DALLAS, TX – Increasing moderation in larger markets pushed national annual effective rent growth down to 3.9% in April 2016, the first time the rate has been below 4.0% since July 2014, according to Axiometrics, the leader in apartment and student housing market intelligence.

Even though the 4.0% streak finished, the apartment market showed signs of strength in April:

Occupancy increased to 95.1%.

The $1,277 average effective rent was $12 higher than March’s average.

“Many of the nation’s largest apartment markets precipitated the drop,” said Jay Denton, Axiometrics’ Senior Vice President of Analytics.

Denton mentioned that annual effective rent growth decreased in April:

By 97 to 136 basis points (bps) in the three San Francisco Bay Area metros in April.

By 102 bps in Los Angeles.

By 77 bps in Charlotte.

Also, Denver’s April rent growth was the second lowest of this cycle, and New York’s fell below 1.0% for the first time since February 2014.

Finally, Houston’s 89-bps rent-growth decline in April place that market in negative territory (-0.6%) for the first time since August 2010, as oil and gas industry jobs continued to decline, despite the recent rebound of oil prices past $40 per barrel.

“Our forecast has annual effective rent growth at about 3.8% for 2016,” Denton said. “Many metros are still coming down from exceedingly high rent growth figures in 2015, but the national market is still achieving rent growth above the long-term average. And, some large markets did experience increased effective rent growth in April, including Seattle, Dallas and Phoenix.”

The national rate was 16 bps lower than March’s 4.1% and 115 bps below the 5.1% of April 2015.

On a more positive note, the national occupancy rate increased for the third straight month, rising 14 bps to 95.1% from March’s 95.0%. The April rate represents the ninth month of the past 13 in which the national apartment market achieved occupancy of 95.0% or higher – the level at which Axiometrics considers an apartment market full.

April’s occupancy rate was essentially the same as that of April 2015.

Sacramento Again King of Rent Growth

Sacramento, with a rate of 11.4% was the only metro among Axiometrics’ top 50, based on number of units, to achieve double-digit annual effective rent growth in April. As such, it maintained its No. 1 position among the top 50 for the second straight month.

And why not? The metro added more than 22,000 jobs in the 12 months ending March 2016, increasing apartment demand, and only 665 new units were delivered in 2014 and 2015 combined. Just 255 have been identified to come to market this year, and 341 for 2017 have been identified.

California’s capital padded its lead over No. 2 Portland, as the Oregon city’s 8.7% rent growth marked the first time since March 2015 that its rate was below 10%.

Seattle and Riverside traded the Nos. 3 and 4 spots.

Fort Worth was the largest mover, rising from No. 13 to No. 7.

Tampa-St. Petersburg and Orlando were Nos. 8 and 9, jumping from Nos. 10 and 12, respectively.

Powered by WPeMatico

LOS ANGELES, CA – Turner Impact Capital, one of the nation’s largest and fastest-growing investment firms dedicated to social impact investing, is joining forces with Eva Longoria to buy, enrich and preserve critically needed workforce housing for families who earn less than 80% of the area median income and live in densely populated, ethnically diverse urban communities throughout the U.S.

The famed actress, businesswoman and philanthropist will become a partner in and an ambassador for the firm’s Turner Multifamily Impact Fund, which is well-positioned to buy and manage up to $1 billion in apartment communities in urban markets throughout the U.S. Since its launch in 2015, the fund has bought nearly 2,500 units in Maryland, Florida, Texas and Nevada, with many more acquisitions plotted. In these roles, Longoria will help raise awareness about the critical shortage of workforce housing and highlight the potential for innovative, market-driven solutions to tackle some of the most daunting challenges we face as a country.

The demand for quality, affordable workforce rental housing in the most populated areas of the country is expanding, due in part to the prohibitively high cost of land and construction. As a result, rents are reaching historic highs. Nearly half of all renters spend more than 30% of their income on rent and one quarter of all renters spend more than 50% of their income on rent. The growing disparity in workers’ income and their rent is untenable.

Dedicated to generating “profits with a purpose,” Turner Impact Capital is an acknowledged leader and innovator in the growing field of social impact investing – an investment approach that takes into account two goals: generating positive, risk-adjusted financial returns and making purposeful, measurable, and positive social or environmental impact through those investments. Founded in 2014, the firm is on course to surpass $2.5 billion in investment potential to address challenges facing urban neighborhoods while delivering superior risk-adjusted returns for its investors.

“While best known as an actress and producer, Eva Longoria’s most vital roles are those of a devoted philanthropist, entrepreneur and advocate for women and Latino community issues,” said Bobby Turner, Principal and CEO of Turner Impact Capital. “Her ambition and dedication to providing and fostering opportunities for minority communities, coupled with her unique insight and personal tale, fit seamlessly with our social impact strategies and make her a perfect partner for our mission.”

Longoria is a longstanding supporter of a variety of philanthropic causes, and made the Eva Longoria Foundation to help Latinas build better futures for themselves and their families through education and entrepreneurship. Longoria is also an accomplished businesswoman. Her production company, UnbeliEVAble Entertainment, has produced hit shows for several television networks, and she has served as spokesperson for a variety of top businesses, including L’Oréal Paris.

