Julie Blank Discusses Continued Growth in San Diego’s Multifamily Market with Western Real Estate Business

San Diego’s downtown skyline endlessly evolves as multifamily developers remain full speed ahead despite a changing economic landscape. Even with this growth, COO Julie Blank told Western Real Estate Business optimism from multifamily developers is fine, but caution should be exercised as well.

“Operators must take a strategic look at the demographics they are targeting and set their business plans to real-life scenarios,” Blank said. “What can residents actually afford? Business owners can’t be swayed into thinking that everybody can afford something a little bit better.”

In the current economic climate, New Standard Equities is looking even closer at expense reductions, centralized business functions, increasing in-place technology automation and cutting dividend payments, among other strategies, as it combats rising interest rates and property management costs.

However, Blank acknowledged that demand for multifamily is still there, particularly in expensive markets like San Diego.  

“With the increase in interest rates and the price of homes, multifamily is projected to continue to see high occupancy and rent growth,” Blank commented. “As rents continue to rise, so do home prices.”

Read the full Western Real Estate Business article here.

Apartment Owners Likely to Reap Rewards of Housing Market Headaches – Edward Ring & Julie Blank Discuss Favorable Multifamily Outlook with Bisnow

Ballooning home prices and rising interest rates in the for-sale housing market have served as an adrenaline shot for apartment demand, driving valuations up, but as inflation pummels the construction industry, the development pipeline still can’t keep up. In an interview with Bisnow, CEO Edward Ring and COO Julie Blank discuss why this is good news for existing multifamily owners but explain why they still need to be cautious.

“People are working, they’re paying their rent, they’ve gotten through Covid, and maybe they’ve been saving for years to buy a house — but suddenly the cost of everything about buying a house is way up, so they’re going to be renters still,” Ring commented.

A deep recession might bring the cost of housing down in a hurry, as it did in 2008, but in that case job losses would keep people in their apartments, Ring pointed out, though he’s skeptical that a recession in 2022 or 2023 would be the kind of implosion that happened during the Great Financial Crisis. 

“A lot of institutional money seems to be mistaking today’s outlook with that of 2008,” Ring said. “They’re bracing for another massive recession. There are some similarities, such as in rising home prices, but otherwise dynamics aren’t the same.”

In short, Ring expects home prices to remain relatively high, along with the cost of mortgages, as long as the Federal Reserve tries to tamp down inflation via interest-rate increases. Rising interest rates are expected to have a clear impact on housing sales and the current climate might make things tough for renters who want to own, but multifamily owners stand to benefit as renters remain in place. 

Despite an overall positive market outlook, multifamily owners should still be cautious, Blank told Bisnow.

“Operators must take a strategic look at the demographics they are targeting and set their business plans according to real-life scenarios,” she said. “What can residents actually afford? Business owners can’t be swayed into thinking that everybody can afford something a little bit better.”

Read the full article here.

CEO Edward Ring Adds Two Board Membership Positions

New Standard Equities Founder & CEO Edward Ring is bringing his expertise as a member of the board to two organizations.

Recently appointed to serve on the Center Theatre Group’s Board of Directors, one of the nation’s leading nonprofit theatre companies, Edward is dedicated to raising the profile of Los Angeles theatre, supporting the development of new work, and igniting interest in the theatre among the community’s youth.

Edward is also a newly elected member of the Board of Trustees for the Children’s Bureau, an organization which supports families through child abuse prevention and treatment. In joining the Board, Edward will continue to support the organization’s mission and fundraising activities such as the President’s Invitational golf tournament, its annual dinner, and various other initiatives.

COO Julie Blank Recognized as 2022 Woman of Influence by GlobeSt.com

Chief Operating Officer Julie Blank was selected as a 2022 Woman of Influence by GlobeSt.com for her distinguished work and leadership in the multifamily industry. The award recognizes commercial real estate female professionals for their remarkable achievements.

Julie has nearly 20 years of multifamily management and investment consulting experience. She leads the Firm’s corporate operations as well as multifamily operations including capital projects and asset management.

GlobeSt.com’s 2022 Women of Influence Awards list was selected based on candidates’ impacts to the market and industry, as well as a record of outstanding success.

Find the full list here.  

Edward Ring Participates as a Panelist at Multifamily Forum: California

New Standard Equities CEO Edward Ring spoke at the Marcus & Millichap / IPA Multifamily Forum: California on the panel, “Emerging Submarkets & Value Add Opportunities,” where he discussed the direction that the multifamily market in California is heading and NSE’s competitive advantage.

“NSE is vertically integrated, but we’re a tenth of the size of some of our competition, which I think gives us an advantage. We’re small, and that gives us near-perfect information at all times,” commented Ring. “I have a team in the field that can operate from 5 to 8,000 units. We can move quickly and we can move things fast. We can react in real time and control our expenses.”

The panel’s moderator pointed out the hesitancy some investors may hold about investing in California real estate, a topic that permeated the conference. When addressing the future of California’s multifamily market, Ring added, “The fundamentals remain strong in California. Real wages, real wage growth, full employment. Really, there is nothing to stop this economy barring another black swan event. So, I think values will still be up.”

Held on Tuesday, June 7, 2022 at the Hilton Los Angeles Airport Hotel, the forum brought together hundreds of stakeholders in the multifamily industry for in-person learning, idea sharing, and deal making.

