MULTIFAMILY NEWS
- Pittsburgh, the City of Bridges is on the rise. According to a Yardi Matrix report, housing demand is high and supply is relatively low.Pittsburgh is continuing to provide high returns for investors (as high as 9% for value-add deals) and rent is expected to rise 2% in 2019.
- Across the Pond. According to MultiFamilyBiz, Greystar Real Estate Partners recently announced a new fund to develop purpose-built housing properties in the UK. “There’s a significant need for professionally developed rental housing in the U.K. as the current stock is under-supplied, outdated and poorly managed,” said Bob Faith, Founder, and CEO of Greystar.
- Rent prices up in L.A. The Los Angeles rental market is seeing 4 months of consecutive rental increase. The cost of a two-bedroom apartment increased .7% in May year-over-year. Compared to the National average of $1,190 for a two-bedroom apartment, L.A. sits at $1,750 per month.
- Denver, Colorado remains hot for multifamily investors. Since 2010, the mile-high city has grown by 20% and is picking up again. Matt Helsin, CEO of Heslin Holdings continues to be bullish on Denver as his company plans to invest $400m in capital across commercial asset classes over the next 12 months.
NATIONAL NEWS
- The largest private real estate deal in history. Blackstone agreed to buy the US warehouses portfolio of Singapore-based GLP for $18.7 billion. In doing so, they’ll beef up their portfolio by 1,300 industrial warehouse properties. Blackstone is making a big bet on the rise of online shopping.
- Cori International Investments is offering compensation to Uber drivers who help them find properties to flip. Based in Atlanta, Georgia, Cori is building out a program in which Uber drivers take photos of rundown homes for flipping purposes in exchange for a piece of the profit. Over 100 drivers are enrolled in Cori’s Deal Program.
- Miami Beach is piloting an on-demand, electric transportation service in lieu of growing traffic concerns. The partnership with Freebe will offer door-to-door transportation to areas underserved by public transportation. To catch a Freebe, users can use the app or hail a passing car.
- Major changes are coming to Fannie Mae and Freddie Mac. The Trump administration is planning to release the mortgage agencies from government control. Some folks in the multifamily industry are concerned that re-privatizing could destabilize the mortgage industry.
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