“Communities, the environment, worker productivity and household well-being all suffer when affordable housing is not in close proximity to jobs. In addition, the fact that 1 in 4 renter households spend over 50% of their income on rent is not sustainable,” Longoria said. “I am thrilled to partner with the Turner Impact Capital team to highlight the fantastic promise of urban investment in underserved communities, an issue close to my heart. Turner is pioneering a financially sustainable and scalable approach to building a stronger future and a more prosperous, inclusive country.”

The Turner Multifamily Impact Fund seeks to address the housing affordability crisis by preserving the workforce-housing status of the properties it buys and by implementing an innovative and novel business model that drives both shareholder and stakeholder value.

“Through the design and implementation of resident-serving programs centered around education, healthcare, and security, and the implementation of environmentally sustainable programs and practices,” Turner clarifies, “we can make a ‘pride in rentership’ that will in turn drive operating efficiencies and profitability for ownership without having to increase rents on a group of tenants who earn too much to qualify for subsidized housing, but not enough to afford higher-cost apartments or home ownership in the communities proximate to where they work.”

Investors in the Turner Multifamily Impact Fund managed by Turner Impact Capital include Citi Community Capital, the University of Michigan endowment, the Rockefeller Brothers Foundation, and other organizations seeking a social return, as well as a financial return, on their capital.

In addition to its multifamily strategy, Turner Impact Capital currently has two additional investment strategies to help address some of the country’s most pervasive social issues through real estate and infrastructure-related solutions. The firm’s targeted education strategy – the Turner-Agassi Charter School Facilities Fund, a partnership with tennis legend Andre Agassi – seeks to meet the growing demand for quality charter school facilities, improving the educational achievement and life outcomes for underserved students. The firm is also developing a health care strategy in order to address the significant demand for quality health facilities that deliver affordable and proximate patient-centered medical services to underserved communities.

“Turner Impact Capital’s investment strategies directly benefit a broad cross-section of urban residents, including Latinos, the youngest and one of the fastest-growing demographic groups in the United States,” Longoria said. “Despite their potential, Latinos disproportionately lack housing opportunities and face overwhelming economic challenges. The work of Turner Impact Capital supports the most effective interventions in breaking the cycle of poverty: promoting excellence in our schools and bringing new investment to our cities.”

Bobby Turner said he believes Longoria’s role as an investor and ambassador will enable the firm and its partners to touch even more lives in America’s most economically challenged cities while demonstrating the effectiveness of market-driven solutions.

Powered by WPeMatico

RALEIGH, NC – Officials of The Preiss Company, the nation’s third largest, privately-held, student housing owner-operator, announced that it had formed a joint venture with a private investment group to buy two student housing complexes in Raleigh, N.C., for an undisclosed amount. The transaction brings to seven the number of properties transacted by Preiss year-to-date. Both student housing units, the 440-bed College Inn and the 288-bed University Village at 2505, will continue to be operated by The Preiss Company.

“Preiss previously was a joint venture partner in these properties,” said Donna Preiss, founder and CEO of The Preiss Company. “Our former partner had achieved its objectives with these assets and wanted to harvest the return on their investment.

“We have a diverse number of strategic partners with different investment criteria. This allowed us to work with another of our investor partners to buy these assets which still have fantastic upside,” she said.

“Coming into 2016, Preiss set a goal of adding 10 properties,” she noted. “We have the largest pipeline in our history and could exceed that goal by as early as this summer. Based on our current rate of acquisitions, we will have an exceptional year, perhaps a record. There are a large number of properties on the market, ranging from those that would benefit from major renovation/repositioning to those that need more focused management. There also remains opportunities to develop new properties. Financing remains attractive, and we see continued demand growth. We continue to believe this is an brilliant time to be investing in student housing.”

Bought Properties

College Inn—Located at 2717 Western Blvd, the 440-bed facility is housed in a four-tale building on a three-plus-acre-site. Conveniently situated across from North Carolina State’s Main Campus and close to its Centennial Campus, the property features a large club house with a computer lab and study rooms, fitness center and game room. Fully furnished rooms include plank wood floors, washers and dryers.

Preiss will oversee a substantial rooms upgrade of College Inn with an expected start date during the fourth quarter of this year. Elements include new lighting, appliances, cabinets, countertops and furniture. The clubhouse and building exteriors, as well as landscaping, will be enhanced.

University Village at 2505—Located at 2505 Red Lodge Place, less than a mile from the Centennial Campus, the complex consists of four, four-tale buildings housed on approximately nine acres. The gated community has a club house with Internet café, fitness center and self-serve Starbucks coffee bar, as well as a resort-style swimming pool and sand volleyball court. Each fully furnished, four-bedroom suite has a common social area, private bedrooms and bathrooms and walk-in closets. The rooms offer state-of-the-art interior finishes, including stainless steel appliances, granite countertops and plank wood flooring. The property provides a free shuttle to the Main and Centennial Campuses, as well as resident events. University Village 2505 was developed by Preiss in 2012 specifically for student housing.

“Upon completion of the renovation to College Inn, these two complexes will be in brilliant physical condition. Both properties will benefit from the significant operational economies of scale we have in Raleigh,” she said. “We own and or operate 14 student housing complexes in the city and work closely with our student residents and North Carolina State University to provide quality housing and a fantastic college experience.”

Powered by WPeMatico