Multifamily Realities vs. Headlines
The pandemic has created significant problems for certain classes of real estate and while multifamily real estate has fared better than most, the impact of Covid on other sectors has created issues in the debt markets and in household income that has had an impact on all sectors and the economy in general. Defaults and foreclosures leading to discounted pricing have not yet occurred to any significant degree and while additional weakness is anticipated when eviction moratoriums are removed, the multifamily market is expected to remain stable due to pent up demand, agency lending and significant liquidity attracted to the sector.
The reason the fallout from Covid has been limited so far is largely due to actions taken by lenders, asset managers and tenants to work cooperatively in developing payment plans and workout solutions in lieu of taking more extreme measures.
- Changes in the market since March 2020 in terms of sales activities, acquisition opportunities, cap rates and debt markets.
- Asset classes and markets experiencing the most stress, expectations of fallout as compared to past recessions.
- How Sunstone has approached acquisitions over the last six months and investment strategy for the next 6 to 12 months.
- Discussion regarding the impact of Covid on construction/renovation projects as well as supply chain.
- Sunstone's experience with rent collections, occupancy and rent growth and the impact of eviction moratoriums.
- Covid challenges in asset management and operational changes made to meet the challenges.
Event Recording
Multifamily Realities vs. Headlines
- PowerPoint PresentationFLAIA Multifamily Webinar (4-15-2021).pptx10 MB
Speakers
Susan Tjarksen
- Title
- Managing Director @
- Company
- Cushman & Wakefield
- Role
- Moderator
Susan Tjarksen co-founded KIG CRE in 2015, which was acquired by Cushman & Wakefield in 2018. She has more than 30 years of real estate experience working with both private and public investment institutions throughout the country.
Prior to brokerage, Susan was a leader in apartment and mixed-use development, having planned, built, designed, financed and delivered projects totaling more than $3.5 billion in revenue. She has also successfully developed and sold 12,000 residential units, 2,500 hotel rooms and more than 2 million square feet of retail and office space.
Kristina Garcia
- Title
- Associate Director U.S. Multifamily Capital Markets Research @
- Company
- Cushman & Wakefield
- Role
- Panelist
Kristina Garcia is Associate Director of Americas Multifamily Capital Markets Research and a member of the firm’s center of excellence, which includes Cushman & Wakefield’s Global Chief Economist, Global Head of Forecasting, and the research heads of capital markets, retail, industrial, and occupier services. Kristina has spent 14 years entirely dedicated to the multifamily space with experience in valuation and advisory consulting, investment sales marketing, and macro-level strategic insights in research.
John Hansen
- Title
- Chief Investment Officer @
- Company
- Sunstone Properties Trust
- Role
- Panelist
John Hansen serves as Chief Investment Officer of Sunstone Properties Trust and co-founded the multifamily owner/operator in 2012. Prior to Sunstone, John was President/CEO of Glenwood Properties Inc., a development company he founded in 1987. Glenwood developed over 60 projects during his tenure including multifamily, retail and office. Mr. Hansen practiced law prior to entering the real estate business, specializing in securities and real estate.
John received a bachelor’s degree in literature from Brigham Young University and a J.D. from the University of Utah College of Law
Ernest Johnson
- Title
- Executive Managing Director @
- Company
- ApexOne Investment Partners
- Role
- Panelist
Ernest is an Executive Managing Director with ApexOne Investment Partners, a private equity firm investing in the multifamily sector. Ernest focuses on capital markets, fund strategy, financial administration, and investor communications. Ernest has extensive real estate experience with some of the industry-leading firms, including 17 years with PM Realty Group and 10 years with JMB Property Company.
Immediately following graduation from college, he managed a national multifamily student housing portfolio and was responsible for all facets of operations, including acquisitions, dispositions, construction, and finance.
Ernest is actively involved with National Multifamily Housing Council. He serves on the Advisory Council for Auburn University’s Master of Real Estate Development program and is also on the University of Florida’s Bergstrom Real Estate Center Advisory Board. Ernest previously served as the Chairman of the Board of Trustees for the Lone Star Chapter of the National Multiple Sclerosis Society and has been inducted into the MS Society’s National Fundraising Hall of Fame. Ernest graduated with a Bachelor of Science in Business Administration from Auburn University (1980).
