ORLANDO, FL – Florida’s housing market reported increased sales, higher median prices, more pending sales and gains in inventory (active listings) in May compared to a year ago, according to the latest housing data released by Florida Realtors. Sales of single-family homes statewide totaled 30,742 last month, up 9.6% over May 2018.

“Low interest rates continue to fuel buyer demand in Florida’s housing market,” said 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “In May, new pending sales for existing single-family homes were up 5% year-over-year, while pending sales for existing condo-townhouse properties rose slightly (0.5%). Inventory levels have steadily improved, which offers more choices for homebuyers. Statewide, single-family inventory (active listings) last month rose 4% over May 2018, while condo-townhouse inventory increased 4.8%.

“For expert advice and peace of mind, buyers and sellers should consult a local Realtor to learn more about area market conditions.”

In May, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 89th consecutive month. The statewide median sales price for single-family existing homes was $266,000, up 4.3% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $195,000, up 3.7% over the year-ago figure. 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 April 2019 was $269,300, up 3.7% from the previous year; the national median existing condo price was $251,000. In California, the statewide median sales price for single-family existing homes in April was $602,920; in Massachusetts, it was $394,000; in Maryland, it was $295,000; and in New York, it was $271,000.

Looking at Florida’s condo-townhouse market in May, statewide closed sales totaled 12,217, up 1.6% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“May turned out to be our highest single-family home sales’ monthly total for any single month over at least the past 10 years,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “What’s more, this growth was widespread, with sales increasing in 21 of the state’s 22 metropolitan areas.

“This resurgence in single-family home sales is largely being driven by a single factor, which is that mortgage interest rates have been declining sharply since late last year. It’s worth noting, for instance, that all-cash single-family home sales were really only up 1.5% in May, whereas transactions involving financing were up over 12%.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.07% in May 2019, down from the 4.59% 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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AUSTIN, TX – Starwood Capital Group, a global private investment firm focused on real estate and energy investments, announced that a controlled affiliate has reached an agreement to buy and develop a 342-unit garden-style multifamily project in East Austin, Texas. Starwood expects to complete the Opportunity Zone development by Spring 2020. 

East Austin is one of Austin’s fastest growing submarkets and, with significant recent development driven by an influx of young professionals, has transformed into one of the region’s most desirable neighborhoods. Centrally located at 500 U.S. Highway 183 S., within close proximity to Austin’s central business district (CBD), entertainment district and international airport, the development is one of the few sites in East Austin that can accommodate garden-style apartments, which mimic single-family living and are in high demand from prospective tenants. The project’s amenities will include a club house, fitness center and pool with cabanas, and units will feature quartz countertops and stainless steel appliances. 

“We are thrilled to add this development to Starwood’s growing Opportunity Zone portfolio, and we are excited to expand our footprint in the attractive Austin market,” said Anthony Murphy at Starwood Capital Group. “Austin has experienced significant population growth and positive demographic trends, and we believe East Austin presents an attractive opportunity to meet the growing demand for high-quality housing with Class A amenities and finishes. With convenient access to Austin’s expanding job centers and entertainment district, this project will appeal to a wide pool of renters and will be a valuable addition to the Starwood portfolio.” 

“We believe the East Austin submarket is uniquely positioned to continue to grow, due to its proximity to the CBD, and will benefit from strong supply/demand fundamentals,” said Anthony Balestrieri, Senior Vice President and Head of Starwood Capital Group’s Opportunity Zone investment business. “The development at 500 U.S. Highway 183 S. is representative of the growth-focused investments Starwood Capital intends to continue targeting across our Opportunity Zone business. We look forward to continuing to grow our Opportunity Zone investment portfolio as we identify attractive investment opportunities to make value for our investors.”

Starwood Capital announced the formation of its Opportunity Zone business on Jan. 30, 2019, to ensure the success of its ongoing investments in Opportunity Zones, which were made by the 2017 Tax Cuts and Jobs Act to offer investors certain tax advantages for developing and operating assets in designated Opportunity Zones. Starwood Capital will focus its Opportunity Zone strategy on markets in regions where the firm has developed a strong real estate presence, including the West Coast, Southeast and large metropolitan markets such as New York City and Washington, D.C. Starwood Capital is well positioned in many of these markets and will continue to actively invest in, reposition and develop real estate assets in these communities.

