U.S. housing starts rise 3.8% in October

First American | November 19, 2019

Housing starts rose 3.8% in October to a seasonally adjusted annual rate of 1.314 million and the pace for September was revised upward, according to the Department of Housing and Urban Development and the Department of Commerce. While household construction is on the rise, Mark Fleming, First American’s chief economist, said homebuilders are yet to construct enough homes to meet demand.

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Real estate securities provide the benefits of commercial real estate investing without the cost or illiquidity of owning property directly.

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Real estate securities provide the benefits of commercial real estate investing without the cost or illiquidity of owning property directly.

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REAL ESTATE TECHNOLOGY

Aventon Companies Breaks Ground on Newest Apartment Development in Orlando

Aventon Companies | May 21, 2022

Aventon Companies, a prominent, vertically integrated multifamily developer with active projects throughout the mid-Atlantic and Southeast, announced it has begun construction on its fourth apartment community within the Orlando metropolitan market. Aventon Opal will be a 308-unit, Class A, multifamily development, meeting Orlando's rapidly growing housing demand. Situated on nearly 12.4 acres and standing tall with four and five-story buildings, Aventon Opal will offer top-of-the-line one, two and three-bedroom units, and amenities designed for luxury living including a resort-style pool with private cabanas, summer kitchen with grills and outdoor pizza oven, and a social lounge housing a wet bar, TV, and poker table. Residents will also enjoy a micro market, around-the-clock fitness center, and clubroom with a remote working lounge encompassing five private offices, numerous booths and communal workspaces as well as a conference room. The pet-friendly community also boasts a pet spa and dog park. With home values in Orlando continuing to skyrocket and the market becoming one of the most desirable in the country given its year-round seasonable temperatures and proximity to the nation's entertainment capital, the need for high-quality housing is at an all-time high. We are excited to deliver another Aventon community which residents are able to proudly call home." Burk Hedrick, Vice President of Development for Aventon Companies The buildings comprising Aventon Opal were designed locally by Scott + Cormia Architecture & Interiors, based in Orlando, while the interiors were created by Beasley & Henley of Winter Park, Florida. Since 2019, Aventon Companies has assembled an impressive $1.5 billion portfolio of ground-up developments expected to bring nearly 6,000 Aventon-branded apartment homes to Florida, Georgia, the Carolinas, and the Mid-Atlantic. Aventon Opal will debut in 2023. To realize the development Aventon Companies has elected to partner with PPF Real Estate, a subsidiary of PPF Group, as a co-investment partner. This investment will be the second by PPF Real Estate in the Orlando area, having acquired the SouthPark Center for $315 Million in December 2021. "PPF Real Estate is enthusiastic about the creation of a joint venture with Aventon Companies, a development firm with a strong track record of success. We look forward to replicating this partnership in other investments in the Sun Belt region," said Aaron Smith, Managing Director for PPF Real Estate. About Aventon Companies Aventon Companies acquires, develops, and manages multifamily communities in Florida, Georgia, the Carolinas and the Mid-Atlantic with regional offices in West Palm Beach, FL, Orlando, FL, Raleigh, NC and Bethesda, MD. PPF Group operates in 25 countries in Europe, North America and Asia. It invests in multiple sectors, including financial services, telecommunications, media, biotechnology, real estate and engineering. The Group owns assets to the value of EUR 40.3 billion and employs 80,000 people worldwide (as of 30 June 2021).

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REAL ESTATE INVESTMENT

Mission Rock Residential Adds Baltimore Apartment Community to Growing Management Portfolio

