Zillow: Housing slowdown likely to pass as second wave of Millennials enter housing market

Zillow | May 07, 2019

Although the housing market cool down has seen home price growth slow and inventory dwindle, recent data from Zillow suggests an oncoming wave of first-time buyers could turn things around.  According to Zillow’s analysis, an extra 3.11 million people at prime first-time home-buying age are projected to enter the market by 2028, further shifting the market in the favor of buyers.

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The construction cost data contained herein is of a general nature only and subject to confirmation with respect to specific circumstances. The unit rates for the building types described are an average range only for that particular type of building. The unit rates assume that a level, open site exists with no restrictions from adjoining properties. It is assumed that stable soil conditions prevail. Average-quality finishes (unless otherwise stated), both to the exterior and interior, are also assumed.


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REAL ESTATE INVESTMENT

StratCap Acquires Cleveland Data Center

StratCap | June 07, 2022

StratCap’s institutional data center real estate investment platform, Strategic Datasphere, LLC, has completed the acquisition of a 187,000 square foot facility with a high-density data center, banking operations center and flex/R&D space in Cleveland, OH. Serving as a central connectivity point between Chicago and New York, Cleveland has seen an influx of interest due to local and regional companies looking to outsource their data center presence. And because Cleveland is an NFL city, it has seen an increase of cloud and edge customer activity from AWS, Google, Microsoft, and Facebook who are looking to establish nodes and local zones in these markets. Located 5 minutes from the Cleveland Hopkins International Airport and 15 minutes from downtown Cleveland, this facility benefits from robust fiber connectivity from over seven providers. Originally built in 1988 as National City Bank’s operations and data center facility, it was expanded in 2008 when a major financial institution acquired the property to create a modern technology campus. This financial institution (an investment grade tenant) leases about 26% of the facility and has approximately 14 years of lease term remaining on their current lease. As a value-add investment opportunity, the property has approximately 138,500 square feet of space available to lease. There is an 8,000 square foot turn-key data hall that can supply 3 MW of critical power at N+1. The data center has a 48” raised floor with liquid cooled racks capable of supporting over 300 watts per square foot. The building also has about 59,000 square feet of flex/R&D space can likely be repositioned to accommodate additional data center space as well. We believe the existing 3 MW data center is unique in the local market and will be appealing to technology and financial services firms that run high-density compute applications. The ability to convert underutilized space into operational data halls also creates an attractive value-add opportunity for this asset. In addition, the current lease structure provides us with what we believe are long-term, predictable rental revenues.” Bryan Marsh, CEO of StratCap’s data center platform The Seller, Legacy Investing, LLC, a Virginia-based company focused on mission-critical real estate, was represented by Jones, Lang, LaSalle, Inc. Datasphere purchased the property on an all-cash basis. About StratCap StratCap is a privately held, global alternative investment management platform committed to providing access to dynamic asset classes and highly experienced investment professionals in order to provide clients with attractive risk-adjusted returns. The company is focused on a wide range of digital economy investments with an emphasis on digital infrastructure, sustainability, and technology-centric sectors. About Strategic Datasphere Datasphere is a data center real estate and infrastructure investment platform. Datasphere is focused on the acquisition, development and management of fully and partially stabilized data center facilities across North America and Europe. Datasphere has access to significant committed equity capital that is expected to support more than $1.5 billion in potential investments alongside debt financing. Datasphere is led by data center industry veteran, Bryan Marsh, and supported by a seasoned management team with several decades of collective experience in the data center industry. About Legacy Investing, LLC Headquartered in Northern Virginia and founded by seasoned technology company executives, Legacy Investing focuses on mission critical real estate impacted by new technologies: digital and physical supply chains, future workplaces, and life sciences. Legacy’s principals have leveraged this platform and their public company C-level experience across the past two decades to complete more than $2.75 billion in transactions across 19 million square feet of data centers, e-commerce distribution centers, modern office buildings, and life sciences facilities on behalf of select family office and institutional investors. Legacy leverages its expertise on technology’s impact on tenant demand, site selection, and leasing to target and position properties to meet those needs and create long-term real estate value.

