Kelley Clarke, PC’s Post

Yesterday I attended the Interface Kansas City’s Multifamily Conference and got to hear from a plethora of individuals across the area as they provided insight on all things multifamily. I got to chance to connect with countless individuals such as Mark Moberly Kyle Tucker Kale Joyce Harry Trotter Colson Bayles Steve Stollman and many more. Networking events are always a blast. Here are the biggest takeaways from the event⬇️⬇️ Why Kansas City? ⁃Has one of the best rent to income ratio in the country ⁃Diversity in employers ⁃Healthcare is biggest industry and is seen as recession proof -Patrick Mahomes?!?!!! State of Market: ⁃CMBS basically non-existent because 7-7.5% simply doesn’t work ⁃Used to UW insurance in KC at $300/ door now that # is almost double ⁃In order for buyers to get the same returns 1 year ago, you have to lower purchase price ⁃Banks are limiting exposure on certain asset classes ⁃Highly syndicated & high construction are hard to get done ⁃C+ value add deals are getting done due to upside bank & lenders see ⁃Panel believes rates will begin to trickle down starting Q2 2024 Design and Architecture: ⁃Hard to get deals off the board ⁃Looking at a lot of projects & learning to be adaptive ⁃Amenities are shrinking in sqft ⁃Amenities are being positioned to multi-use to adapt and convert over time ⁃Steel pre-pandemic was $30/sqft and now $45/sqft ⁃Cost of painting is issue for developers Developers/ Owners / Investors: ⁃Massive shift in equity being pulled back, increase focus on HNW individuals ⁃A++ site & well capitalized groups are most deals getting done - still takes longer ⁃Have to take leap of faith in KC and understand we are in a great market ⁃Getting competitive construction bids is very tough ⁃Bullish on the KC streetcar expansion and potential new location for Royals. Believe this will only help KC continue to grow in all directions ⁃Urban core micro units are becoming more popular & could help solve the “affordable housing” need in KC ⁃Only way to develop LIHTC deals is for subsidies from community & county ⁃KC did a lot of LIHTC deals 10-15 years ago, many of which are about to transition to market-rate, only growing the need for affordable housing Investment/ Brokers: ⁃Almost all deals getting done are groups going in with negative leverage at a 4.5-5 tax adjusted cap with opportunity to push to 6-6.5 cap rate ⁃60’s & 70’s product in KC being traded between 5.5-6 cap ⁃Groups need to buy into the business plan to get deal done ⁃Groups are simply UW to certain IRR or CoC levels and don’t even look at the cap ⁃Basis lasts forever ⁃A-A+ deals are down 90%+ transactionally ⁃KC is and always will be geared towards private equity A lot to go over from the meeting yesterday. Excited to go into more detail over the next few weeks and share my findings. For more of my multifamily content, feel free to give me a follow on X. www.x.com/zachmolzer #retwit #crex #multifamily

It’s not every day you come across a multibillion-dollar real estate investment. However, when these things do happen, it’s often a positive sign of where the market lies. Blackstone is pursuing this deal due to interest rates stabilizing, it’s easier to access capital, and the ROI upside foreseen. #RealEstate #PropertyInvesting #ROI

I’ve been having some good conversations with investors about our upcoming single family build to rent, Multifamily and hotel investing opportunities. It is a process of building relationships and one of my favorite parts of the business #ariacapitalpartners #cre #buildtorent #multifamily #hotelinvesting #raisingcapital

Private capital remains the primary source for multifamily investment composed of syndicators, family offices and high-net worth individuals. In the early- to mid-2000s, private capital accounted for 48% of multifamily transaction volume, and from 2015 to today that share has increased to 54%.

