Miami luxury market is the fastest-growing in the nation

Knight Frank | October 04, 2019

While this year hasn’t been so great for the luxury housing market, one city has seen a positive trend. According to Knight Frank Wealth Report, Miami placed No. 1 for the fastest-growing luxury real estate market in the U.S. It also ranked No. 5 among the fastest-growing luxury real estate markets in the world, following Madrid, Berlin, Paris, and Cape Town.  High-end home sales bounced back in Q2, Redfin said in September. Prices went up 1%, a significant jump from Q1’s decline of 1.7%.

Spotlight

Making real estate a part of your portfolios offers a host of benefits, including a stable income stream and strong returns, capital preservation and diversification through non-correlation to the broader markets. But not all real estate is created equal, and an active approach to investing in this dynamic asset class can help increase returns and reduce portfolio volatility. This publication will tell you more about the benefits of real estate investing in today’s market, as well as the different investment options available when accessing this asset class.


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REAL ESTATE INVESTMENT

MWest Holdings Acquires Newly Constructed Class-A Long Beach Apartment Community

MWest Holdings | February 28, 2022

MWest Holdings, a Los Angeles-based real estate company with over 2 million square feet of residential and commercial property across the U.S., announced today that it has acquired 442 Residences, a five-story, 94-unit multifamily asset in Downtown Long Beach. We are thrilled to expand our California portfolio in the Long Beach submarket. With a prominent location in a growing metropolitan market, nearby business centers, and public transportation, 442 Residences provides quality housing for this dynamic area. It also has abundant outdoor amenity spaces and refined interiors that are attractive to residents of the community." Karl Slovin, President of MWest Holdings. Built in 2019, 442 Residences is comprised of studio, one- and two-bedroom loft-style units ranging from 524 to 1,043 square feet, with 9'9" to 11'1" ceiling heights, oversize balconies and wrap-around outdoor terraces, designer kitchens, washer and dryers, keyless entry doors, and smart thermostats. Residents have access to an array of high-end amenities including an ocean view roof deck, outdoor movie lounge, a hotel-inspired lobby, outdoor yoga and cardio areas, a state-of-the-art fitness studio, secure underground parking with EV charging stations, and an onsite bike share and e-scooter hub. Located in the center of Downtown Long Beach, 442 Residences is well-positioned in a walkable neighborhood with a variety of nearby shopping and dining options, and a thriving area for business. It is directly across from the new Long Beach Civic Center, home of City Hall, Port of Long Beach headquarters, and the Main Library. About MWest Holdings. MWest Holdings is an experienced real estate company with over 2 million square feet of residential and commercial property across the United States. Founded in 1991, MWest is known for creating innovative development solutions that instill a sense of neighborhood and integrity and create a lasting, tangible value. As a highly successful and stable owner of real estate, MWest has continually employed sound business practices, low leverage, and stringent underwriting guidelines for each investment opportunity. The company's success is anchored in a philosophy that imagination is the only limiting factor to growth.

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REAL ESTATE TECHNOLOGY

Broadmark Realty Capital Expands and Further Strengthens Board of Directors

Broadmark Realty Capital | April 26, 2022

Broadmark Realty Capital Inc., an internally managed secured real estate finance company, announced that it is strengthening its Board of Directors with the addition of a new independent director, Pinkie D. Mayfield, effective today. Ms. Mayfield’s addition increases the size of the Board of Directors to eight members, including six independent directors. We are very pleased to expand and further strengthen our Board of Directors. We welcome Pinkie and look forward to benefitting from her extensive experience in public relations, corporate affairs and investor relations. Pinkie will complement our already strong group of directors as we look to expand our business, execute our strategy to provide capital solutions for our customers, and maintain our commitment to our communities and the Company's stakeholders.” Dan Hirsch, Chairman of Broadmark’s Nominating and Corporate Governance Committee Ms. Mayfield has been Chief Communications Officer and Vice President of Corporate Affairs at Graham Holdings Company (formerly The Washington Post Company), a diversified conglomerate whose principal operations include education and media. In her current role since 2018, Ms. Mayfield is responsible for corporate affairs, public relations, communications and strategic initiatives. Since joining Graham Holdings in 1998, she has held a number of executive leadership positions. Prior to joining Graham Holdings, Ms. Mayfield was a Vice President and Trust Officer at NationsBank (now Bank of America) in the Investment Services Division. A director of Founders Bank, a Washington D.C.-based community bank, she has chaired the audit committee since joining the board in 2020. Ms. Mayfield also serves as treasurer of the board of directors of the District of Columbia College Access Program and a trustee of the Philip L. Graham Fund. Ms. Mayfield graduated magna cum laude with a BA in business administration from Trinity Washington University and earned an MBA from the University of Maryland University College. About Broadmark Realty Capital Broadmark Realty Capital Inc. is a specialty real estate finance company, providing financing solutions generally in the $2 to $50 million range across the entire debt capital stack for commercial and residential real estate opportunities throughout the United States. Broadmark is particularly well equipped to address complex financing requirements that require rapid response, investing across a variety of market conditions and economic cycles.

