a

Will Employment Shifts Increase Apartment Demand?


Adult children moving out

Financial strength may allow a record number of adult children to move out of their parents house. Will this increase apartment absorption or home-ownership? A June 2017 Marcus & Millichap research brief says that the adult children who will move out are likely to rent. The research brief noted, “The catalyst for the releasing of these pent-up households is the increasing number of part-time workers making the jump to full-time employment as the underemployment rate declines.” Job openings are at an all-time-high, resulting in a 16 year low for unemployment. The financial strength young adults are gaining from entering full-time employment is enough to begin relying less on parents for financial support. Renting gives young adults their independence without the hefty costs of buying a home, while still paying off student loans.

CNBC Money: The smallest difference is still a third more to own

“Owning is More Expensive Everywhere”

A recent CNBC Money article reinforced the prediction of the continued increase in renter-ship trends. The article referred to a NerdWallet analysis that concluded, “homeowners in all 50 states and Washington, D.C., pay from 33% to 93% more for housing each month than do renters living in the same state.” The Southeast United States region was on the lower end of the scale with the states ranging from 33% to 50% high home-ownership costs than renter-ship. In North Carolina and Tennessee, it costs 49% more to own a home, with South Carolina and Georgia falling slightly behind at 43%. To determine the monthly home-ownership premium, The NerdWallet analysis compared median gross renting costs to median home owning costs across the US in 2015. Owning a home was significantly higher due to the costs of monthly mortgage payments, real estate taxes, insurance, and utilities versus monthly rent costs and utilities. The analysis did not include the cost of a down payment lenders require to buy a home, which is typically 20% of the home price. Data from the US Census showed the median sales price of houses in the South were $284,000 in 2016 and $274,600 in 2015.

The Strength Lies in Multifamily Investing

In addition to high home owning costs, Marcus & Millichap reported a 4.1 rise in overall average US rents and boosted multifamily absorption in 2017; indicating the continued demand for multifamily apartments. The M&M report highlighted “Renter demand sustained by steady job & household creation,” which leaves an abundance of opportunity for investors to earn consistent and desirable returns from apartments investing. High returns are possible because local multifamily operators can offer lower prices to residents by only charging rent and utilities compared to the home-ownership premium.

How can you earn passive income from multifamily apartments? Click the image below to find out!

How to invest Button

 

Cover image courtesy of Utah Travel Guide

Why does the North Myrtle Beach Multifamily Market Provide Consistent Returns?


Myrtle beach at night

Myrtle Beach, South Carolina is not only a world-recognized travel destination, but also a premier location for business growth and development that is becoming increasingly recognized. The rapid growth of this metro is due to an increase in the retiree population & a rapidly growing business community including manufacturing and healthcare. According to the MBREDC, “From its humble roots as a small weekend getaway town for regional workers, Myrtle Beach has blossomed into a robust metropolitan area and become the business center of the Grand Strand. With its own baseball team, world renowned golf courses, and a thriving cultural scene, Myrtle Beach has everything you would expect from a big city, but with a small town price tag.” The city is expanding its reputation of being a vacation destination by pushing initiatives to focus non-seasonal industries such as aerospace, more manufacturing, and technology.

 

Myrtle Beach is the second fastest growing metro in the U.S. for the second year in a row

As the baby boomer generation continues to age, they are moving to the North Myrtle Beach area for a relaxing retirement. The number of retirees is driving job gains in the healthcare industry, making the Myrtle Beach area an ideal place for healthcare professionals to seek job opportunities to care for the aging population. In 2016 USA Today recognized Myrtle Beach in the top 5 fastest growing US cities, behind three Texas cities and The Villages, FL. While 14.5% of the nation’s adults are senior citizens, 22.3% of Myrtle Beach’s population is 65 and older. Comprised of four separate communities, Cherry Grove, Ocean Drive, Crescent Beach, and Windy Hill, North Myrtle Beach is a progressive community. The area has been named one of Google’s 50 eCities, which recognized the growth of small businesses using the internet, and named it the strongest business community in 17 fastest growing cities in USthe state.