Learn more about the conference here.

View the recording here.

CEO & Founder Edward Ring Recognized as Leader of Influence by Los Angeles Business Journal

We are pleased to announce that New Standard Equities Chief Executive Officer and Founder Edward Ring has been selected for Los Angeles Business Journal’s 2022 Leaders of Influence Private Equity Investors and Advisors.

As CEO, Edward leads New Standard Equities’ investment strategy, operations, risk management, and investor relationships. He has over 25 years of real estate and financial consulting experience.

Los Angeles Business Journal’s Leaders of Influence Lists recognizes Los Angeles trailblazers in the Private Equity sector. Edward was named among dozens of other professionals for his notable work in the field.

Read more here.

Julie Blank Participates as a Panelist at IMN’s Real Estate CFO & COO Forum

New Standard Equities’ Chief Operating Officer Julie Blank participated on the Real Estate Operational Executives Roundtable at IMN’s 9th Annual Real Estate CFO & COO Forum on May 17. The event gathered experts in real estate, lending, and operations in Dana Point, CA to participate in discussions and sessions about real estate topics including accounting, regulations and technology, and more.

As a speaker, Julie joined other COOs, CFOs, Tax & Accounting Officers, , and other professionals in leading educational sessions. Julie shared her experience as a COO at the Real Estate Operational Executives Roundtable, where she and other panelists discussed operational challenges and lessons that have come about throughout the pandemic and the current economic climate.

Learn more about the forum here.

New Standard Equities Supports Children’s Bureau Golf Tournament as Benefactor Sponsor

New Standard Equities Founder & CEO Edward Ring supported the Children’s Bureau Golf Tournament as a Benefactor Sponsor for the second year in a row. Edward is one of 28 senior executives, partners, and directors of Los Angeles’ business community running the event as part of its 2022 committee. The 40th annual President’s Invitational golf tournament benefited the Children’s Bureau’s work supporting families through child abuse prevention and treatment.

As a leader in their field for over 100 years, the Children’s Bureau provides programs for children and families, professional training and community initiatives. The golf tournament acts as a vital source of fundraising for the Children’s Bureau, having raised over $9 million since the first event.

Read more about the organization here.

Multifamily Investors Should Not Write Off the West Coast– Edward Ring Interviewed by GlobeSt.com

Some multifamily investors, particularly private high net worth individuals, have been strategically leaving the West Coast for Sunbelt growth markets, but New Standard Equities Founder & CEO Edward Ring says it’s too early to write off the region. In an interview with GlobeSt.com, he explains that the capital trend out of the area is a mistake because the housing shortage provides great opportunity in both the short and long term.

“In California, greater Portland and greater Seattle, there is a tremendous shortage of housing and the available housing stock largely doesn’t meet the demand, and won’t for the foreseeable future,” said Ring. He explains that the demand comes from a highly educated workforce, many of whom work in leading tech and biotech industries and these fundamentals offset the political climate and other challenges of investing in the region.

“Investors may not love the political environment here, particularly in the Bay Area and Los Angeles metros, which admittedly adds some uncertainty to the region, but ultimately the fundamentals in the West favor multifamily investment. Over the long haul, we’ve all done quite well in navigating the complexities in this area,” he adds.

Despite headlines and the narrative that people are leaving California and the West Coast as a whole, Ring points out the current outflow isn’t a cause for concern. “If California, the world’s fifth or sixth largest economy did suffer seriously meaningful out-migration, I would assume that would have a devastating effect on the rest of the US, including the markets that are seeing investor enthusiasm for the first time.  It would take a long time for this economy to be replaced.”

Read the full article here.

How Can Multifamily Be in a Bubble Without Oversupply? – Edward Ring Discusses State of the Industry in Bisnow Interview

Since the start of 2021, unprecedented rent growth and historic levels of liquidity in the capital markets have pushed valuations increasingly higher in the multifamily industry. In an interview with Bisnow, New Standard Equities Founder & CEO Edward Ring discussed the explosive growth in multifamily and factors playing into it.

While rents are rising across all markets across the country due to inflationary pressures, value-add properties are the most sought-after deals on the market, and the competition for them threatens to erase the very value proposition on which such deals are based. Reports of value-add properties being sold above replacement cost in the hottest markets have grown commonplace. “I think that the demand to put money out from some of the large investors and institutional groups has them making an excuse for why this or that property is particularly ‘special’, or, ‘Oh, you can’t build anything today so this or that one makes sense,’” said Ring. 

The areas in which the housing market may be overheating are in the Sun Belt, particularly certain cities in Arizona, New Mexico, Texas and Florida.  While population growth there has been the steepest since the pandemic began, and rent prices following suit, job creation over the long term may not keep pace.

Ring adds, “Even though supply is trailing demand in the Sun Belt, construction prices are lower than in traditional gateway cities and the threat of political intervention like rent control is more distant, making the prospect of development ramping up to close the supply gap more realistic than some might expect. On the West Coast, there’s so little land and there’s so little political will to allow developers to build more. If developers are really looking at runaway rent growth in the Sun Belt, or markets like that which have very few restrictions in terms of what you can and can’t build, I’d be cautious about those markets facing an oversupply problem in the longer-term.”

Read the full article here.