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REAL ESTATE TECHNOLOGY

Faropoint Sells Portfolio of 109 Institutional-Quality Last-Mile Warehouses For $481M

Faropoint | July 06, 2022

Faropoint, a leading real estate investment firm focused on last-mile industrial properties in high population growth markets, today announced the sale of 109 institutional-quality, last-mile logistics buildings to a private buyer for $481 million. The portfolio consists of 6.8 million square feet of warehouse space largely concentrated in Atlanta, Philadelphia, Houston and Memphis. The close of this portfolio sale in the current market climate further demonstrates Faropoint’s successful strategy as an aggregator of individual warehouses in growth markets across the U.S. The firm leverages a proprietary origination platform to collect data from its team of investment professionals across nine U.S. offices. This curation of data arms Faropoint with actionable insights and analytics to identify mostly off-market opportunities to acquire last-mile industrial buildings. “This deal marks one of the largest portfolio sales of last-mile urban logistics centers in recent years and positions Faropoint to continue to provide significant value to its investors through its last-mile industrial funds,” Faropoint Chief Relations Officer Raz Rahamim The 109-building portfolio includes multi-tenant warehouse and light industrial properties, with each building averaging 62,000 square feet. The portfolio is 98 percent leased and occupied by approximately 200 local, regional and national tenants. During the firm’s 3-year hold period, Faropoint executed 120 leases across the portfolio, significantly increasing NOI and lease commitments. “Our firm is extremely bullish about last-mile industrial and we are optimistic that fundamentals will remain strong in this segment of the market long-term due to constrained supply,” said Faropoint Chief Investment Officer Ohad Portat. “We will continue to closely monitor market conditions and adjust our strategy as needed in response to macroeconomic trends and future volatility.” This disposition follows a record-breaking year of activity in 2021, during which time Faropoint acquired 148 buildings in 85 separate transactions. “Transacting at such a high volume across nine offices and aggregating data from thousands of deals allows our team to act with much more accuracy and certainty when vetting and underwriting deals.” said Faropoint Chief Executive Officer Adir Levitas. “As the current macroeconomic climate evolves, we will continue to assess market conditions, and are well-capitalized to act when the right opportunities present themselves.” Eastdil Secured advised Faropoint on the sale and financing of the portfolio, and Duval & Stachenfeld LLP served as legal advisor. About Faropoint Faropoint is a vertically integrated, data-driven real estate investment manager that leverages data and deep market relationships to achieve superior risk-adjusted returns. Faropoint targets inefficiencies in the marketplace that can be solved with technology and scaled to create meaningful positions using cutting-edge, proprietary, real estate underwriting and portfolio management methods. The company invests in markets with strong demographics and high construction barriers to entry, such as Atlanta, Dallas, Philadelphia, Northern New Jersey, Chicago, Tampa, Miami, and Memphis. Faropoint currently owns and manages more than 20 million square feet of industrial assets. About Eastdil Secured As the most relevant and trusted advisor in the commercial real estate capital markets, Eastdil Secured creates value for clients through creative, actionable ideas and flawless execution. With an unrivaled combination of capital markets expertise and in-depth understanding of real estate fundamentals, Eastdil Secured delivers best-in-class advice on mergers and acquisitions, sales, joint ventures, debt placement, structured credit and loan sales to investors around the world. Headquartered in New York, Eastdil Secured has a broad global footprint to support clients with offices across the United States in Atlanta, Boston, Charlotte, Chicago, Dallas, Los Angeles, Miami, Orange County, San Francisco, Seattle, Silicon Valley and Washington, D.C., and internationally in London, Paris, Frankfurt, Milan, Dublin, Dubai, Hong Kong and Tokyo.

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REAL ESTATE TECHNOLOGY

American Real Estate Partners Commits Capital to Its 6th Deal in Recently Announced Strategic Opportunity Fund III