Mission Rock Residential | May 06, 2022

Mission Rock Residential, LLC, a Denver-based multifamily property management company, is pleased to announce its newest management contract for The Tala at Washington Hill Apartments in Baltimore, Maryland. The apartments were formerly operated under the name of Jefferson Square at Washington Hill. Mission Rock was issued the management deal by Hamilton Zanze Real Estate Investments. The Tala at Washington Hill is another wonderful fit for the Mission Rock portfolio. The community is in a vibrant neighborhood in downtown Baltimore, and we are excited to provide the current and future residents with our award-winning property management service." Meredith Wright, CPM, CAPS, President of Mission Rock Residential The community offers 304 apartment homes and is located in Downtown Baltimore, near Johns Hopkins Hospital. The Tala at Washington Hill includes studio, one and two -bedroom apartment homes, each with a luxury feel thanks to high ceilings and state-of-the-art appliances. Residents will enjoy being conveniently located in the heart of Downtown, an onsite dog park, a resort-style swimming pool, and two courtyards with grilling stations and water features. The community is also home to retail shops, restaurants, and a bank, all located on the ground floor of the building. The Tala at Washington Hill is situated in the highly desired Washington Hill neighborhood and is just minutes from the Fells Point, Canton, and Harbor East neighborhoods, all known for their trendy events and retail offerings. Highway 40, which runs east to west, and I-95 which runs north to south, are also close by for easy commuter travel around the metro area. Baltimore is the largest city in Maryland with lots of cultural and historical attractions. It's best known for its historical sites, including the George Washington monument. The area has a strong economy made up of universities, healthcare facilities, retail companies, and government entities. Johns Hopkins University and Hospital, the Social Security Administration, and Centers for Medicaid and Medicare are just a few of the most notable employers in the area. About Mission Rock Residential Mission Rock Residential was established in 2012. The company now manages 167 multifamily properties and more than 31,000 residential units across the United States. With more than 700 full time team members, the company is headquartered in Denver, Colorado with regional offices in Phoenix and Atlanta. The company was also named one of the Best Places to Work by the National Apartment Association in 2021.

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AGENT

Granite Realty Partners to Complete Deconversion of Condominium Units

prnewswire | October 29, 2020

Granite Realty Partners, LLC, a Chicago-based real estate company, announced today that it has completed the fundraising for an investment vehicle to continue its purchases of "broken condominium units." The company has already been involved with seven condominium projects, in Illinois and Florida, totaling over 1,500 units. In four of those projects to date, Granite Realty Partners acquired enough units to complete a "condominium deconversion," thereby changing ownership from individually owned condominium units to a singly-owned apartment complex. Rob Palley, Principal and Co-Founder of Granite Realty Partners, said "We continue to search for and identify high-quality projects that for numerous reasons were not successful as condominium projects but which are viable as well-located and desirable apartment living." "Investment in "broken condominiums" allows an investor to participate in a multi-family platform at a cost basis well-below that of a widely-marketed apartment project," according to Palley. Granite Realty Partners currently has a pipeline of 4 projects totaling over 1,200 units and is actively seeking more investment opportunities. In 2017, Granite principals were involved in the purchase of individual condominium units at the Village at Town Center, in Davenport, Florida and completed a deconversion. The property had been converted to condominiums in 2006 and failed to sell out during the 2008 Recession. Upon gaining control, 48 of the units were fully renovated, achieving rent increases averaging over $250 per month, generating a return of over 20% on renovation costs. At that time, the property was sold and allowed the buyer the opportunity to achieve a substantial return by renovating the remaining 192 units. In 2018, Granite principals were part of the purchase of 89% of the units at Darlington Court, a 235-unit condominium property in Crystal Lake, Illinois. The investment group was able to buy the units at a favorable cost per unit by assuming low-leverage, high rate, CMBS debt. Within 6 months, all of the remaining units were purchased and select units were renovated and the common areas significantly improved. The property was sold 14 months after it was acquired and generated a significant return on investment. Also in 2018, Granite principals were part of the purchase of 58% of the units at Pine Hill Condominiums, a 264-unit condominium property in Wheeling, Illinois. The property was a failed condominium conversion of a two-building, 6-story project originally built in the 1970s. Within one year all of the remaining units were purchased and an upgrade of the common areas is close to complete and unit renovations are on-going, with an average rent increase of over $200 per month for renovated units. Palley stated that "we look for projects that are well-located and have proven lease up history but that due to market timing or conditions were not able to succeed as condominiums but are attractive and viable apartment projects when the condominium ownership structure is removed."

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