ORLANDO, FL – Florida’s housing market reported slightly more new listings and higher median prices during the first quarter of 2018, according to the latest housing data released by Florida Realtors. A shortfall of for-sale inventory continued to impact sales even as the number of owners listing their properties for sale inched up over the quarter; closed sales of single-family homes statewide totaled 60,204 in 1Q 2018, down slightly, 0.9 percent, from the 1Q 2017 figure.

“During the first three months of 2018, median sales prices for both existing single-family homes and for condo-townhouse properties rose in Florida, continuing a trend that we’ve been seeing for quite a while,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “Despite tight inventory levels, new listings for single-family homes over the three-month-period rose 1.1 percent year-over-year, while new condo-townhouse listings rose 2.9 percent.

“The state’s population continues to increase, our jobs outlook is strong and the economy is growing. In fact, Florida continues to be ranked as the second-best state in the U.S. to do business, according to the 2018 survey of CEOs from Chief Executive magazine.”

The statewide median sales price for single-family existing homes in 1Q 2018 was $248,000, up 9.7 percent from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $180,000, up 7.8 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 27,088 during 1Q 2018, up 2.8 percent compared to 1Q 2017. The closed sales data reflected fewer small sales – and rising traditional sales – over the three-month period: Small sales for condo-townhouse properties declined 37.8 percent while small sales for single-family homes dropped 46.3 percent. Meanwhile, traditional sales for condo-townhouse units rose 5.6 percent and traditional sales for single-family homes increased 3.8 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written.

“At the more affordable end of the pricing spectrum, Florida’s strong employment growth and the long-awaited emergence of the millennial buyer have increasingly driven demand – but there also remains a sizeable contingent of investors in this segment who are looking to capitalize on high rents,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “It’s the lack of both existing and new inventory in these price ranges that is really limiting this segment’s potential and keeping sales growth down. In many cities around the state, we’re starting to see pretty strong evidence that buyers who would have preferred single-family homes are giving up and opting to buy condos or townhouses instead.

“Buyers in the market for mid- to upper-tier single-family homes are having a much simpler time of it, as they’re facing less competition, and there’s a relative abundance of both new construction and resale inventory available.”

In 1Q 2018, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 45 days for single-family homes and 48 days for condo-townhouse properties.

Inventory was at a 3.8-months’ supply in the first quarter for single-family homes and at a 5.9-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.27 percent for 1Q 2017, up from the 4.17 percent average recorded during the same quarter a year earlier.

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ADDIS, LA – Abode Properties, a subsidiary of Dallas-based real estate investment company Transcontinental Realty Investors, announced the acquisition of Sugar Mill II apartments. The class A asset will be added to the organization’s Southern Properties Capital portfolio.

Sugar Mill II in Addis, Louisiana is minutes from downtown Baton Rouge and provides simple access to I-10. The upscale, gated, residential community includes 80 one and two bedroom units each containing full kitchen and full size washer and dryer. The facilities include a club room with full kitchen and covered patio, business center, fitness center, and a resort style pool. The property started lease-up in May 2016 and was stabilized by September that same year.

“Sugar Mill II is an outstanding addition to our Southern Properties Capital portfolio,” commented Bradley Kyles, Abode’s EVP of Multi-Family Residential Operations. “With a strong school system, growing population, and close proximity to the state capital, Addis, Louisiana exemplifies the growing towns in which we aim to buy and develop new assets.”

Southern Properties Capital operates primarily in Texas and specializes in Class A multifamily assets in emerging markets throughout the Southern United States, corresponding with both sustainable and viable economic growth activity. The issuing entity is backed by over 3,000 multi-family units (out of a total of approximately 8,000 owned and operated by TCI), as well as over 1.5 million square feet of office space in Texas. The company has already used funds to buy additional multi-family assets within its strategic footprint, and expects significant expansion by continuing to utilize the Israeli bond platform.

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NEW YORK, NY – A joint-venture between Trevian Capital and Crown Properties announced its $34,650,000 acquisition of three garden-style multifamily properties totaling 407 units in Elgin, Illinois, Madison, Wisconsin, and Chesterton, Indiana. 

Trevian and Crown bought the three-asset portfolio from a longtime family owner/operator who undermanaged the assets.  The 1970’s and 80’s vintage portfolio was 94% occupied at the time of closing.  The business plot is to cure deferred maintenance, implement institutional management, modernize units and finishes, add amenities, rebrand the properties, and bring rents to market.  

The repositioned assets will provide quality workforce housing to the broad market segment of residents that are priced out of single family ownership and Class A product. Trevian and Crown plot to spend in excess of $3,500,000 in upgrades throughout the portfolio in the near term.

Trevian and Crown were able to navigate a complex deal, whereby all three properties were in foreclosure and being managed by a receiver, and a fourth property, also in default, needed to be sold simultaneously. 

“We are excited for the opportunity to breathe new life back into these assets and have them become cornerstones of their communities,” said Michael Hoffenberg, Founder and Managing Principal of Trevian Capital.  “Trevian is more commonly known for its bridge lending platform, where we are very active in the transitional and value-add multifamily sector helping borrowers do on this exact strategy.  Our role in the world of special situations puts us in a unique seat to make strategic multifamily acquisitions ourselves,” added Hoffenberg.  “Similar to how we operate in our lending platform, our ability to provide the seller with speed and certainty of execution, won the deal for us.”

“This acquisition exemplifies the need to preserve our housing stock that caters to the working-class.  Once revitalized, these properties will be attractive to individuals and families who want to live in clean and safe communities that they can be proud of,” said Matthew Lefkowitz, Principal of Crown Properties. “We are excited to partner with Trevian Capital and bring our collective vision to fruition.”

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