IRVINE,CA – Ten-X Commercial, the nation’s leading online and only end-to-end transaction platform for commercial real estate, released its latest U.S. Apartment Market Outlook, including the top five Buy and Sell markets for multifamily real estate assets. The report shows a U.S. multifamily market grappling with robust supply as vacancies have climbed 40 bps in the past year and are projected to soar by another 110 bps by 2021. 

“Completions have outstripped absorption for six straight quarters, while absorption has slipped to its lowest level in more than five years,” said Ten-X Chief Economist Peter Muoio. “While today’s sub-5 percent vacancy rate is relatively low from a historical perspective, vacancies have climbed to their highest level since 2012 amid this new supply.”

Ten-X Commercial identifies Houston, Raleigh-Durham, N.C., Salt Lake City, Fort Worth Texas and Charlotte, N.C. as top markets where investors should consider buying multifamily assets. These markets continue to delight in significant demand, which is underpinned by resilient local economies.

Miami, San Jose Calif., New York City, San Francisco and Oakland, Calif. are the top markets where conditions might cause investors to consider selling multifamily properties. These cities face rising vacancies and flattening rents as a wave of new supply is hitting the market — a situation which has not improved in the past six months and shows no signs of abating.

Nationally, multifamily completions should reach an all-time peak in 2018 as more than 300,000 new units flood the market, outpacing even the highest absorption levels in recent history. As a result, vacancies are expected to drift above 5 percent by the end of the year for the first time since 2011.

Ten-X Commercial incorporates cyclicality into its forecast model with a stress test in 2019-20, a scenario meant to estimate recessionary conditions rather than serve as a temporal prediction. Absorption is seen remaining positive but slowing amid the downturn scenario, lifting vacancies to the mid-6 percent range by 2020. Demand is projected to improve at the onset of recovery in 2021, bringing vacancies back below 6 percent, though they are forecasted to end more than 100 bps above their current level.

U.S. apartment rents saw 3.9 percent annual growth in the first quarter, jumping to a record $1,321 per unit. This marks a notably cooler growth pace since rent growth peaked at nearly 6 percent in late 2015. Rent growth is forecasted to continue cooling through the recessionary scenario before returning to the low 2 percent range at the onset of recovery in 2021.

The multifamily sector’s overall deal volume totaled $35 billion during the first quarter, a 27 percent increase from the same period in 2016. From Q1 2018 to Q2, the overall number of multifamily properties transacted via all three transaction solutions on the Ten-X platform increased by 33 percent. Multifamily properties transacted via Ten-X Commercial’s Live Bid solution rose by 12.5 percent over the same time frame while the numbers of bidders grew by 10.4 percent, further showcasing the rise of interest in the multifamily sector. 

“While millennials and other demographic groups continue to forego homeownership in favor of renting in walkable neighborhoods, developers appear to have gotten ahead of themselves in making rental supply,” said Ten-X Chief Economist Peter Muoio. “The pipeline can reasonably be described as a flood and though demand for these units is likely to come in the years ahead, we can expect to see some significant digestion issues in the near term.”

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ATLANTA, GA – GTIS Partners, a real estate investment firm headquartered in New York with offices in São Paulo, San Francisco, Los Angeles, Atlanta, Paris and Munich, and Cortland Partners, an Atlanta-based, vertically integrated multifamily investment and management firm, announced their first joint venture. Simultaneously, the firms announced they have closed on two multi-family properties, one in Dallas and the other in Orlando.

In aggregate, the JV portfolio comprises more than 900 rental units in recently-constructed Class A garden-style multifamily communities. Both are in high-growth markets offering direct access to local employment centers.

David Pahl, Managing Director at GTIS Partners, noted: “This investment supports our continued fund strategy of acquiring high-quality income producing properties in the top growth markets around the US.” Amit Rind, Director at GTIS Partners, added: “Given that these are well-located assets that are benefitting from strong submarket growth dynamics and that we are partnering with Cortland Partners, who we consider one of the leading operators in the multi-family sector, we are very excited about this investment.”

