NEW YORK, NY – S&P Dow Jones Indices released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released for July 2017 shows that home prices continued their rise across the country over the last 12 months.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.9% annual gain in July, up from 5.8% the previous month. The 10-City Composite annual increase came in at 5.2%, up from 4.9% the previous month. The 20-City Composite posted a 5.8% year-over-year gain, up from 5.6% the previous month.

Seattle, Portland, and Las Vegas reported the highest year-over-year gains among the 20 cities. In July, Seattle led the way with a 13.5% year-over-year price increase, followed by Portland with a 7.6% increase, and Las Vegas with a 7.4% increase. Twelve cities reported greater price increases in the year ending July 2017 versus the year ending June 2017. 

The below charts compare year-over-year returns for Seattle and Portland with different ranges of housing prices (tiers). Upon tier level analysis from 2011 to present, both Seattle and Portland’s year-over-year returns show housing prices in the highest tier to be the most stable while housing prices in the low tier are the most volatile.

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.7% in July. The 10-City and 20-City Composites reported increases of 0.8% and 0.7% respectively in July. After seasonal adjustment, the National Index recorded a 0.5% month-over-month increase. The 10-City Composite posted a 0.4% month-over-month increase. The 20-City Composite posted a 0.3% month-over-month increase. All 20 cities reported increases in July before seasonal adjustment; after seasonal adjustment, 17 cities saw prices rise.

“Home prices over the past year rose at a 5.9% annual rate,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Consumers, through home buying and other spending, are the driving force in the current economic expansion. While the gains in home prices in recent months have been in the Pacific Northwest, the leadership continues to shift among regions and cities across the country. Dallas and Denver are also experiencing rapid price growth. Las Vegas, one of the toughest hit cities in the housing collapse, saw the third fastest increase in the year through July 2017.

“While home prices continue to rise, other housing indicators may be leveling off. Sales of both new and existing homes have slipped since last March. The Builders Sentiment Index published by the National Association of Home Builders also leveled off after March. Automobiles are the second largest consumer buy most people make after houses. Auto sales peaked last November and have been flat to slightly lower since. The housing market will face two contradicting challenges during the rest of 2017 and into 2018. First, rebuilding following hurricanes across Texas, Florida and other parts of the south will lead to further supply pressures. Second, the Fed’s recent go to shrink its balance sheet could push mortgage rates upward.”

More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.

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NEW YORK, NY – Investcorp, a leading provider and manager of alternative investment products, announced that its U.S.-based real estate arm has invested in six multifamily properties in Florida and Arizona, for a total buy price of approximately $350 million. The properties are located in key growth markets with strong fundamentals in the multifamily space.

Herb Myers, Managing Director Real Estate Investment at Investcorp, said: “Our commitment to U.S. residential real estate continues to serve our clients well. Underscoring our confidence in the U.S. real estate market and economy, over the past 18 months, we have invested in real estate transactions valued at more than $1.8 billion. As we continue to focus on the firm’s growth, real estate investing will play an vital role. The U.S. multifamily market remains attractive for new investment opportunities. This recently bought portfolio builds upon our strong track record of investing in multifamily properties in growth markets over the past several years and their ability to deliver consistent yields in a yield-constrained global environment.”

Highpoint Club and Montevista at Windermere are two apartment communities, which combined have 708 units. These properties are located within two different submarkets of the Orlando, Florida metropolitan area, a market that is expected to see population, employment, and GMP growth rates among the top five in the U.S. over the next five years. According to the U.S. Department of Labor, the Orlando metropolitan area was one of three metropolitan areas to experience the highest year-over-year percentage increase in employment in the country, at 3.2 percent as of August 2017. The Orlando multifamily market has benefited from a low vacancy rate and solid rental rate growth over the past several years, and these trends are expected to continue.

Aqua Deerwood is a 616-unit, garden-style, apartment complex located within the dense, high-income Southside/Bay Meadows submarket of Jacksonville, Florida. This location has seen strong growth due to its proximity to employment hubs as well as entertainment and higher education. The apartment complex is across the street from Deerwood Office Park, which houses a large concentration of companies, including Florida Blue, Merrill Lynch, United Healthcare, and Fidelity Bank. Also boosting the area’s population growth are underlying fundamentals such as no state income tax, a low cost of living, and favorable climate. Jacksonville is the fourth largest metropolitan area in the state and the tenth for population growth in the entire country

Arcadia Cove, Tuscany Palms and Midtown on Main are three, for-rent multifamily properties located in infill locations in the Phoenix metropolitan area. Combined, these properties have 1,486 units. Phoenix remains a high growth market, with growth fueled by an affordable cost of living, high-quality transportation infrastructure, and a business friendly environment. Over the past few years, the Phoenix-Mesa-Scottsdale metropolitan area has ranked third in the U.S. for employment growth and number one in population growth. In the past year, financial employment has expanded with the addition of 10,400 jobs, while the professional and business services sector added 9,400 jobs. The region is projected to experience some of the highest rental rate growth in the country over the next five years, particularly as population, employment and household growth outpace new units of supply.

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LOS ANGELES, CA – Canyon Partners Real Estate announced the acquisition of the leasehold interest in Coronado Palms, a 169-unit apartment community located in Anaheim, California. The transaction was executed through Canyon Multifamily Impact Fund III, a joint venture between Canyon and CIT Bank, N.A., with CIT’s Real Estate Finance business providing the approximately $25 million senior secured loan to fund the acquisition.

CMIF III is strategically positioned to target acquisition opportunities in Southern California and promotes the implementation of social programs through a variety of education, healthcare and community initiatives designed to benefit both residents and the communities in which they live and work. This is the third fund within Canyon’s workforce housing platform dedicated to advancing community development and embracing environmental responsibility.  CMIF III is also directly in line with CIT’s pledge to invest in the betterment of the communities in which it serves.  Coronado Palms represents CMIF III’s first acquisition since it was launched in late 2016. 

“The acquisition of Coronado Palms is a perfect example of CIT’s commitment, in conjunction with Canyon Partners, to bringing quality affordable housing to working families in Southern California,” said Mike Pedone, Managing Director of CIT.  “Its proximity to transit, employment, education and healthcare make it an ideal location, and our capital improvement plot will enhance the property through targeted building upgrades that help enrich the quality of life for its residents.”

FPI Management, a California-based management company, with strong experience in this market, has been engaged as the property manager.

Coronado Palms is situated in central Anaheim, just west of Interstate-5 and benefits from being located near strong employment drivers including Disneyland Resort, the Anaheim Convention Center & Resort District, and the Platinum Triangle, a district of Anaheim that is transforming from a low-density commercial and industrial zone into a vibrant urban mixed-use environment with high-density housing, commercial office towers and retail.

The 5.21-acre property consists of 11, three-tale buildings totaling 151,067 leasable square feet.  Since 2013, the property has undergone several upgrades, including improvements to the pool deck and new equipment for the fitness center. The property also includes community laundry facilities, a dog park, barbeque area and children’s playground.

CMIF III builds on the success of Canyon’s existing Multifamily Impact Funds which improve workforce multifamily properties by making long-term, material, positive impacts in targeted communities across the United States.  To date, the funds have bought more than $400 million of workforce housing, representing more than three million square feet and over 3,900 units.  

Canyon has a broad range of experience investing in California.  In the past five years, Canyon has deployed over $1 billion in 46 California investments through senior loans, mezzanine loans, preferred equity and common equity, with nearly $600 million of investments in Southern California alone.

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