CHARLESTON, SC – Greystar Real Estate Partners, a global leader in the investment, development, and management of rental housing, and Credicorp Capital, the leading investment bank in the Andean Region, announced the closing of “Fondo de Inversión Credicorp Capital Renta Residencial I Chile”. The discretionary commingled fund is focused on the development of high-quality multifamily assets in Chile.

Greystar operates over 400,000 rental units in 160 markets globally with an ownership interest in assets worth over $14.0 billion USD. Greystar will look to leverage its rental housing expertise to identify underserved markets in Santiago to generate attractive risk-adjusted returns to its investors and an unmatched living experience for its residents.

“We are excited to announce the closing of our first investment fund in Chile,” said Bob Faith, Chairman and CEO of Greystar. “This is another step in our successful international growth strategy and vision to professionalize the rental housing business and provide opportunities for institutional capital globally. Greystar’s vision and our world class Latin America team will combine with Credicorp Capital’s deep regional relationships to generate attractive investment returns.”

“The fund will focus on the development of highly attractive opportunities in the most attractive submarkets in Santiago, where we find strong fundamentals for multifamily assets,” said Eduardo Orozco, Managing Director of Investments for Greystar’s Latin America platform. “Our goal is to develop the premier portfolio of buildings that will redefine the apartment for rent experience in Chile. Having a presence in the Chilean market is key to our continued growth throughout Latin America. We are excited to work with Chilean investors on this fund and develop the multifamily industry in the region.”

“The joint venture with Greystar in Chile is just the start of what we believe is a significant opportunity in the multifamily space across Latin America, and we look forward to growing this partnership throughout the entire Andean Region,” said Cristián Letelier, Managing Director of Alternative Investments of Credicorp Capital.

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WASHINGTON, DC – Apartment markets softened across all four indexes in the October 2016 National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The Market Tightness (28), Sales Volume (42), Equity Financing (33) and Debt Financing (38) Indexes all landed below the breakeven level of 50 – showing weaker conditions from the previous quarter.

“The growing supply of new apartments, primarily in the Class A space, appears to have finally reached a level to slow the historically high rent growth. Additionally, debt and equity markets are more discerning in terms of what deals they are ready to take on, including the continued slowing of available construction loans,” said Mark Obrinsky, NMHC’s Senior Vice President of Research and Chief Economist. “Despite the softening due to the new development focus on Class A apartments, the overall fundamentals for apartments remain stable, indicated by the strong demand for Class B and C properties.”

The Market Tightness Index fell to 28, the lowest since July 2009 and the fourth quarter in a row showing declining conditions. Nearly half of respondents (49 percent) reported looser conditions than three months ago. Likewise, only six percent noted tighter conditions. The remaining 45 percent reported no change at all.

The Sales Volume Index decreased from 50 to 42, signifying lower overall sales volume. Sixteen percent of respondents reported higher sales than three months prior, compared to 33 percent that reported lower sales volumes.

The Equity Financing Index dropped 11 points to 33. This marks the fourth quarter in a row below 50 and the lowest in more than seven years. Forty-two percent of respondents believed that financing was less available, compared to eight percent who regarded financing as more available.

The Debt Financing Index decreased from 62 to 38, indicating a sharp reversal from last quarter. One-third of respondents reported worse conditions for borrowing compared to the three months prior, while only nine percent reported better conditions. Over half (52 percent) reported no change whatsoever in the debt market.

The survey also questioned about rent growth among different class buildings. Excluding the ten percent that marked “don’t know/ not applicable”, nearly nine of ten (84 percent) respondents reported rent growth for Class B and C apartments as much stronger (33 percent) or somewhat stronger (51 percent) rent growth compared to Class A units. Just five percent reported somewhat weaker rent growth among Class B and C apartments compared to Class A, and two percent thought that B and C apartments exhibited much weaker rent growth. The remaining nine percent reported that rent growth levels were about the same throughout all classes of apartments.

The October 2016 Quarterly Survey of Apartment Market Conditions was conducted October 10-October 17, 2016; 147 CEOs and other senior executives of apartment-related firms nationwide responded. View the full data online at nmhc.org

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ATLANTA, GA – Bluerock Residential Growth REIT announced that it has bought the 480-unit multifamily Nevadan Apartments in Atlanta, Georgia. The Company bought the property through a joint venture for a total buy price of approximately $68.25 million, or approximately $142,188 per residential unit.

The acquisition is projected to yield a stabilized pro forma cap rate of approximately 6.5% on execution of the Company’s Value-Add upgrade strategy, which compares favorably to estimated market cap rates of 4.75% – 5.25% for comparable assets.

BRG invested 90% of the venture’s equity requirement, or approximately $23 million, with an affiliate of the Carroll Organization investing the balance for a 10% stake in the venture.  The transaction, which was sourced off market, was further capitalized with a senior loan in the amount of approximately $48 million.

The Nevadan, which was built in 1990, features one-, two- and three-bedroom units averaging nearly 1,100 square feet. It is located within Perimeter Center, one of Atlanta’s fastest growing employment submarkets, and features a large clubhouse as well as a resort style swimming pool, poolside grill/lounge, 24-hour fitness center, tennis courts and underground parking.

The property benefits from close proximity to I-285 and GA-400, which provide simple access to employment nodes throughout the city. Three major hospitals, known collectively as ”Pill Hill,” are five to seven minutes’ driving distance from the property and provide approximately 15,000 jobs. An added 9,000 jobs are being made within 3 miles of the property as State Farm and Mercedes-Benz establish new headquarters in Perimeter Center.

“We see significant upside potential for this property and believe it to be a strong addition to the portfolio. The property has excellent, intrinsic value, while the Perimeter Center submarket and the larger Atlanta MSA show much promise for the coming years. Our ability to source this property at a favorable cost basis makes it possible for us to bring a strong product to market at competitive rents,” said Ramin Kamfar, Chairman and CEO of BRG.

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