2022 was a challenging year for real estate. Record-breaking rent growth and sizable deals were the norm a year ago, but they have since been supplanted by historically high interest rates, investor hesitation, and a pall cast by turbulent international markets. In times such as these, it could seem impossible to focus on the long run and not let fear cloud one’s judgment. But being myopic rarely pays off. Though we cannot control most factors that exert influence over the market, we can depend on strong submarket fundamentals across the portfolio and reasonable investment horizons. The holding period for a typical New Standard Equities property, which is usually between five and seven years, is long enough to outlast a typical recession and emerge on the other side without deviating from the overall business plan.(more…)
Repositioning Apartments with Minimal Risk – Edward Ring Interviewed on Best Real Estate Investing Advice Ever Podcast
Interviewed on the Best Real Estate Investing Advice Ever podcast, Founder & CEO Edward Ring discussed the difference between a value-add and repositioning business plan, how he cautiously approaches repositioning apartment buildings, and which apartment interior updates have led to the most success for his business.
When discussing if there is a difference between a value-add business plan versus a repositioning business plan, Ring said: “I do think there is a difference. I believe you can have a value-add apartment project and understand you can make some upgrades like [renovate or add] a fitness center, but that’s the extent of it. However, you can also find a project in a B class position and there are no other B+ or A- luxury properties in the submarket, so in those circumstances, there is a true repositioning play. It’s a rebranding – taking your community previously be known as X and creating a new space for it as Y.”
Edward Ring Discusses Market Dynamics for Class A and B Assets on How to Scale Commercial Real Estate Podcast
Founder & CEO Edward Ring joined How to Scale Commercial Real Estate podcast to discuss market dynamics for Class A and Class B assets in the multifamily sector. Ring covered a range of topics including why there is value and opportunity on the west coast, how rent control is a major issue for the California multifamily industry, the dynamics of pricing in different markets, and more.
Listen to the full episode here.
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Now that the dust has settled on the first half of 2022, it is important to take a moment to consider the climate surrounding commercial real estate, specifically multifamily. The record-breaking transactions and high rates of returns of 2021 have given way to a much less steady investing environment, which resulted in a slower, but not stalled, rate of capital movement.(more…)
COO Julie Blank Joins Claire’s Place Foundation Board of Directors to Raise Awareness for Cystic Fibrosis
Honoring her late husband’s cystic fibrosis journey by assisting others, COO Julie Blank has joined the Board of Directors with Claire’s Place Foundation, a non-profit organization providing support to children and families affected by cystic fibrosis (CF).
“In 2007, my husband passed away from CF, our twin boys were just three years old,” Julie said. “I am now in a place in my journey where I am ready to devote my time to a cause that honors my husband and other CF warriors. In my research, I found Claire’s Place Foundation. After reading Claire’s story and learning about her foundation, I did not have to search any further. Her energy, selflessness and love of life mirrored my husband.”
“It was a clear and unanimous decision to elect Julie to our board,” commented Claire’s Place Foundation Executive Director Melissa Yeager. “Not only does she bring her personal experience, but also a wealth of professional experience. We are honored to have her join us in fulfilling Claire’s mission here at Claire’s Place.”
Claire’s Place Foundation is a 501(c)(3) non-profit organization providing support to children and families affected by cystic fibrosis. The foundation is named in honor of Claire Wineland who lived with CF her entire life and died at the age of 21. She was an activist, author, TEDx Speaker, social media star and received numerous awards. Claire’s foundation was a way for her to assure that others living with CF enjoyed the same hope, strength and joy that she enjoyed. Recipient of Los Angeles Business Journal’s “Small Nonprofit of the Year” and “Fundraiser of the Year” for its annual Glow Ride, the foundation provides grants to families affected by CF, offering both emotional and financial support. Learn more: www.clairesplacefoundation.org.