Myrtle Beach MSA Forbes Economic Overview

  • Total Population: 433,700
  • Job Growth: 2.7%
  • Gross Metro Product: $17.7 Billion
  • Cost of Living: 0.7% Above National Average

The area has a diverse array of industries offering job opportunities for Non-retirees

Horry County offers a modern infrastructure and is home to 25 international companies. The anchor industry, Leisure and Hospitality, comprises 25% of total employment with Healthcare burgeoning. It offers a diverse mix of sites and buildings, from Class A-certified industrial parks to business and commerce centers, for  prime business locations.

The Myrtle Beach Regional Economic Development (MBREDC) has worked to bring a number of new industries to the area including the corporate headquarters’ for the manufacturing firm BauschLinnemann and international customer service call center STARTEK. Through MBREDC’s “Building North Myrtle Beach” campaign and the strategic efforts of business leaders, North Myrtle Beach is on the front lines of stimulating new and existing business growth in Horry County. Myrtle Beach is currently ranked #15 on Forbes lost cost of doing business list.  The city is also home to U.S. headquarters from companies such as Accent Manufacturing USA, Integra Fabrics, Canfor Southern Pine, as well as the manufacturing and distribution operations for Landusi Enterprises, the largest distributor of smoking pipes and tobacco in the United States. With an increase of healthcare activity, three outstanding hospital systems serve the Myrtle Beach region: Grand Strand Regional Medical Center, Tidelands Georgetown Memorial Hospital, and McLeod Loris Health. The Myrtle Beach area already offers a diverse mix of highly-skilled, reliable and experienced workers in a wide variety of fields. Myrtle Beach-Conway-North Myrtle Beach ranks in the Top 20 “Prime Workforce” Cities in 2016 by Area Development Magazine.

Convenient Location near beaches, entertainment, and transportation

The Grand Strand area offers unlimited options for recreational activities. Even with the push to broaden the Myrtle Beach area’s revenue sources, the popular vacation destination continues to offer career opportunities to those in the tourism industry.  It Consists of over 60 miles of white sandy beaches of North Carolina and South Carolina, along with the intra-coastal waterway, nature preserves, and bike trails for any season of the year. There are great restaurants, shopping, over 100 golf courses, and entertainment in an easy reach. The Carolina Country Music Festival is new to Myrtle Beach, bringing in tourists for a weekend in June with top Country artists including Keith Urban, Tim Mcgraw, Rascal Flatts and many more. In addition to a music festival, the city is home to the Grand Strand’s largest concert venue, The House of Blues, which regularly host nationally known performers. The recent expansion of Myrtle Beach International Airport will connect customers, family, and friends to the world via air, and US 501 provides easy access to I-95 and beyond in under an hour.

Lack of multifamily supply in the coastal area leaves room for opportunity

Since Myrtle Beach is historically a tourist area, commercial real estate developers have answered the demand for hotels and resorts, leaving multifamily in the dust to accommodate visitors for weekend getaways. This has mostly left multifamily construction out of the equation for years, with few even in the pipelines today according to Yardi Matrix.  The city of North Myrtle Beach’s expansion plan has resulted in successful economic growth from non-tourist attractions by bringing different industries to the area. Forbes also recognized Myrtle Beach’s growth by ranking the city #16 for The Best Places for Business And Careers in 2015. Company migration to North Myrtle beach offers non seasonal/tourist opportunities for workers, which strengthens the demand for more long term housing options.  Now the continuous stream of recent graduates entering the workforce from Coastal Carolina University and Horry Georgetown Technical College, won’t be as likely to leave in search for career opportunities. The already strong labor force continues to grow with young, knowledgeable employees who are ready to work and are in need affordable places to live.

How can you make passive income from a multifamily asset in Myrtle Beach? Contacts us at info@maccvp.com or visit our investor portal to make a free account!

