Multifamily Investors, Spooked by Tougher Laws, Are Pushing Cap Rates Higher in Markets with Rent Control

Real Capital Analytics | September 17, 2019

Investors are starting to pay less for apartment properties in markets that have some kind of rent regulation laws on the books. In addition to New York, cap rates on apartment properties rose in cities in California, according to research firm Real Capital Analytics (RCA). The existing rent regulations in California didn’t change over the time period looked at by RCA researchers, though lawmakers there just approved broad new rent caps on Sept. 11th. The proposed law now awaits the signature of California’s governor, Gavin Newsom.

Spotlight

DDR considers portions of the information in this presentation to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods.

Spotlight

DDR considers portions of the information in this presentation to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods.

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REAL ESTATE INVESTMENT

Capital Square Acquires Multifamily Community Near Washington, D.C. for DST Offering

Capital Square | August 23, 2022

Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today the acquisition of Rivergate, a luxury 402-unit multifamily community in the Washington, D.C. suburb of Woodbridge, Virginia. The community was acquired on behalf of CS1031 Rivergate Apartments, DST. "I thought it could not get any better than the acquisition of Class A+ 2000 West Creek in 2019 for $103 million for Capital Square's 1031 exchange/DST program, but then we continued to acquire a large portfolio of comparable Class A+ apartment communities and, now, Rivergate Apartments in Woodbridge, Virginia, These Class A+ acquisitions perfectly fit the DST acquisition strategy of buying best in class multifamily assets for stable returns and capital appreciation. The acquisition of best-in-class assets demonstrates the maturation of the DST industry." -Louis Rogers, founder and chief executive officer of Capital Square Located at 13175 Marina Way, along the picturesque Occoquan River in the Potomac River basin, Rivergate is in a scenic area with excellent community amenities that include a resort-style swimming pool and sundeck, a rooftop terrace with cabanas, outdoor sofas and a bar, a courtyard with a firepit, gas grilling stations, a state-of-the-art fitness center, two resident clubrooms, a business center, a paw spa with a self-service wash and grooming suite, a volleyball court, kayak and bicycle storage, a multi-level parking garage, a package concierge, on-site management and maintenance and controlled access. The Greater Washington, D.C. and Northern Virginia economy has experienced consistent growth and diversification over the past several years, supported by the federal government and largely devoid of highly cyclical industries. The area is home to several international companies, including Amazon, Booz Allen Hamilton, Capital One Entities, Freddie Mac, GEICO, Hilton Worldwide Holdings, Inc., Marriott International and Northrop Grumman. Rivergate is ideally located in a thriving economic sector of Northern Virginia that continues to enjoy significant employment growth and will soon welcome Amazon, which will open its second global headquarters nearby in 2023, The Amazon facility is just 20 miles from Rivergate and is expected to employ 25,000 people. Amazon joins a host of other major international companies that call the region home,said Whitson Huffman, chief strategy and investment officer. Rivergate is just four miles from both the 183-bed Sentara Northern Virginia Medical Center and a new, $200 million Kaiser Permanente medical center. Together, these employers support approximately 1,500 workers.1 Potomac Mills, Virginia's largest enclosed outlet shopping and dining destination with more than 200 storefronts and restaurants, is just five miles from Rivergate. Stonebridge at Potomac Town Center, a 500,000-square-foot open-air lifestyle center, is just six miles from the property. Stonebridge features a Wegmans Food Market, full-service health club, Alamo Drafthouse Cinema, and a splash pad water park for children. Rivergate residents enjoy ready access to both Ronald Reagan Washington National Airport, situated 20 miles northeast of the property, and Dulles International Airport, located 30 miles to the northwest. CS1031 Rivergate Apartments, DST seeks to raise $46.5 million in equity from accredited investors and has a minimum investment requirement of $50,000. Since its founding in 2012, Capital Square has acquired 153 real estate assets for over 6,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation. About Capital Square Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $6.0 billion in transaction volume. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for six consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020.