AREP | July 29, 2022

American Real Estate Partners (“AREP”), and its Joint Venture partner Machine Investment Group (MIG) today announced the company’s latest investment in the logistics & distribution market, a 1,015,740 square foot industrial property located in Middletown, Delaware. This is AREP’s sixth investment through its Strategic Opportunity Fund III (“Fund III”) and is now 60 % deployed. The New Castle County industrial submarket has experienced meaningful growth, with the newly developed Route 301 Bypass transforming the ease of access to Middletown from Interstate 95. The current lack of easily accessible properties in Southern Jersey, Northern Delaware, and Eastern Pennsylvania has pushed tenants to seek strong alternate locations, the Middletown area is a premier example of this. “At AREP, we have sought to invest in those markets where we see growth of both tenancy and rents, We were drawn to this asset in a growing market as demand from Logistics & Distribution companies along 3PL providers continue to lead market absorption.” Doug Fleit, Co-Founder & CEO of AREP “Just weeks after announcing the closing of our third investment fund, this acquisition exemplifies AREP’s strategic and meaningful investments in the logistics market,” said Brian Katz, Co-Founder & President of AREP. “Our team has a proven track record of credibility and expertise in opportunistic investments, and we are proud to continue the diversification of our four asset pillars: industrial, data center, multi-family and office. We remain optimistic about Fund III and will continue to put its capital to work in a judicious manner.” In June, AREP announced the closing of Fund III with $63 million in equity commitments expanding on the diverse mix of public and private institutional investors and family offices. Fund III will continue AREP’s focus on a value-add and opportunistic strategy, concentrating on data center, residential, industrial, and office assets in East Coast urban and urbanized suburban markets. Fund III’s co-investment capital is targeted to invest in $1.5 B to $2.0 B of total asset value, utilizing moderate financial leverage. ABOUT AMERICAN REAL ESTATE PARTNERS Headquartered in the Greater Washington metropolitan area, AREP is an institutional fund manager and operating partner focused on data center, residential, industrial, and office assets, on both a development and repositioning basis in various markets along the East Coast. Since the company’s founding in 2003, AREP has deployed over $5.1B across targeted geographies, acquired more than 20 million SF of Class A real estate, and currently oversees over 10 million SF. AREP's vertically integrated real estate platform and experienced Management Team provide exceptional expertise in all ownership disciplines from acquisition to realization. By leveraging this expertise, AREP remains at the forefront of real estate innovation, maximizing investment and enhancing performance to provide added value for its investors.

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REAL ESTATE TECHNOLOGY

SkySlope Launches Breeze to Make Oregon Disclosures Fast and Effortless

SkySlope | June 03, 2022

SkySlope, the leader in real estate transaction software, has launched Breeze, an all-around simple and streamlined application making Oregon Real Estate Forms (OREF) disclosures easy for Oregon agents and sellers to complete. Since 2011, SkySlope has enabled brokers, agents, auditors, and transaction coordinators to track their deals while remaining compliant. Equipped with forms and a digital signature tool, SkySlope provides a frictionless workflow that saves time for agents. As the transaction management platform serving 35 percent of the top 20 largest brokerages in the U.S. and Canada, SkySlope is known for its award-winning customer experience. With the launch of Breeze, SkySlope gives agents the ability to prepare and send disclosures like the Oregon's Seller's Property Disclosure Statement (Form 020) at lightning speed. Breeze requires minimal preparation for agents to prepare and send disclosures to their clients in minutes, from anywhere. For home sellers, Breeze's TurboTax-style workflow helps simplify complicated and confusing disclosure forms—getting them completed quickly and with more confidence and accuracy. Breeze Features Streamlined disclosure preparation equipped with MLS data sync Status visibility, notifications, and easy revision requests Simple guided workflows with helpful tips for consumers Equipped with SkySlope DigiSign for free and unlimited digital signatures Seamlessly integrated with SkySlope's suite of products "Breeze is truly a one-stop-shop for faster disclosures," says Diana Costas of Golden Gate Sotheby's International Realty. "The guided workflow helps clients complete disclosures quickly and accurately and our agents can easily prepare disclosures, request signatures, and submit forms for compliance review." Disclosures are a common pain point for both agents and sellers. We're excited to launch a solution that takes a complicated process and makes it effortless for REALTORS® and home sellers." Tyler Smith,SkySlope CEO About SkySlope Established in 2011, SkySlope is a comprehensive transaction management platform for brokers, agents, auditors, and transaction coordinators to manage real estate transactions from anywhere at any time. In 2021, over 300,000 users across 8,000 offices used SkySlope to manage 2.25M transactions. SkySlope provides digital transaction management and services to help agents and brokers be more efficient and compliant. From automation to integrations, SkySlope's vision is to keep agents and brokers connected to the customer forever.

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Spotlight

The construction cost data contained herein is of a general nature only and subject to confirmation with respect to specific circumstances. The unit rates for the building types described are an average range only for that particular type of building. The unit rates assume that a level, open site exists with no restrictions from adjoining properties. It is assumed that stable soil conditions prevail. Average-quality finishes (unless otherwise stated), both to the exterior and interior, are also assumed.

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