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REAL ESTATE INVESTMENT

Capital Square 1031 Acquires Recently Constructed 200-Unit Multifamily Community Near Richmond

Capital Square | December 24, 2021

Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for Section 1031 exchange and other accredited investors, announced today the acquisition of a recently constructed, Class A, 200-unit multifamily community in Midlothian, a suburb of Richmond, Virginia. The community was acquired on behalf of CS1031 Artistry at Winterfield Apartments, DST. Artistry at Winterfield is another superb addition to Capital Square's growing portfolio of Class A apartment communities in the Southeast to Texas, Located in Midlothian, Virginia, a short drive on Highway 288 from Capital Square's headquarters, Artistry is located in a well-to-do neighborhood with a median household income of $172,916 within a one-mile radius, according to Yardi Matrix. And the icing on the cake – 19.6% rent growth in the submarket, the highest year-over-year rent growth in the region, as of August 2021.* Artistry should provide investors with stable income during the holding period and exceptional appreciation potential." Louis Rogers, founder and chief executive officer of Capital Square. Located at 1000 Artistry Drive, the community is located 15 miles from downtown Richmond. Proximate to Highway 288, Artistry at Winterfield offers residents convenient access to multiple retail and dining options within Midlothian, including Target, Kroger, Wegman's, Sam's Club and more. Artistry at Winterfield offers one- and two-bedroom units with spacious floorplans that feature top-of-the-line finishes, including stainless steel appliances, in-unit washer and dryers, walk-in closets as well as private patios and balconies. Amenities at the community include a clubhouse, resort-style swimming pool and fitness center. Additional amenities include a resident lounge with a pool table as well as a business center. CS1031 Artistry at Winterfield Apartments, DST seeks to raise $35.2 million in equity from accredited investors and has a minimum investment requirement of $50,000. Artistry at Winterfield is located in Midlothian, a thriving suburb of Richmond, The population within a five-mile radius of Artistry at Winterfield is projected to increase 4.09% in five years.* Capital Square is bullish on the Richmond MSA, not only for its proximity to our firm's headquarters, but also due to its exceptional market fundamentals and notable growth." Whitson Huffman, chief strategy and investment officer. Since its founding in 2012, Capital Square has acquired 144 real estate assets for over 3,800 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 and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed approximately $4 billion in transaction volume. Capital Square's executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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 five consecutive years. Additionally, in 2021, the company was ranked 101st on the list of Inc. 5000 Washington D.C. Metro's Fastest-Growing Private Companies. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and 2021 as well as on their "Fantastic 50" reports in 2019 and 2020.

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REAL ESTATE TECHNOLOGY

National Association of Realtors: Why Industrial Spaces Lead Commercial Real Estate in Bouncing Back From COVID

National Association of Realtors (NAR) | March 28, 2022

Commercial real estate took a hit during the COVID-19 pandemic, as did many industries. But the market is starting to bounce back this year, largely due to increased investments in industrial properties. According to research by the National Association of Realtors (NAR), commercial real estate transactions of less than $2.5 million fell by 1% in the beginning of 2021 and the value of commercial real estate properties fell by 6% compared to 2020. Still, there is hope for the future as certain types of commercial properties are driving sales and seeing positive growth from the year before. Here's a closer look at how industrial spaces are helping commercial real estate bounce back from COVID-19. Spend on industrial properties and land increased Sales for all types of commercial real estate decreased in 2021, with the exception of three categories: land (+3%), industrial warehouses (+2%), and industrial flex spaces (+1%). That means, while businesses were shying away from commercial real estate lending for apartment buildings, offices, retail shops, and hotels, they were still spending money on industrial properties and land on which they could build their own structures. Prices rose for industrial properties, land, and apartments The number of commercial real estate transactions may have dropped, but sales prices increased by 2% on average. Specifically, prices for land increased by 6%, industrial flex spaces and warehouses by 5%, and certain types of apartment buildings by 5%. Meanwhile, sales prices declined for retail shops, offices, and hotels. Industrial and residential construction projects grew Commercial development projects are also on the rise for industrial and residential properties. Construction activity is up 1% from last year with a whopping 12% jump in construction for industrial warehouses, a 6% increase for industrial flex spaces, and a 6% growth for certain types of apartment buildings. Vacant malls, for example, are being converted into new types of commercial spaces, such as mixed-use buildings for residential, retail, and office purposes, as well as industrial buildings for distribution and fulfillment processes. Construction activity for retail spaces, offices, and hotels, on the other hand, dropped. Survey respondents noted certain obstacles to reaching their construction goals, including accessing materials, obtaining permits, and hiring workers. Office real estate activity shrunk due to remote work Office spaces, in particular, saw a decrease in real estate activity, largely due to an increase in remote work during the pandemic. Even though some people are heading back to the office, vacancy in these spaces continued to increase, reaching 16.4% from 13% in 2021. What's more, 70% of survey respondents said their companies are moving into smaller offices. Vacancy in industrial properties, however, declined to 4.9%. 2022 promises more growth This year may continue to be rocky for the commercial real estate market, with industrial and land investments pulling their weight. Specifically, businesses predict a 5% increase in land sales, a 3% increase in industrial warehouse sales, and a 1% increase in sales of certain types of apartments. By 2022, however, commercial real estate activity is expected to recover across all categories as more businesses reopen, travel resumes, and people return to the office. Still, sales for land and industrial properties are expected to lead this recovery process, proving their value as part of the commercial real estate market.

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Spotlight

Making real estate a part of your portfolios offers a host of benefits, including a stable income stream and strong returns, capital preservation and diversification through non-correlation to the broader markets. But not all real estate is created equal, and an active approach to investing in this dynamic asset class can help increase returns and reduce portfolio volatility. This publication will tell you more about the benefits of real estate investing in today’s market, as well as the different investment options available when accessing this asset class.

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