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REAL ESTATE INVESTMENT

HINES BECOMES FIRST COMMERCIAL REAL ESTATE FIRM TO PARTNER GLOBALLY WITH FORBES TRAVEL GUIDE

Hines | September 23, 2022

Hines, the global real estate investment, development, and property manager, today announced a partnership with Forbes Travel Guide to define five-star hospitality standards at Hines buildings, making it the first commercial real estate firm to work with Forbes Travel Guide on a global scale. Hines and Forbes Travel Guide will co-develop custom service standards for the firm's 415 global office and multi-family properties, and emphasize how hospitality-inspired service can bring greater value to tenants and residents. As commercial real estate standards rapidly change, and people seek more collaborative, creative, and curated spaces, the partnership signifies Hines' commitment to creating a consistent customer experience that scales with the firm and brings the company's culture to life. "Real estate owners and managers have typically prioritized asset value over experience. We're seeing the value in both ROI and ROE, or return on experience, and see it as the most important metric of tomorrow, Enhanced customer experience driven by five-star standards not only increases asset value, but helps people feel more valued, connected, and inspired in our spaces. We selected Forbes Travel Guide because they are the trusted partner of the world's leading hospitality brands and share our passion for creating meaningful experiences for clients." -Whitney Burns, vice president of global client strategy at Hines In addition to the co-created service standards, the partnership between Hines and Forbes Travel Guide will include a substantive training program encompassing both in-person training customized to the Hines portfolio and scalable online training. The new service standards will be implemented in 2023. Creator of the original Five-Star rating system, Forbes Travel Guide is the only independent, global rating agency for the hospitality industry. With over 60 years in the hospitality sector, Forbes Travel Guide is the global authority on five-star service, providing world-class, professional development resources to many of the world's most beloved hospitality brands including the Mandarin Oriental Hotel Group, Marriott International, Hilton Worldwide Hotels & Resorts, as well as other organizations that make exceptional service a pillar of their business model. Now, more than ever before, people are emphasizing the experience and purpose behind where they choose to spend their time. Our partnership with Hines is a testament to the firm's commitment to innovation and placemaking and signifies a new industry standard in the operation of commercial real estate, said Hermann Elger, Forbes Travel Guide CEO. About Hines Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 285 cities in 28 countries. Hines oversees investment assets under management totaling approximately $90.3 billion¹. In addition, Hines provides third-party property-level services to 373 properties totaling 114.2 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,530 properties, totaling over 511 million square feet. The firm currently has more than 198 developments underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. About Forbes Travel Guide Forbes Travel Guide, the global authority on genuine Five-Star service, provides world-class professional services to the hospitality industry and other service-oriented businesses such as luxury retail, residential, healthcare and private clubs through bespoke training solutions, evaluation services and custom service standards. Started as Mobil Travel Guide in 1958, the company created the first Five-Star rating system in the United States. Today, in addition to providing professional services, FTG is the only independent, global rating system for luxury hotels, restaurants and spas. FTG's prestigious annual Star Awards can only be earned through the company's objective, in-person inspection process.

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BROKERAGE,MORTGAGE AND LENDING

Greater Lansing Association of REALTORS® partners with SkySlope to provide members access to breakthrough transaction tools

SkySlope and Greater Lansing Association of REALTORS | August 05, 2022

SkySlope, the leader in real estate transaction and brokerage software, is partnering with the Greater Lansing Association of REALTORS® (GLAR) to offer its premier transaction management solution SkySlope Suite — including SkySlope Forms and DigiSign — as a benefit to GLAR members. SkySlope's suite of products enables real estate professionals to centralize their workflow while remaining compliant. As the transaction management platform that serves over half of the top 20 largest brokerages in the nation, SkySlope is known for its 24/7 award-winning technical support and customized onboarding and training — both benefits that are now available to GLAR agents. "We are ecstatic to offer SkySlope to our members, SkySlope provides a valuable resource for REALTORS® to get the most out of their form libraries and elevate the transaction process across the state. Seeing as SkySlope is dedicated to building innovative, easy-to-adopt solutions, we know our members will thrive using SkySlope." -Aaron Fox, 2022 Greater Lansing Association of REALTORS® President SkySlope launched in 2011 with a mission to create technology that makes life better for real estate professionals. In October 2017, after several years of impressive growth, SkySlope became a part of the Fidelity National Financial family. This partnership reinforces SkySlope's commitment to its vision, providing them with greater resources to innovate. Since then, SkySlope has continued to create groundbreaking products for its growing community of over 450,000 real estate professionals. Located in Lansing, Michigan, the Greater Lansing Association of REALTORS® was founded with a mission to promote the American dream of homeownership through a free enterprise system. They provide support for their REALTORS®, allowing them the ability to take on industry challenges, protect homeowner and private property rights, and build communities. GLAR's partnership with SkySlope will empower its agents with top-tier tools designed to help them succeed. SkySlope Suite for GLAR members will include: SkySlope Suite - Flagship transaction management solution (includes DigiSign and Forms). DigiSign - Send documents for signature quickly and easily with intuitive (and free) features. Forms - Association and MLS forms that are always up-to-date and synced with data from the MLS. The way REALTORS® work today is changing as they take on more clients, adjust to market swings, and adopt more tech, At SkySlope, we are driven to provide tools that make an immediate impact in our customers' lives which is why we designed SkySlope Suite to be simple, flexible, and user-friendly. We are excited to work with GLAR to provide this benefit to all of its members,says Tyler Smith, CEO of SkySlope. About SkySlope Established in 2011, SkySlope is the customer experience platform managing real estate transactions from contract to close. Serving over 450,000 real estate professionals across the U.S. and Canada, SkySlope manages nearly 3 million transactions annually. SkySlope is on a mission to build solutions that reshape the real estate industry by creating the most powerful autonomous transaction platform. About Greater Lansing Association of REALTORS® Founded in Michigan in 1907, the purpose of the Greater Lansing Association of REALTORS® is to promote the American dream of homeownership through a free enterprise system by preserving the right to own, use, and sell real property. GLAR members work together to take on industry challenges, maintain the most accurate housing data, protect homeowners and private property rights, and help build communities.

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