a similarly large development in the city of Bradenton progresses toward an August completion, and on May 2 the Miami-based developer, the Housing Trust Group, received the Manatee County Commission’s unanimous and laudatory approval for another big rental complex.

While One Stop Housing and HTG both concentrate on creating affordable housing, the two companies secure financing in contrasting ways. Various federal, state and municipal funds and tax credits support the Miami company’s construction of The Addison. Those come with restrictions on income limits that keep units affordable for decades. One Stop uses private capital (from its own resources, aided by angel investors and bank loans), is not bound by government income rules and does not ask to review income documents of its tenants. The company only works with cities for relief on impact fees.

For complete article and others similar to this<————– CLICK HERE 

More than a decade in the planning, the late Harvey Vengroff’s Sarasota Station, a planned 368-unit apartment complex, finally fell victim to impact fees, which put the cost per unit outside the affordability range that One Stop Housing charges at its converted motels and other apartments.

But that’s not keeping One Stop Housing from expanding its collection of below-market-rate rentals. Mark Vengroff, Harvey’s eldest son and an owner/partner in One Stop Housing along with his brother, Travis, intends to complete his father’s plan for new construction at Robin’s Apartments in Manatee County just outside of Bradenton.

The converted motel currently holds 240 units with rents of $700 and $725. “That’s all inclusive,” Vengroff said in an interview. Tenants do not pay for water, electricity, cable or internet.

“We are definitely planning to build 200 two-bedroom units on the vacant land there,” he said. “We’re working on the design phase now.”

One Stop Housing’s headquarters is in a converted motel on North Tamiami Trail within walking distance of the University of South Florida Sarasota-Manatee and New College. University Row currently holds 101 furnished efficiency and one-bedroom units.

“Here we want to build another 16 units,” Vengroff said. The mixed-use building will contain offices intended as an “incubator for businesses,” he said, adding that an insurance company is already in the complex.

More units in Bradenton

Bradenton will soon have The Addison, on the southeast corner of Sixth Avenue East and Ninth Street East, a prime location for employees of Manatee Memorial Hospital and Tropicana. The mixed-use, mixed-income, five-story building is 72% complete, Matt Rieger, the president and CEO of the Housing Trust Group, said in a phone interview from Miami.

HTG’s next Manatee County development will be the recently approved Oaks at Creekside, an apartment complex of four three-story buildings on 16.3 acres at 3505 53rd Ave. E.

The 96 apartments will include one-, two- and three-bedroom units ranging from 673 to 1,150 square feet. Rents will be priced for households with incomes ranging from $15,000 to $42,000. Amenities will feature a clubhouse, picnic and barbecue pavilion, swimming pool, playground and gazebos.

Because financing for the Oaks at Creekside included federal tax credits from the Florida Housing Finance Corp., the project must meet affordability criteria for 50 years.

HTG, the top affordable housing developer in Florida and one of the largest in the nation, broke ground on The Addison June 4, 2018. The complex will feature 77 affordable apartments and 13 market-rate units, with monthly rents ranging from $328 to $1,400, depending on resident income. Nine units will be set aside for residents earning at or below 35 percent of area median income; 68 will be for residents earning at or below 60 percent of AMI; and the remaining 13 will be market-rate units. The Sarasota-Manatee AMI is around $70,000.

The one-, two- and three-bedroom units range in size from 660 square feet to 1,065 square feet. Amenities will include a fitness center, club room, locker storage, resort-style pool, dog park, playground, media center, and 600 square feet of retail space.

The company holds high standards in its construction. “We always want to build to that next level,” Rieger said. “That’s very, very important to us.”

The Addison is being financed with a $15.5 million construction loan from Fifth Third Bank; approximately $14.57 million of 9 percent housing credit equity from Raymond James Tax Credit Funds; a $2 million State Apartment Incentive Loan (SAIL); a Community Development Block Grant loan from the city of Bradenton; and a $5.125 million permanent loan from SunTrust Bank.

“It’s extraordinarily difficult to secure the financing,” Rieger said. “We oftentimes compete for this precious resource at the state level. For example, there are 50 applications for two developments that are going to get funded.”

Oaks at Creekside apparently won’t be HTG’s last development here. “We’re looking at several other opportunities,” he said. “We were really close a year ago … but unfortunately that did not come to fruition.”

 

For complete article and others similar to this <————– CLICK HERE 

Different outcomes, visions

Manatee County moved quickly to change regulations, approve zoning changes and promote One Stop’s Robin’s Apartments project. “Manatee County’s been phenomenal to work with,” Vengroff said.

