CARY, NC – The lease-up of The Franklin at Crossroads, a $45 million luxury mid-rise apartment community developed by Dewitt Carolinas in late 2015, defies market odds. The 199 upscale apartment homes, 5668 square foot clubhouse and resort-style pool are located on 17 acres in Cary, NC.

In November of 2015, Drucker + Falk started leasing and management of The Franklin. The new development received the first building in January 2016 and the final building in May 2016. Over the next 12 months, the Drucker + Falk team marketed the product’s superior unit layouts and modern interior finishes in combination with the DF customer service philosophy of integrity and performance to attract future residents. The result was that Drucker + Falk leased The Franklin to 95 percent occupancy in 12 months, beating the average market timeframe of 18-24 months, and with the highest asking rental rates in the submarket, at $1.46 per square foot. 

From second quarter 2016 to second quarter 2017, the Triangle’s multifamily market remained relatively steady. During the first quarter of 2017 (halfway through leasing The Franklin), concessions started to rise and Cary experienced a slight slide of asking rental rates (Colliers’ first quarter 2017 research report for Raleigh-Durham’s Multifamily Market).

According to Kellie Falk, Managing Partner at Drucker + Falk, “Despite the abundance of options and growing concessions for residents in Cary, the second largest multifamily submarket in the Raleigh-Durham corridor, we leased The Franklin at the highest rental rates in the submarket offering no concessions and are proud to hold the asset to that standard of quality and value today.” 

“We have been extremely pleased working with Drucker + Falk for the predevelopment and lease-up of The Franklin Apartments. Not only did they outpace the market to stabilization, but they increased income pushing the highest rents to the highest levels,” said Everett Daniels, VP of Construction with Dewitt Carolinas. “Drucker + Falk hires and supports the best people. In our opinion, the onsite team has been a huge part of The Franklin’s success, and we appreciate the partnership.”

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ORLANDO, FL – Florida’s housing market reported rising median prices and more new listings in January, according to the latest housing data released by Florida Realtors. 

“There’s an ongoing shortage of housing inventory in many markets across Florida,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “January’s statewide homes sales reflected the tight supply, and – when combined with rising median sales prices – it puts pressure on potential homebuyers. Working with local Realtors can help buyers and sellers know the factors influencing their local markets. 

“On the buyer front, new pending sales for existing single-family homes in January ticked up slightly, 0.1 percent, year-over-year; pending sales for townhouse-condo units increased 8.1 percent. On the sellers’ side, new listings for single-family homes rose 1.1 percent year-over-year, while new townhouse-condo listings increased 3.6 percent.”

Sales of single-family homes statewide totaled 16,564 last month, down 1.3 percent compared to January 2017. Meanwhile, the statewide median sales price for single-family existing homes was $240,000, up 9.1 percent from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties in January was $179,900, up 11.7 percent over the year-ago figure.

January marked 73 consecutive months that the statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year. The median is the midpoint; half the homes sold for more, half for less. 

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in December 2017 was $248,100, up 5.8 percent from the previous year; the national median existing condo price was $236,500. In California, the statewide median sales price for single-family existing homes in December was $549,560; in Massachusetts, it was $382,000; in Maryland, it was $275,674; and in New York, it was $260,000.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 7,634 last month, up 5.9 percent compared to January 2017. Closed sales data reflected fewer small sales and foreclosures last month: Small sales for condo-townhouse properties declined 32.5 percent and foreclosures fell 36.3 percent year-to-year; small sales for single-family homes dropped 46 percent and foreclosures fell 43 percent year-to-year. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Florida Realtors’ data shows sales of existing single-family homes in Florida were off to a slow start in the first month of 2018,” said Florida Realtors® Chief Economist Dr. Brad O’Connor. “But, it’s vital to note that there was significant variation in this figure across different markets throughout the state – in fact, single-family home sales were really up in 10 of the state’s 22 Metropolitan Statistical Areas (MSAs).

“Lately, condo and townhouse sales growth has been outpacing that of single-family homes, and the reason is that the picture for condos and townhouses has been much more balanced. The single-family home market, by contrast, continues to be held back by inadequate levels of new construction.”

January’s for-sale inventory remained tight with a 3.9-months’ supply for single-family homes and 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 4.03 percent in January 2018, down from the 4.15 percent averaged during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.

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HUNTINGTON BEACH, CA – TruAmerica Multifamily has bought Pacific Shores, a 264-unit apartment community in Huntington Beach, CA from affiliates of UDR, Inc. for $90.5 million.

Pacific Shores represents a right value add investment for TruAmerica, which targets well-located Class B multifamily assets that can benefit from strategic renovation while still keeping rents affordable for working families and individuals seeking quality rental housing.

Located at 7701 Warner Avenue, Pacific Shores features a mix of one- and two-bedroom floor plans with washer and dryer, private balcony or patio, and walk in closets.  TruAmerica will immediately start a multimillion-dollar capital improvement program building on the moderate renovation of unit interiors started by the seller. 

TruAmerica also will undertake a complete overhaul of 74 units that have been virtually untouched since the property was constructed in 1970.  Improvements will include new stone countertops with under mount sinks, kitchen backsplash, and cabinet doors.  Upgrades to the community amenities and exterior will include improvements to the pool and spa area, dog park and fitness center, as well as new signage, landscaping, lighting and outdoor barbeque area.

“The competition for this property was extremely fierce,” said Greg Campbell, TruAmerica Senior Managing Director of Acquisitions and Dispositions.   “Huntington Beach is a high barrier to entry market boasting fantastic multifamily fundamentals and the opportunity to buy an institutional quality asset with such tremendous upside is hard to find here.”

Given Huntington Beach’s brilliant schools and desirable costal location, the city boasts some of the highest home prices in Orange County, making a strong demand for quality rental housing, according to Mark Petersen who led the Eastdil Secured team, which marketed the property on behalf of the seller.  

TruAmerica’s acquisition was leveraged with seven-year agency financing through Freddie Mac’s select sponsor program.  The financing was arranged by Berkeley Point Capital Senior Managing Director Mitch Clarfield.

TruAmerica Multifamily is a vertically-integrated, value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica manages a $7.0 billion portfolio of approximately 33,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida.

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