SEATTLE, WA – Renewing a lease instead of moving to a new apartment can mean major savings for renters. Those who went in the past year paid an average of $3,946 more in 2015 on rent than renters who stayed in the same unit for the past five or more years, according to a new Zillow analysis of 2015 rent data from the U.S. Census American Community Survey (the most recent data available).

While rents increased across the country, market rate rents – those that are advertised for new renters – increased more than rents did for tenants who renewed leases. The annual market rate increase in rent from 2014 to 2015 was 5.6 percent, compared to a 3.6 percent increase for renewed leases.

The U.S. faces a rental affordability crisis, as rents have skyrocketed in recent years, while incomes have remained largely flat. Zillow’s research shows that when rents are rising rapidly, renters can save a excellent chunk of money by renewing a lease, rather than moving and starting a new one. Renters can use these savings for a down payment, which most renters say is the greatest barrier to buying a home.

There are 43 million renter households across the country, about 4 million more than there were five years ago. The majority of recent household formation happened on the renter side instead of the homeowner side, in part due to millennials reaching the age to go out but not having enough savings to buy a home. Young adults are also renting longer than ever before buying.

“Renters have a choice to make nearly every year – do they stay in the same place, or should they look for a new unit?” said Zillow Chief Economist Dr. Svenja Gudell. “With the country in the middle of an affordability crisis, it’s vital for renters to know how much they can save if they renew their lease instead of finding a new rental. Nationally, rental rates have slowed and the savings from renewing are not as significant for renters today. But, in some of the hottest rental markets, where rents are still rising aggressively, continually renewing a lease can mean saving thousands of dollars.”

In Boston in particular, it paid off for renters to stay in the same place instead of moving every year. Boston renters saved up to 86 percent by staying in the same rental for five or more years, which translated to $8,979 in annual rent payments. They also faced the largest difference between annual market rate rent increases – 10.5 percent – and rent increases for renewing – 4.3 percent.

Renters in Las Vegas had the smallest financial incentive to stay in the same unit. Renters who have lived in the same unit for five or more years paid on average $842 less per year than renters who went the year before.

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DALLAS, TX – BRT Apartments announced it bought, through a joint venture in which it has a 50% equity interest, Mercer Crossing, a 509 unit Class A multi-family property centrally located in the Farmers Branch area of Dallas-Fort Worth, Texas for $85.7 million, including $55.2 million of mortgage debt obtained in connection with the acquisition. The debt carries an interest rate of 4.22%, is interest only for five years and matures in 2028.

BRT bought, through a joint venture in which it has a 58% equity interest, a 44 acre land parcel in the Bells Bluff area of Nashville, Tennessee, for $5.3 million. The venture contemplates developing a 402 unit Class A multi-family property at this site for an estimated $73 million, which will be funded in part by an estimated $47.4 million of construction financing.

The construction financing, which will be advanced as construction progresses, matures in 2022 and bears interest at the rate of one month LIBOR plus 285 basis points. BRT has agreed to contribute up to $15 million of equity to this venture, of which $4.8 million has been contributed to date.

Jeffrey A. Gould, President and Chief Executive Officer commented, “We continue to identify high quality sun-belt multi-family properties to buy and are pleased to add Mercer Crossing in Dallas, Texas and a new development opportunity in Nashville, Tennessee to the portfolio. Mercer Crossing, which was built in two phases from 2014 to 2016 and the Bells Bluff development will reduce the average age of our portfolio and improve its quality. Both are off market transactions, which we believe came to BRT as a result of the strong reputation we have in the market as a creative and well-capitalized partner.”

Mr. Gould continued, “These two acquisitions bring our total 2017 capital deployed to $71.7 million. We are confident in our abilities to continue to find accretive acquisitions and enhancing the cash flow stream of our growing portfolio.”

BRT Apartments is a REIT trading on the New York Stock Exchange (NYSE: BRT) that is focused on investing directly and through joint ventures acquiring existing multifamily properties, and to a limited extent ground up development of multifamily apartments.

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SEATTLE, WA – Madrona Ridge Residential, an affiliate of Seattle-based Security Properties, is being fully integrated into Security Properties and rebranded as Security Properties Residential.  As part of this integration, Security Properties is also announcing that Mike Voorhees, formerly of Holland Residential and Holland Partner Group, has recently joined Security Properties Residential as President.

According to David Dufenhorst, CEO of Security Properties, “We are very fortunate to have found Mike Voorhees, who is clearly a cultural match for us, especially with his deep skills and experience.  We look forward to Mike’s leadership in growing our property management platform.”

As Security Properties Residential, the firm’s existing 426 employees will continue to provide exceptional residential management services for Security Properties residents, its high-net worth investors, and its institutional real estate partners and lenders.  Madrona Ridge was made in 2010, after a 15 year non-compete related to the sale by Security Properties of its prior management company expired.  Its purpose is to increase the value of its real estate holdings by more closely managing its assets.

Mike Voorhees, Managing Director and the new President of Security Properties Residential, stated: “I look forward to building on the talent, experience and systems that have allowed Security Properties Residential to reach the point where it is today and to help expand the platform to serve the needs of our residents, partners and investors.”

Operating throughout the Western U.S., Security Properties Residential is committed to delivering exceptional service to its apartment communities and their residents.  Services include property, construction and compliance management services that make positive living environments for residents and build value for investment clients.

Under this new organization, Security Properties Residential will have a unified brand and organization, and will be further integrated with the Security Properties platform to enhance coordination and risk management.

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