The Sarasota Station project began a decade ago. It took that long to secure a zoning change, Harvey Vengroff said in an interview months before his passing. In Manatee County, zoning approvals took six months.

 

For complete article and others similar to this <————– CLICK HERE

Concerning Headlines in Multifamily

Some RED HOT  Headlines from recent sales of Apartments in Florida

 

JUST SOLD | 200-Units in Lakeland, FL | 4.7% Cap Rate

♦ A 200-Unit Apartment Community Built in 1974

♦ Closed at a 4.7% Trailing Cap Rate

♦ Concrete Block Construction

♦ Some of the Lowest In-Place Rents in the Immediate Submarket

♦ 70% Two- and Three-Bedroom Floorplans with an average of 890 RSF

♦ Value-Add Opportunity through Interior and Exterior Enhancements

 

JUST SOLD | 9 Units in Largo, FL (Tampa Bay MSA) | Highest Price Per Unit for 1960’s Built Community in Largo History

♦ 9-Unit Multifamily Community in Largo, Florida (Tampa Bay MSA)

♦ $93,888 Per Unit, Highest Price Per Unit for 1960’s Built Asset in Largo History

♦ Closed at 99.4% of List Price

♦ 33 Days from Contract to Closing

 

JUST SOLD | 120 Units in Tallahassee, FL |

Record Breaking $85,416 Per Unit | 264 Buyers and 13 Offers Generated

♦ 1988 Built Class “B” Community In Tallahassee, Florida’s State Capital

♦ Sold at $85,416 per Unit – Highest Price for a 1980’s Built Market-Rate Community in Tallahassee

♦ 264 Registered Buyers and 13 Offers Generated Through Meoli | Donaldson Partners’ Proprietary Database

♦ Buyer Closed at Contract Price and Terms

♦ Over $1.5 Million In Recent Capital Improvements

♦ Diverse Unit Mix With 67 Percent Two-Bedroom and Two-Bathroom Units

 

Laurel Park Downtown Sarasota 4 Unit! $710,000 | Record High $177K per Unit! Our team handled both sides of the transaction, and the marketing of the asset generated 125 registered buyers, in 7 different states!

 

$2,200,000 | 16 Units Osprey Florida

Highest Price/Unit Multifamily Property over 5 units in Sarasota County!! 

The highest priced property was actually a 13-unit that sold for $1,987,000 or $152k per unit but the point being properties are selling at numbers near or at the peak.

 

SOLD : 4-units in laurel Park

$750,000

$187,500 per unit

$254 Per SF

 

To sell your property, contact Sean Dreznin at SBR Commercial via email sean@sbrcommercial.com

or

(941) 961-8199

Sarasota multifamily complex sells for $5.1 million

By John Hielscher – Staff Writer 

Saulstars Court attracted multiple offers and sold for 10 percent more than its asking price, according to agents

SARASOTA — A 54-unit rental duplex complex has sold for $5.1 million.

Saulstars Court, 3400 Tyne Lane, attracted multiple offers and sold for 10 percent more than its asking price, according to agents from Ian Black Real Estate who handled the transaction.

“We fielded more than 10 written offers in the first two weeks from individual and institutional buyers,” said George Kruse, investment sales associate at Ian Black. “This property hit a sweet spot in the market due to its middle-market size of between 10 and 100 units and its price point.”

The 27-duplex community is on 6.5 acres east of Honore Avenue and north of Bee Ridge Road. Occupancy was over 90 percent, with some units being held back for renovation.

The property was first listed for $4.6 million.

… click here for complete article

The sale reflects the rising prices in the multifamily market here, said Kruse, who handled the deal with colleague Sean Dreznin.

“While the focus has been on the supply of new construction in the market, the other side of the multifamily investment market is re-sales,” he said. “We are seeing a severe lack of inventory in the middle-market apartment space. This is driving more interest to any opportunity that comes to market and further increasing the prices buyers are willing to pay due to the lack of alternative options.”

If you’re considering listing and selling your apartments, contact Sean Dreznin and George Kruse.  

Srqcre@gmail.com

Gwkruse@gmail.com

http://heraldtribune.com/news/20170726/sarasota-multifamily-complex-sells-for-51-million

Demographic Shift, Investor Demand Reshaping Broward’s Apartment Market which shows similarities to Pinellas & Sarasota counties.

Pic credit – Jason Ludwig

PUBLISHED: JUL 17, 2017

Broward County multifamily housing and retail is undergoing a remarkable transformation as millennials and empty nesters are embracing urban living and young professionals seek similar experiences in suburban settings.