Michael B. Cohen
- Title
- Vice President, Advisory Service @
- Company
- CoStar Group
- Role
- Panelist
Michael Cohen serves as Vice President, Advisory Services with CoStar Group, the leading provider of commercial real estate information, analytics and online marketplaces. Headquartered in Washington, DC, CoStar maintains offices worldwide with a staff of over 4,000, including the industry's largest professional research organization.
With views on markets in the United States, Canada and Europe, CoStar’s Advisory Services supports clients with independent expertise in real estate market analysis, real estate portfolio analysis, capital market conditions, investor communications and the design of actionable real estate investment strategies. Under Mr. Cohen’s leadership, Advisory Services provides a range of bespoke research services to a client list that represents a “Who’s Who” of global real estate market participants including commercial banks, insurance companies, Wall Street firms, government agencies, pension funds, investment advisors, real estate investment trusts, and private investors. Mr. Cohen regularly speaks to industry organizations, is often quoted in the national press, and has appeared on both CNBC and Bloomberg Television. Professional associations include the Pension Real Estate Association (PREA), National Multifamily Housing Council (NMHC) and National Apartment Association (NAA).
Prior to joining CoStar Group, Mr. Cohen worked for leading analyst organizations in both the real estate and technology industries. He received his B.A. from SUNY at Buffalo, J.D. from Cornell Law School, and M.B.A. from the Carroll Graduate School of Management at Boston College.
About
ApexOne Investment Partners
ApexOne Investment Partners, LLC, a Texas limited liability company, is headquartered in Houston, Texas, with offices in Chicago, Illinois, Boca Raton, Florida, and Phoenix, Arizona, and, together with its affiliates, has substantial experience in real estate acquisition, syndication, financing, development, and disposition, as well as real estate transaction management. James A. Hearn, Ernest Johnson, Tim Burns, William Saul, and David Steele are the principals of ApexOne (the “Principals”).
Following on the success of ApexOne Growth & Income Fund I, LP, a Delaware limited partnership (“Fund I”), ApexOne Growth & Income Fund II, LP, a Delaware limited partnership (“Fund II”), and ApexOne Multifamily Fund III, LP, a Delaware limited partnership (“Fund III”), ApexOne has formed ApexOne Multifamily Special Situation Fund IV, LP, a Delaware limited partnership (the “Partnership”), to make investments in direct and indirect equity interests in multifamily residential properties, including those requiring capital infusion, repositioning, post-development leasing or which may be subject to a distressed sale, as well as indebtedness secured by such multifamily residential properties.
ApexOne Investment Partners has acquired 46 properties and invested over $1.5B in workforce and student housing communities over the last seven years. ApexOne prides itself on providing excellent living environments to its residents, high returns, and transparent communications to its investors while reducing the environmental impact of their properties. Their fund level returns on fully cycled properties have averaged over 28% and Over 94% of ApexOne’s investors have repeatedly invested in all three of their Funds.
Sunstone Properties Trust
Sunstone is a fully integrated real estate operator, developer and fund sponsor in business since 2012. After 30 years in the commercial real estate business, the founders of Sunstone chose workforce multifamily housing as a sector because of its solid performance throughout varying economic cycles. Sunstone performs its own architectural design work, construction, asset management and fund management to achieve maximum efficiency, cost containment and investor returns. Its acquisition team sources transactions with proprietary software and a network of local brokers. Capital markets works with investors and lenders to optimize Sunstone's access to debt and equity. Risk is managed through a comprehensive due diligence and underwriting process with investment committee oversight. Hands-on portfolio management is effected from acquisition through disposition. Sunstone's markets include Texas, Florida, California, Arizona and Nevada.
Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services.
CoStar Group
We equip our clients with the information and tools they need to succeed in every aspect of their business, across all asset classes. As the largest commercial real estate information and analytics provider, we take pride in empowering industry professionals with the most compressive data to make decisions with confidence. That’s the power that comes with knowing.