There was a substantial dislocation on the institutional equity side of our industry as players continue to seek equilibrium regarding asset pricing and interest rate exposure. While still ongoing, consensus on whether or not the aggressive interest rate increases will cause a recession over the next twelve months is still a matter of debate. New Standard Equities is monitoring the debt and equity markets, yet remains bullish in the sector. While the effects of rising interest rates have had a significant impact on cash flow, rents across our entire portfolio have been rising at an unprecedented rate. Of course, rent is a part of the inflation metrics that the Fed is trying to control, but inflation is not the sole culprit behind the tremendous revenue bumps in NSE’s rent rolls. The firm’s investment thesis has always been to work in markets with a sustained imbalance in the supply and demand for housing. Further, the Acquisitions team has carefully selected markets that exhibit high education levels and cater to the knowledge economy. There have certainly been inflationary pressures in NSE’s markets on wages, but that’s also helped tell the story of why many properties are reacting well to leasing programs, often producing lease trade-outs ranging from 15% to 40%. Operationally, the firm is perhaps the strongest it has been since the beginning of 2020.(more…)
New Standard Equities COO Julie Blank joined IMN’s 5th annual Middle-Market Multifamily Forum: West as a moderator for the panel “Revenue Management, ROI Best Practices and The Amenities That Unit Owners Are Looking For In This Market”, or what Blank calls a little “R&R”. Panelists discussed ROI, NOI and technology, what works for smaller landlords, buildings and units, as well as how work from home has changed and what Gen Z is looking for.
Held September 8-9, 2022 in Santa Monica, CA, the Forum brought together hundreds of small and mid-sized multifamily owners for networking and business development opportunities.
Learn more here.
Balancing Tech with In-Person Engagement in Property Management – Q&A with Stacey Darden & Multi-Housing News
The multifamily apartment industry, although slower than others at adopting new technology, has more recently been making strides towards integrating it into property management. In a recent Q&A with Multi-Housing News, Stacey Darden, the Senior Director of Innovation & Compliance at New Standard Equities Inc., spoke about technology’s growing role in successful operations at multifamily properties.
When asked about recent technological advancements in property management, Darden explained that pandemic restrictions revealed not all customers need to be toured around a community. “They can do their research at home and will only visit up to three communities they are seriously considering. This requires a robust community website showcasing the community in the best light, self-guided tours, a paperless and seamless application process through the lease signing and move-in,” says Darden.
Darden detailed the success New Standard Equities has in using a range of technology in day-to-day operations, including an analytics platform to review property performance in real-time, a CRM platform to centralize the flow of communication with prospective and current residents, email and texting capabilities, and Property Management Specialists (PMS), which is a repository for NSE’s financial and resident data.
In the face of the Great Resignation, technology can help with labor shortages by offering some self-service capabilities to customers. However, customers still want to know there is a human there for concerns, who will hear and address them.
Read the Q&A here.
The technology used to manage multifamily systems is essential to both streamlining operations and fostering the relationships that are key within the multifamily real estate space. COO Julie Blank joined the Commercial Real Estate Pro Network podcast to discuss the role technology plays in bringing teams together in a geographically dispersed industry.
“The intrinsic nature of our industry creates natural barriers because of being geographically dispersed, so we do really rely on technology in order to bridge that gap,” said Blank. “We have a lot of the portals: we’ve got investor portals that help us communicate with our investors, resident portals to help communicate with residents, employee portals to communicate with our employees, training portals, and reporting portals. But we still really focus on the face-to-face engagement because real estate is still a lot about relationship building.”
Listen to the episode here.
Proptech Improves Employee, Asset Performance While Giving Residents the Autonomy They Demand – Stacey Darden Authors Article for REBusiness Online
The multifamily industry relies on technology to increase productivity and to help make strategic decisions across properties. In an article for REBusiness Online, Stacey Darden, Senior Director of Innovation and Compliance, discusses why selecting the right technology partner is critical in today’s tight labor market.
“Selecting a technology provider who will partner with clients and help customize reporting based on the client’s needs will not only decrease time spent reviewing multiple reports, it also will create a more consistent method for processing information,” writes Darden.
Read the full article here.