Having been built out for some time, much of the development in Broward has shifted from gated communities in western suburbs to multifamily housing in the urban core. About 4,000 condominium and apartment units in 20 blocks of Fort Lauderdale are set to come online in the next few years. 

Most of the new properties will resemble The Manor at Flagler Village, a mixed-use complex with residential units between 700 and 1,350 square feet. Rents range from $1,826 to$2,921 per month, about 30 percent higher than other nearby Class A buildings. The retail component, which is managed by Franklin Street, occupies the first floor and includes popular restaurants such as The Brass Tap, a craft brewery and Mellow Mushroom. Other service-based retailers range from a dentist office and fitness center to nail and hair salons. Nearby is a Fresh Market grocery store, a museum and parks. These amenities appeal to millennials. 

Young adults are looking for the best apartment spaces available regardless of unit size. Millennials care more about the fact that there’s a restaurant that they like in the lobby and Wi-Fi access throughout the entire building.

Their interests are altering the retail environment. Traditional retail is being replaced with service-oriented businesses where people can eat, have a drink, get their nails done or meet with a financial advisor.

Baby boomers want similar amenities. Many retirees are selling their four-bedroom houses in the suburbs and moving into an apartment where they don’t have to worry about things like lawn care. They can travel for pleasure or to visit grandchildren and want the freedom that comes from not owning a home. 

Thanks 

As part of the population move to the downtown core, more people are doing something unusual in South Florida: they are giving up their cars. With easy access to ride-sharing programs, consumers are taking the money budgeted for a vehicle and putting it toward rent instead. 

Broward municipalities such as Coral Springs and Plantation are following suit. An urban core is emerging in Coral Springs centered around a new downtown city hall that is under construction and over 300 apartments have been built. One is Bainbridge at Coral Springs, a five-story development with top-of-the-line amenities and rents $300-$700 a month less than in downtown Fort Lauderdale.

Properties like that attract young professionals. Millennials that have small children prefer neighborhoods with A-rated schools. While some couples have started families, they are still active and want to go out and socialize with their friends in places like those in downtown Fort Lauderdale.

They’re attracted to places such as Plantation Walk, which will go up on the site of the former Plantation Fashion Mall. Plans call for 700 rental apartments, 200,000 square feet of retail and a Class-A office tower. It appeals to young people who don’t want to travel 25-plus minutes to downtown Fort Lauderdale for work or fun. They would prefer a short walk or ride to their office and to have restaurants, bars and shopping close to home.

Multifamily investors have noticed the trend and started to grow their portfolios. Demand has so outstripped supply that an investor that would normally purchase a Class A or Class B property in an established area is going out of their comfort zone and buying a Class C property in an emerging neighborhood.

In Broward County, much of the buyer interest is coming from out-of-area investors working with local conduits. When Franklin Street recently marketed 167 units in downtown Plantation, we garnered about 17 written offers in two weeks, half of them from investors in New York, Philadelphia, New Jersey and Canada.

Outsiders are active in Florida for two reasons: The first is cap rate compression. Investors are seeing deals at 1 to 2 percent, and at zero percent in some cases in New York. Florida cap rates are also being squeezed, but they are still at 5-6 percent.
Second, Florida offers significant tax benefits. Out-of-state investors can re-capitalize their portfolios, sell their properties at a premium, come down here, and trump everybody at the local market level.

Today’s investors are not looking for immediate cash. Many are buying properties in neighborhoods that they think are up and coming. These buyers expect that their apartments or mixed-use buildings will be smack in the middle of a redevelopment play five to 10 years down the line. Given current trends, they are likely to be right.

 

Credit:

HERNANDO PEREZ AND DAN DRATCH

Source:

Southeast Real Estate Business

URL:

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Multi-Family Complex Sold for $445,000

Building 1

Building 2

A Chicago couple recently purchased the four-unit multi-family complex located at 2027 Fiesta Drive, Sarasota, for $445,000.

By 941 CEO Staff 2/23/2017 at 2:32pm

A Chicago couple recently purchased the four-unit multi-family complex located at 2027 Fiesta Drive, Sarasota, for $445,000.

The property includes two single-story duplexes totaling 3,012 square feet on a .3-acre parcel.

Sean Dreznin, a sales agent with the commercial real estate firm Ian Black Real Estate, represented both the buyers, Eric and Shelley Swanson, and the seller, Beverly Meadows, in the transaction.

Dreznin focuses his real estate practice on the sale of investment and multi-family properties between St. Petersburg and Naples.