🐂 On the heels of its recent Tricon Residential $3.5B acquisition in the Single Family Rental sector, and their current views on a bottoming of real estate values, Blackstone announces its largest acquisition in the multifamily sector - via a $10B acquisition of publicly traded AIR Communities. 🏙 Blackstone is making waves in the real estate market with its bold move to acquire AIR Communities, marking its largest transaction yet in the multifamily sector. With a commitment of about $10 billion, Blackstone's acquisition underscores its confidence in the market's resilience and its strategic vision for the future. 💰 Despite recent market uncertainties, Blackstone's decision to invest heavily in apartment buildings sends a strong message of optimism. By injecting an additional $400 million to enhance these properties, Blackstone is not just making an investment, but a statement of belief in the potential of rental housing. 🔍 Jonathan Gray, COO and President of Blackstone, aptly stated, "We are not waiting for the all-clear sign and believe the best investments are made during times of uncertainty." This sentiment encapsulates the ethos driving Blackstone's proactive approach, demonstrating that opportunities abound even amidst market fluctuations. 🏗 This acquisition aligns with Blackstone's broader strategy of diversification and seizing opportunities across various real estate sectors. From data centers to single-family rental homes, Blackstone's recent ventures exemplify its adaptability and foresight in navigating dynamic market conditions. 💼 Furthermore, Blackstone's acquisition of AIR Communities at a 25% premium reflects its confidence in the long-term value of the investment. This move not only benefits shareholders but also underscores Blackstone's commitment to delivering value and driving growth. 📈 As we navigate through evolving market dynamics, Blackstone's bold move serves as a beacon of optimism. It reaffirms the resilience of the real estate sector and highlights the opportunities that lie ahead for savvy investors. #marketoptimism #publicprivatevaluations https://lnkd.in/ejjJSdSD

⚡ Thank you to Zach Haptonstall, MBA and the Rise48 Equity team for allowing GoldHawk Capital and Impact Equity LLC to raise an independent pool of capital for the Rise Heather Ridge deal! 👉 We write large checks for deals like this and can negotiate better profit splits for our investors. 💡 Want to stay up to date on our future opportunities? Visit the link in the comments! #passiveincome #commercialrealestate #multifamilyrealestate

⚡ Thank you to Zach Haptonstall, MBA and the Rise48 Equity team for allowing GoldHawk Capital and Impact Equity LLC to raise an independent pool of capital for the Rise Heather Ridge deal! 👉 We write large checks for deals like this and can negotiate better profit splits for our investors. 💡 Want to stay up to date on our future opportunities? Visit the link in the comments! #passiveincome #commercialrealestate #multifamilyrealestate

We are excited to announce that we acquired the 192-unit Saddlehorn Vista Apartments in Fort Worth, TX. This purchase is our first acquisition in the Dallas-Fort Worth metro (DFW) and the final acquisition in our third value- add investment fund, the Multifamily Transformation Fund. We waited patiently for much of the past two years as values first peaked in 2021. As a result, we’re able to buy today at a healthy discount to pricing from a year ago in a city that is the “fastest growing in America.” #apartmentinvesting #apartments #calvera #calverapartners #cashflow #commercialrealestate #cre #diversification #housing #investing #investment #investmentproperty #investments #investor #mulitfamily #mulitfamilyinvesting #multifamilyhousing #multifamilyinvestments #multifamilyinvestor #multifamilyinvestors #multifamilyrealestate #realestate #realestateinvesting #realestateinvestment #realestateinvestor #realestateprivateequity #rentalproperties #wealthmanagement

In the last 8 months, we've successfully hit target rents in nearly 70% of our portfolio! 🎉 This achievement is a testament to our strategic approach and deep understanding of the New Hampshire real estate market. This milestone reinforces our confidence in our model and encourages us to continue expanding our portfolio. We remain committed to delivering excellent returns for our investors through careful property selection and top-notch management. We’re excited about what the future holds and are dedicated to moving forward with the same level of diligence and passion. Here’s to more successes and continued growth! 🌟 Comment "Invest" to get started 💡 #realestate #success #ClosedDeal #propertyacquisition #passiveinvesting #realestateinvesting #nhinvesting #passiveincome #multifamilyinvesting #realestate

Stunning architecture, quality and economies of scale.