May 15, 2023 | Media, PR
New Standard Equities Founder & CEO Edward Ring participated in the Multifamily Panel at RENTV’s Inland Empire State of the Market Conference on May 9, 2023. The panel discussed why they originally began investing in the Inland Empire, the limited supply of housing coming down the pipeline and continued interest from potential investors in the area.
The conference featured panels of top local executives and dealmakers discussing the industrial, office, retail, multifamily and finance markets throughout the Inland Empire.
Apr 12, 2023 | Media, PR
Multi-Housing News and The Registry reported on New Standard Equities’ $19.8 million refinancing secured for Village Fair Apartment Homes, a 120-unit multifamily community in Bremerton, Wash. Read the articles below as well as more about our approach to increasing revenue and controlling expenses to deliver strong returns to investors.
Mar 31, 2023 | Media, PR
– Asset Has Achieved 92.89% Improvement in Net Operating Income Since Acquisition –
Encino, Calif. (March 31, 2023) – New Standard Equities (NSE), a Los Angeles-based, full-service multifamily investment and management company, completed a $19.8 million refinance of Village Fair Apartment Homes in Bremerton, Washington, on March 31, 2023, continuing its strong focus on delivering equity back to investors, even in a challenging real estate market. This was the third refinance of the 120-unit property since its purchase for $13.1 million in December 2016. Its appraised value today is $30.6 million.
The property was first refinanced in 2018 and underwent a second refinance of $18.6 million in 2020 that continued the repatriation of equity to investors and positioned the asset for additional long-term growth. NSE has spent over $2.2 million in capital improvements including renovating 90 percent of the units.
“In executing the Village Fair business plan, our emphasis every step of the way has been on increasing revenue and controlling expenses to move our net operating income in such a way as to make refinancing possible,” said NSE Founder & CEO, Edward Ring. “We are pleased this property has achieved a nearly 93 percent improvement in NOI from year one and our percentage of expenses of gross revenue is down to the current level of 38% which is considered best-in-class operations. We beat our projections by a significant amount.”
NSE closed the refinance with a 5-year, fixed rate, interest only loan at 5.63%. The lender was Fannie Mae through M&T Bank and sourced by Brian Eisendrath at IPA.
About Village Fair Apartment Homes
Built in 1984, Village Fair Apartment Homes is a garden-style apartment community located in close proximity to Silverdale, one of the fastest growing submarkets of Kitsap County. The community provides easy access to the Kitsap Mall, downtown Bremerton and the Bremerton Ferry Terminal, allowing residents to travel to downtown Seattle in as little as 30 minutes. The property caters to both individuals and families and offers spacious 1×1, 2×1, 2×2 and 3×2 floor plans. Kitsap County is home to Naval Base Kitsap, one of the largest employers in the area, as well as St. Michael Medical Center and an Amazon delivery center that boosts local employment.
New Standard Equities is a leading, vertically-integrated real estate investment and asset management firm that specializes in the acquisition and operations of multifamily properties located throughout the Western U.S. Founded in 2010, NSE is known for its best-in-class creativity, consistent investment process to deliver strong cash flow and asset appreciation, and institutionally-trained executive team with extensive operational expertise. NSE is able to deliver outstanding returns to investors by providing the ideal living experience for residents through “Just Right” Living™ – matching every dollar residents spend on rent with the delivery of what they truly value.
15910 Ventura Blvd., Ste. 1450
Encino, CA 91436
Phone: (818) 582-3589
Orange County Office
2151 Michelson Dr., Ste. 175
Irvine, CA 92612
Jan 23, 2023 | Media, PR
Los Angeles’ multifamily market is already experiencing uncertainty from rising rents and dropping vacancy, but high interest rates and the city’s looming tax on real estate transactions are adding to it. Bisnow spoke with New Standard Equities Founder & CEO Edward Ring on how this could impact L.A. multifamily investment in 2023.
During a recent attempt to acquire a property in North Hollywood, Ring saw firsthand some sellers attempt to exit the market before Measure ULA goes into effect and how this compares against an uncertain market and a buyer pool that expects to get an urgency discount.
“Everyone swarmed on this one property thinking it was going to be a deal, but instead, we came up pretty short in terms of where we thought value would be,” Ring commented. “Ultimately, the seller found out where the market believes the values to be and has elected not to sell,” he added.
The rising cost of borrowing is also putting pressure on the market but from a historical perspective, interest rates are “not too terrible,” adds Ring.
Read the full Bisnow article here.
Jan 20, 2023 | Media, PR
Despite historically staunch opposition from the multifamily industry, rent control is unquestionably gaining traction in municipalities around the country. Multi-Housing News interviewed New Standard Equities Founder & CEO Edward Ring on the silver lining of rent control in California but how poorly written laws could have adverse consequences in other jurisdictions.
“Rent regulation and the COVID moratoria helped keep rents from soaring out of control in California in recent years. This has forced cap rates down to unprecedented levels in the trendier markets,” commented Ring. “It may help the state stabilize through the next recession and a faster pace given the nature of tech employment and a persistent lack of housing supply. California doesn’t have that far to fall and recovery won’t take long.”
If cap rates compress by 250 points in the Sun Belt, it may cause pain for those who bought at peak pricing. California investors who bought similar product—but at a cap rate that compressed by 100 points, as the evidence suggests—may be rewarded for their investment in the Golden State, especially as wages are higher than average in California and supply tends to be constrained.
Despite these potential results, operators in cities that are implementing new rent control laws or make their laws too strict, may struggle to work under these constraints, explains Ring.
Read the full story “How Rent Control Ballot Measures Are Mounting,” here.
Jan 20, 2023 | Media, PR
With increasing interest rates, rising unemployment and other factors, real estate investors may have to settle for less profit in the long run, Founder & CEO Edward Ring told KNX News Radio in an interview.
“The days of buying property with near zero interest rate loans and expecting big profits could be over for a while,” Ring said. “You might need to be satisfied with a 10-12% annualized return with your appreciation.”
Although, he noted that even with a lower profit rate, when compared to the volatility or downsides of stocks or other investments, real estate will remain a preferred investment vehicle.
Listen to the interview here.