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DESTIN, FL – Passco Companies, a privately held California-based commercial real estate company that specializes in acquisition, development, and property and asset management throughout the U.S., has bought Legacy on the Bay, a 300-unit luxury apartment community in Destin, Florida for $63.45 million.

This is Passco’s second multifamily asset acquisition in Destin in recent months, coming on the heels of the firm’s buy of Class AA Sea Glass Apartments in December, according to Colin Gillis, Vice President of Acquisitions for Passco. 

“We’ve enthusiastically targeted the Crestview-Fort Walton Beach-Destin MSA for its strong track record and future economic expansion potential, as it continues to post the lowest unemployment rate in the state of Florida,” clarifies Gillis, also noting that Temperamental’s Analytics places the area in the top 10th percentile nationally for projected job growth over the next five years. “Additionally, this market continues to have extremely high physical, political, and financial barriers to entry. There is only one multifamily asset in the pipeline in the entire MSA, despite significant in-migration and a population growth rate of more than twice the national average.”

Legacy on the Bay is located near U.S. Highway 98 and U.S. Highway 331, offering residents superior regional access, and has proximity to major employers including Fort Walton Beach Medical Center, Northwest Florida State College, and BAE Systems. There has been a large influx of jobs in the leisure and hospitality industry driven by tourism to the ‘Emerald Coast,’ known for its white sand beaches and emerald green waters, which attracts approximately 4.5 million visitors each year.

“Due to our ownership of best-in-market Sea Glass Apartments, located just a few miles down the road from Legacy, we already have our finger on the pulse of the local market and resident demands,” says Gillis. “Thus, we are better positioned to strategically approach the operation of this asset. Through adding this core-plus investment to our portfolio, we will hold two distinct and in-demand offerings in Destin.”

The firm plans to implement value-add upgrades at the property, including minor renovations to refresh and modernize interiors and the addition of in-unit washer/dryers. Gillis also highlights that the property features the largest floorplans in the submarket, including a rare four-bedroom option.

“Legacy’s spacious one, two, three, and four-bedroom floorplans are well-suited to its location, which offers tranquil living surrounded by lush greenery,” confirms Gillis. “Further, the larger floor plans are appealing to families who are drawn to the Okaloosa County School District, one of the top five districts in the state.”

Gillis notes that Legacy’s residents also delight in quick access to several shopping, dining, and entertainment options, including a Whole Foods Market, Bass Pro Shops, Belk, H&M, Chipotle, and 14-screen AMC Theatre at Destin Commons.

Legacy’s units include screened balconies and patios, stainless steel appliances, deep kitchen sinks with upgraded spray hoses, custom cabinetry, refrigerators, dishwashers, built-in shelving, walk-in closets, ceramic-tiled foyers, security alarms, air conditioning, and ceiling fans with brush nickel accents.

Competitive community amenities include a resort-inspired swimming pool, a 24-hour fitness center, a tennis and basketball court, a clubhouse, a business center, laundry facilities, garage and carport parking options, a community playground, and a dog park.

The firm bought Legacy at the Bay from Carter-Haston Real Estate Services, a Nashville-based private fund and property management firm. Brian Moulder and Dhaval Patel of Walker & Dunlop represented the seller in this transaction.

“Legacy on the Bay presents a unique, high-yield investment opportunity due to its location less than a mile from some of the most desirable beaches in the country, and two miles from the thriving Destin Commons, a premier lifestyle center offering residents shopping, dining, and entertainment,” says Moulder. “This will remain a strong overall investment as it matures. It was a pleasure to work with Passco’s dependable team once again on this transaction.”

Passco has been extremely active in the Florida multifamily market in recent years, amassing a current portfolio of 12 properties in the state.

The apartment community is located at 251 Vinings Way Boulevard in Destin, Florida.

Chris Black and Caleb Marten of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing on behalf of Passco Companies.

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