Mike Altman, Chief Investments Officer at Cortland Partners, stated: “Demographics in the areas surrounding both developments are very strong, with median home prices exceeding $1 million and myriad employment opportunities. Amazon and KPMG are building new facilities in Lake Nona, adjacent to the Orlando community, Cortland Jubilee Park, and the area surrounding the Dallas community, Cortland Waters Edge, is home to five Fortune 500 global headquarters, including ExxonMobil and Kimberly-Clark.”

Cortland Waters Edge is located at the intersection of the Las Colinas, Irving and Farmer’s Branch submarkets in one of Dallas’ premier suburban locations, approximately 20 minutes northwest of Downtown Dallas. The Las Colinas/Irving employment hub is one of the best-established and dynamic job centers in the Dallas-Fort Worth MSA, home to five Fortune 500 global headquarters and more than 100,000 employees. The property provides direct access to major highways and transportation hubs, offering convenient commutes throughout the MSA, including the Dallas CBD and Legacy Business Park in Plano.

The property was built in two phases between 2014 and 2016, and features a total of 582 units in 22 three-tale buildings, with two clubhouses, a full suite of amenities and 977 parking spaces. The property contains a mix of one-, two- and three-bedroom units, and each unit has a balcony or private patio.

Cortland Jubilee Park is located in the Southeast/Airport submarket of Orlando, approximately 20 minutes southeast of Downtown Orlando. The property’s location provides direct access to the employment centers surrounding Orlando International Airport as well as convenient access to Lake Nona, a major medical and educational job growth center, Downtown Orlando, and the Orlando theme parks and resorts.

The immediate Lee Vista Center neighborhood is approximately 2,000 acres and features some two million square feet of office space, four million square feet of industrial space and a retail footprint of one million square feet.

The property was built in 2015 and features 330 units in 21 two- and three-tale buildings with a clubhouse, a full suite of amenities, and 711 parking spaces. The property has a mix of one-, two-, and three-bedroom units and features spacious, well-designed units, with high quality finishes and amenities.

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KATY, TX – Following a recent sale of Kenwood Club at the Park, Olympus Property successfully buys Vista at Grand Crossing in Katy, Texas, a Class A garden style community built in 2015. The asset will be renamed Olympus Grand Crossing effective immediately. 

“As the economy continues to grow in Houston, we project strong rent growth and demand for Class A multifamily to continue to expand. Olympus Grand Crossing offers a unique opportunity to capitalize on this trend and upgrade our portfolio in the process,” said Chase Bennett, Director of Acquisitions.

Olympus Property is a multifamily investment firm seeking to optimize the quality of units managed at the lowest price to make value for high-net-worth investors. Olympus provides opportunities to diversify across multiple geographic locations and directly own interest in unique real estate opportunities.

Offering a unique opportunity, Olympus Grand Crossing is situated near I-10 at the northwest quadrant of Grand Parkway and Kingsland Boulevard at the center of Katy’s most affluent neighborhoods. Access to the Houston Energy Corridor, Katy Independent School District’s top schools, an affluent demographic, and proximity to numerous lifestyle amenities make Olympus Grand Crossing a strategic long-term acquisition.

“Olympus Grand Crossing is a premium addition to our latest Fund 8, offering investors a diversified opportunity to invest directly alongside our firm,” said Braden Barr, Senior Investment Officer with Olympus Property. 

Olympus Grand Crossing is a premier rental community in the Katy submarket with unique amenities including direct access and rentable breezeway garages, wood-style flooring in all units, gourmet kitchen prep islands in select units, 42-inch custom home cabinetry with under mount lighting, and quartz countertops with stone backsplashes.

Founded in 1992, Olympus Property owns and manages the most desirable multifamily opportunities across the United States. Over its 26-year history, the firm has become a successful and recognized name in the multifamily industry with over 17,000 units owned and operated across ten states.

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