REAL ESTATE TECHNOLOGY
Redfin | July 06, 2022
In 2020 and 2021, purchases of second homes with high flood risk rose 45% from the prior two-year period (2018-2019), according to a new analysis of ClimateCheck data from Redfin (redfin.com), the technology-powered real estate brokerage. There were also significant increases in purchases of second homes with high storm risk (40%) and high heat risk (39%).
Demand for second homes surged during the pandemic as low mortgage rates, remote work and the desire to escape the city drove up demand for vacation properties. Overall, purchases of second homes were up 37% higher in 2020 and 2021 compared with 2018 and 2019. Demand has since fallen back below pre-pandemic levels as life has returned somewhat to normal, but many Americans now own at-risk second homes, which has implications for the future.
“The threat of climate change isn’t the top concern for a lot of homebuyers, which means they often prioritize factors like warm weather and proximity to the beach over avoiding natural-disaster risk. Second-home owners, in particular, have another place to live if disaster strikes—another reason climate danger may not feel like a pressing issue, But house hunters should be aware that purchasing in a disaster-prone area not only puts them and their home at risk, but their finances as well. Home values in climate-endangered places may fall in the coming years as consumers learn more about the risks to properties in these areas.”
Redfin Senior Economist Sheharyar Bokhari
A recent Redfin analysis found that more people have been moving into than out of the U.S. counties with the largest share of homes at high risk from natural disasters. That’s partly because some buyers just aren’t aware of the risks. Redfin.com now publishes climate-risk data for nearly every U.S. home, with the exception of rental listings, to help house hunters make more informed decisions.
“House hunters from out of town ask about climate change because they’re very concerned about flooding, but most of them don’t change their minds,” said Miami Redfin agent Cristina Llanos. “They hear horror stories of hurricanes, but generally still move forward. People want to talk about it but it typically doesn’t make or break their decision.”
Heat and Storm Are Most Common Risks Second-Home Buyers Face
Overall, heat is the most common risk facing second-home buyers—nearly all (94%) of second homes purchased in the past two years face high heat risk. Next comes high storm risk, which plagues more than three-quarters (78%) of second homes bought in the past two years, followed by high flood risk (26%), high fire risk (23%) and high drought risk (21%).
Many popular second-home destinations, like Florida and Arizona, face significant heat and/or storm risk. The most popular destinations for homebuyers looking to relocate are Miami, Tampa and Phoenix, which attracted scores of affluent out-of-towners in search of vacation homes during the pandemic.
Redfin is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
REAL ESTATE INVESTMENT
JLL Income Property Trust, Inc. and LaSalle Investment Management | August 10, 2022
JLL Income Property Trust, an institutionally managed daily NAV REIT with approximately $6.8 billion in portfolio assets announced today the acquisition of Silverado Square, a 48,000-square-foot retail center in Las Vegas, Nevada. The retail property is anchored by Sprouts Farmers Market, shadow anchored by CVS, and includes a parcel that is fully entitled for nearly 5,000 square feet of rentable retail space. Silverado Square was acquired for $24.4 million.
"Silverado Square is a well-located property that fits within our thesis of acquiring high-quality, grocery-anchored retail centers, Its location next to two major thoroughfares and near a large master-planned community, along with its strong tenant roster and long-term lease commitments, should bode well for the center's continued success in generating stable income. As we saw throughout the pandemic, grocery-anchored retail is resilient, and can continue to provide returns for our stockholders throughout volatile market conditions."
-JLL Income Property Trust President and CEO Allan Swaringen
Constructed in 2018, Silverado Square benefits from a highly visible location on two thoroughfares in the Silverado Ranch master-planned community, which is home to more than 55,000 people. The property ranks in the top quartile of LaSalle Research & Strategy's proprietary Supermarket Trading Area Rating System (STARS), which ranks more than 40,000 grocery-anchored retail centers in the US. The high score owes to Silverado Square's proximity to population density and median income that are both above the national average. The property has a weighted average lease term of more than eight years, including a 15-year lease signed by Sprouts in 2018 that features 10 percent rent escalations every five years. Overall, the property is 98 percent leased.
The fully entitled parcel, directly to the east of the existing structures, provides JLL Income Property Trust with the opportunity to build nearly 5,000 square feet of additional retail space and drive further net operating income. The new building will be leased by three tenants and is scheduled for completion later this year.
JLL Income Property Trust's grocery-anchored retail allocation is 23 properties in 13 key markets valued at nearly $850 million and representing approximately 13 percent of its overall portfolio.
JLL Income Property Trust is an institutionally managed, daily NAV REIT that brings to investors a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world's leading real estate services firms.
About JLL Income Property Trust, Inc.
Jones Lang LaSalle Income Property Trust, Inc. is a daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing residential, industrial, grocery-anchored retail, healthcare and office properties located in the United States. JLL Income Property Trust expects to further diversify its real estate portfolio over time, including on a global basis. For more information, visit www.jllipt.com.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, LaSalle manages approximately $82 billion of assets in private and public real estate property and debt investments as of Q1 2022. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments.
REAL ESTATE INVESTMENT
JRW Realty | May 27, 2022
JRW Realty, a nationwide commercial real estate brokerage dedicated to finding and delivering net-leased properties, has facilitated the acquisition of six Walmart Neighborhood Markets in Louisiana on behalf of its client for a total price of $84 million.
The six stores account for approximately 43,000 square feet each and are located in the southern or coastal Louisiana towns of Meraux, Houma, Prairieville, New Iberia, Opelousas, and Thibodaux. All purchases have single-tenant net leases in place, with individual prices ranging from $11.8 million to just under $16.5 million. The total square footage of the six stores is 257,427.
JRW Realty's Jennifer Rodriguez Ventura facilitated the deal on behalf of an institutional buyer with a demand for specific net-leased properties. JLL's Alex Sharrin represented the seller in the transaction.
Jennifer worked diligently to bring this transaction to fruition. We always seek the right kinds of properties for our clients' private real estate investment firms. As they have solid backing and resources, they are actively engaging in deals of this size and higher."
Melinda Marston,JRW Realty's president of single-tenant net lease
Walmart Neighborhood Markets were designed in 1998 as a smaller-footprint option for communities in need of a pharmacy, affordable groceries, and merchandise. Each location employs up to 95 associates.
"Our clients have specific criteria for purchasing real estate," Marston said. "One such criteria is net-leased properties tenanted by creditworthy clients. These Walmart Neighborhood Markets fit that description as well as anything could, and we are delighted to have been able to bring this deal to our clients and to help them complete a successful closing."
About JRW Realty
JRW Realty is a commercial real estate brokerage firm that has closed on more than 900 properties valued at more than $3.6 billion on behalf of its clients. JRW Realty's team places special focus on due diligence, reviewing over 100 properties each week and only choosing to source for clients the best 3-4% according to their rigorous acquisition criteria.