My expertise lye's in identifying multifamily projects in strategic infill locations that are close to the Las Vegas Strip, Downtown Las Vegas or suburban-infill. These properties are usually Class B/C in nature and are ideal for acquisition rehabs or tear downs potential for higher density development. The goals for my clients is to "Value-Add" and this article describes one of my transactions, a 10-story project named "Cambridge Towers" that is just 1/2 mile from the Las Vegas Strip.
Saturday, March 15, 2008
Value-Add Visionaries
In this month's edition of Commercial Investment Real Estate magazine published by the CCIM Institute. An article entitled Value-Add Visionaries , (Mar.Apr.08.pages 30-33), describes the approaches Brokers like myself take in the Value-Add Multi-Housing market.
My expertise lye's in identifying multifamily projects in strategic infill locations that are close to the Las Vegas Strip, Downtown Las Vegas or suburban-infill. These properties are usually Class B/C in nature and are ideal for acquisition rehabs or tear downs potential for higher density development. The goals for my clients is to "Value-Add" and this article describes one of my transactions, a 10-story project named "Cambridge Towers" that is just 1/2 mile from the Las Vegas Strip.
My expertise lye's in identifying multifamily projects in strategic infill locations that are close to the Las Vegas Strip, Downtown Las Vegas or suburban-infill. These properties are usually Class B/C in nature and are ideal for acquisition rehabs or tear downs potential for higher density development. The goals for my clients is to "Value-Add" and this article describes one of my transactions, a 10-story project named "Cambridge Towers" that is just 1/2 mile from the Las Vegas Strip.
Friday, March 14, 2008
Apartments no option for Homebuilders
This topic appeared on Lanser on Real Estate Blog
Great topic discussing the current state of affairs and the Homebuilders Index with NAHB. Here's my comments on their blog:
Gary Banner Says:
March 14, 2008 at 10:38am
One must realize their are important facts to consider regarding Multifamily Investment and Development. That is the ability to recognize the differences between “Short-term Technical Trends” and “Long-Term Fundamentals.” Today’s Builders and Developers have learned to time the market much better than their predecessors.
The Builders Index is reflecting current market conditions…Recessions leads to Job Losses…Job Losses leads to Rent Concessions and competition for renters (who can still pay on time) heats up! And its a Two-Sided Coin as Inflation is rising today and so are the costs of operating apartments…mcuh like corporations on Wall Street…a possible margin squeeze.
Today, heavy density areas of apartments in Las Veas, NV are now giving rent concessions in order to compete…this in essence is lowering rents…or “Effective Occupancy Levels” where the Rent Roll may say 95% occupancy but when a review of a trailing 12-months actually shows 85% due to turnover.
In Market Analysis, this is defined as “Short-Term Technical Trends” and is immediately reflected in underwriting for construction financing. Try getting construction financing at 80%LTV…very difficult…more like 75%-65% today.
Yes, the long-term “Fundamentals” reflects Echo-Boomers heading to household formations in excess of 75 Million. But, without Job formations these same prospects will delay moving out of their parents homes. And Yes, those who lose their homes to foreclosure will have to rent…but vacant houses are competing with Class-A apartments in price…especially here in Las Vegas.
Great topic discussing the current state of affairs and the Homebuilders Index with NAHB. Here's my comments on their blog:
"One of the reasons for the relative rental gloom is that incentives and concessions are beginning to hurt rents, NAHB said. The part of the index that tracks rents plummeted to 47.5 in the fourth quarter of 2007 from 61.3 in the last three months of 2006."
Gary Banner Says:
March 14, 2008 at 10:38am
One must realize their are important facts to consider regarding Multifamily Investment and Development. That is the ability to recognize the differences between “Short-term Technical Trends” and “Long-Term Fundamentals.” Today’s Builders and Developers have learned to time the market much better than their predecessors.
The Builders Index is reflecting current market conditions…Recessions leads to Job Losses…Job Losses leads to Rent Concessions and competition for renters (who can still pay on time) heats up! And its a Two-Sided Coin as Inflation is rising today and so are the costs of operating apartments…mcuh like corporations on Wall Street…a possible margin squeeze.
Today, heavy density areas of apartments in Las Veas, NV are now giving rent concessions in order to compete…this in essence is lowering rents…or “Effective Occupancy Levels” where the Rent Roll may say 95% occupancy but when a review of a trailing 12-months actually shows 85% due to turnover.
In Market Analysis, this is defined as “Short-Term Technical Trends” and is immediately reflected in underwriting for construction financing. Try getting construction financing at 80%LTV…very difficult…more like 75%-65% today.
Yes, the long-term “Fundamentals” reflects Echo-Boomers heading to household formations in excess of 75 Million. But, without Job formations these same prospects will delay moving out of their parents homes. And Yes, those who lose their homes to foreclosure will have to rent…but vacant houses are competing with Class-A apartments in price…especially here in Las Vegas.
Sir - A Gentleman Named "Margin Call" is on the Line!
Here's another top-ranked economist views of whats ahead for the U.S. and Global Economy. It supports my anecdotal views of last Fall.
Economy Hammered by Toxic Blend of Ailments
GSB-Las Vegas Apartment Investor's Blog
Las Vegas Housing Authority - Increases Rents on Seniors
Board says costs to increase yearly after July
Published today in the Las Vegas Review Journal was an article entitle Seniors' subsidized rents rising and how the Authority can no longer withhold the increases to our county's low-income seniors. Residents will now face yearly rent increases tied to the U.S. Consume Price Index.
The speaker, Carl Rowe, was booed by a number of senior citizen residents who attended the meeting.
Published today in the Las Vegas Review Journal was an article entitle Seniors' subsidized rents rising and how the Authority can no longer withhold the increases to our county's low-income seniors. Residents will now face yearly rent increases tied to the U.S. Consume Price Index.
"We've tried to keep rents low enough that it...wasn't a hardship for
anybody," "But you have to keep pace. We have bills like every other
business. It was as fair as we could possibly make it."
The speaker, Carl Rowe, was booed by a number of senior citizen residents who attended the meeting.
This will become commonplace not only in Nevada, but nationwide as well. As State and Local government's budget shortfalls take place due to the current Recession and the drop in their collection revenues. And it couldn't happen at a worst time as rising energy costs are starting to feeding into operational expenses for apartment owners. This is how "Stagflation," the worst possible outcome of this recession, could hurt fixed-income retirees-renters and their landlords.
Tuesday, March 4, 2008
Las Vegas Apartment Vacancies Rise Again!
Apartment vacancy in Las Vegas rose to 9 percent in January, up from 8.4 percent in December. The breakdown by class shows 7.76 percent for Class A, 9.38 percent for Class B and 9.67 percent for Class C, as reported by CB Richard Ellis.
Subscribe to:
Posts (Atom)
