BALTIMORE, MD – In a go to expand and enhance its holdings, Baltimore based Sage Management has bought two communities, which will be owner managed; Midtown at Camp Springs Apartments and Falcon Crest Apartments. 

Midtown at Camp Springs Apartments, built in 2008, is located near the Branch Avenue Metro and includes 1400 square feet of retail space. This property is the first community owned and managed by Sage Management in Prince Georges County.

“We are proud to be able to play a part in and support the ongoing redevelopment of this area in Prince Georges County,” said Gil Horwitz, President, Sage Management. “This is an exciting development for our firm and we look forward to being an active member of the community.”

Midtown at Camp Spring was bought earlier this year and Sage Management has already increased occupancy and lowered turnover by developing close communication with residents. This communication has resulted in the development of practices and policies in response to resident concerns including the addition of recycling services, re purposing an under-used basketball court into a dog park and initiating a professional and responsive service schedule. “By maintaining an open line of communication, we hope to build a right sense of community in which all residents feel valued and appreciated,” said Horwitz. 

Additionally, greater value is being added to the property by actively investigating tenants for the long vacant retail space. There are plans to announce new tenants for the space in the near future.

This same commitment to residents and the opportunity to make a community asset were two of things that made the buy of Falcon Crest Apartments enticing for Sage Management. Built in 1968, Falcon Crest is located in Owings Mills, Maryland and after years of neglect and deferred maintenance, many of the residents had lost faith in management and ownership. Upon buy of the community, Sage Management started an extensive renovation, including updated kitchens, finishes, lighting and improved landscaping. Plans are already underway to renovate the leasing center space to include an amenity space available to the residents. 

The property joined the portfolio this summer. “As a company, we are committed to providing quality living for residents by enhancing their living experience with improved apartments and management,” said Horwitz. He noted that residents are already responding to this new experience positively. “Residents stop by the office to express their appreciation, which is a tremendous testament to the hard work and dedication of our on site team.” 

Sage Management LLC was founded in 2004. One of the cornerstones of the company’s success is a continued emphasis on the importance of the resident experience as well as a dedication to enhancing the value of assets through solid management practices and decisions. 

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NEW YORK, NY – Since the end of the financial crisis, monthly rents for New York City apartments listed on StreetEasy increased 31 percent or $653, according to StreetEasy’s annual rent affordability study. While the pace of rent growth has varied widely across neighborhoods — from 15 percent in Ridgewood, Queens, to 45 percent in Ditmas Park, Brooklyn — rents are growing fastest in areas with higher shares of low-income residents and renter households with children.

Rents in neighborhoods where families make up at least 25 percent of residents grew 32 percent on average, 5 percent quicker than neighborhoods where less than one quarter of residents had children. Manhattan neighborhoods including Midtown, Gramercy Park, and the Financial District, where less than 10 percent of renters have children, were among the neighborhoods with the slowest-growing rents. Outer-borough areas such as Ditmas Park, Elmhurst, and University Heights, where more than a third of renters have children, were among the neighborhoods where rents rose the most.   

Rent increases have also hit low-income households especially hard. In the neighborhoods with household incomes below the city’s 2010 median of $50,285, rents grew by 33 percent. Over the same 10-year period, rents in neighborhoods with an above-median income grew by just 27 percent — 6 percent slower. For a household spending $2,000 per month on rent in 2010, this 6 percent additional growth adds up to an additional $125 per month or $1,500per year in 2018. In neighborhoods like Prospect Lefferts Gardens and Midwood, dozens of apartments now question for rents more than 40 percent higher than at the beginning of the decade.

“Rents have risen in the city, but not all New Yorkers have felt the same effects,” says StreetEasy Senior Economist Grant Long. “Residents who already struggle to make ends meet and renters dealing with the high costs of childcare are predominantly living in areas that see the most dramatic rent growth. These are often residents who have small financial flexibility to start with. As a greater share of their incomes goes towards rent, it’s increasingly hard for families to save for a down payment on a home, their children’s college education, or emergencies.”

The StreetEasy study also reveals some of the impacts of zoning changes around the city. Seven of the top 10 neighborhoods with fastest rent growth were in part downzoned over the last two decades, limiting growth in the supply of housing. Meanwhile, three of the 10 neighborhoods with slowest rent growth — Long Island City, Dumbo, and the Upper West Side — were in part upzoned between 2007 and 2009. Taken together, these findings suggest that the zoning-related supply factors in some areas of the city may have played a role in mitigating or accelerating overall rent growth.

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JACKSONVILLE, FL – New York-based Atlas Real Estate Partners has bought Pier 5350, a 400-unit garden-style apartment community located in Jacksonville, FL. The Property is located on the St. John’s River with sweeping views of Downtown Jacksonville.

Atlas intends to implement a significant value-add renovation program. “We’re very excited about unlocking what we reckon is some incredible potential in the property. Pier 5350 perfectly fits our investment strategy of acquiring class B apartment communities at a significant discount to replacement cost that can be repositioned to make additional value” said Arvind Chary, Managing Partner at Atlas.

“We’ve engaged a fantastic team and we’re excited to do our value-add strategy,” said Bill McConaghy, Atlas’s Florida VP. “We believe there are numerous opportunities to make value and improve operations. Our business plot is to take care of all deferred maintenance, upgrade the amenities, renovate unit interiors, and make cosmetic enhancements, with the goal of offering residents a newly renovated property, with incredible access to Downtown, at a value price point.”

“Downtown Jacksonville is going through a revitalization and beginning to attract young professionals seeking a live/work/play environment,” said Alex Foster Managing Partner at Atlas. “The location, community focus, high-quality amenities, and newly renovated interiors will make Pier 5350 attractive to lifestyle focused residents seeking a fantastic value.”

This is Atlas’ first multifamily acquisition in Jacksonville, and fifth in Florida, where they now own over 1,500 units. Atlas is looking to grow its Florida platform significantly over the next few years.

The acquisition was financed with a 12-year fixed-rate Freddie Mac loan originated by Mitch Sinberg and Matt Robbins of Berkadia Commercial Mortgage.

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