Cover image courtesy of Myrtle Beach South Carolina Real Estate Experts

 

8 Reasons to Invest in Multifamily Apartments


nice apartments smaller

U.S. multi‐family real estate has generated strong investor returns over the last 20 years driven by diverse income streams, low operating costs, manageable capital expenditure requirements, and favorable debt financing terms. The movement of wealth to secondary markets was highlighted in a recent US Multifamily Strategy and & 2017 Update conducted by Yardi Matrix. Southeastern US markets stand out in the data from the Internal Revenue Services, showing Florida with the most wealth gain, followed closely by the Carolinas, Georgia, Texas, and Tennessee. Retiring Boomers and mobile Millennials have been the main contributors to population and income shifts. These demographic shifts are in the multifamily industry’s favor over the long-term, especially in the younger aged cohorts.

 

(1) Superior Rate of Return

Multifamily provides superior rates of return to stocks and other assets when you have reliable managers.

 

(2) Income/Steady Cash flows

Apartments produce rental income, which delivers steady cash flows to offset the costs of ownership, maintenance and financing costs.

 

(3) Diversified tenant base

Each property has several tenants, one or few delinquent tenants has less impact on your income.

 

(4)  Amortization

On a monthly basis as tenants make their rental payments, mortgage is paid down and investors´ equity increases.

 

(5) Appreciation

From: a) the ability to buy undervalued properties, b) ability to increase free cash flow and c) from general uptrend in  real estate prices.

 

(6) Increase the Value of the Property

By turning the property around or improving the operations, an increase in rents and occupancy adds value to the property. Added value can result in a capital gain if the property is sold, adding to the steady income that pays down the mortgage from rental payments.

 

(7) Hedge

Hedge against inflation as rents increase yearly at or above inflation. Prices of properties go up directly proportionate with inflation.

 

(8) Less Volatile than Stocks

At certain degree, multifamily is immune to the volatility of the stock market.

 

How can you invest in Multifamily Apartments? Visit our investor portal to find out how. Click the image below!

investor portal with SC open

 

The Fusion of Technoloy, Data, and Regulations in Commercial Real Estate


Wireless connection or networking concept as means of communication and social interaction

MACC Venture Partners, a North Carolina based owner/operator and active sponsor of multifamily assets throughout the Southeast, is pleased to host the third event in its 2017 panel series lineup on Wednesday May 24th 2017.  The event will be based on the topic of technological innovation and data intelligence in the commercial real estate industry, and their transformational role.  As the industry continuously adapts to new regulatory and legal changes, the intersection of regulation, data and technology will be on the forefront of industry growth. The event will be hosted at the brand new AvidXchange building in the Charlotte AvidXChange Music Factory.  MACC Venture Partners’ EVP and Managing Member, John Azar,  will be moderating the four person panel.

 REGISTER HERE

We facilitate our networking events through our Meetup.com Group, Multifamily & Apartments Investing Network (MAIN). This group was formed over a year ago and has grown to over 355 members. The group’s main focus is to educate investors who are interested in multifamily and apartment investing; as well as exchange ideas, encourage networking, provide tips and facilitate discussions on real estate LP investing. We welcome people who would like to learn about investing in commercial real estate and exchange dynamic ideas effecting our industry and community.

Meet our Panelists

Our four panelists bring a wide range of technology and real estate experience.

Jack Kern is the director of research for Yardi Systems, Inc., the leading global real estate services firm with over 5,000 employees and 40 offices globally. He previously served as head of research at Archstone-Smith, one of the largest apartment real estate investment trusts prior to its acquisition by EQR and AVB. In his previous consulting Kern

Yardi Chief Economist, Jack Kern

Yardi Chief Economist, Jack Kern

worked with portfolio investment and management clients to identify key strategies for expansion and performance improvement. As a long term research professional Kern also worked on political polling and issues consulting at the local and national level and has been active in politics ever since. Recently Kern was appointed the Kettler Scholar at George Mason University’s Center for Regional Analysis and now is a research fellow at the Center working on commercial real estate issues. He brings over 30 years of professional experience and also serves as the publisher for Commercial Property Executive and Multihousing News, two of the industry’s most powerful media

Chris Atkinson

CEO of IMS, Chris Atkinson

Chris Atkinson brings 20 years of software operational experience to his role as CEO of Investor Management Services (IMS).  Chris is responsible for the strategic vision of IMS and driving operational excellence during a stage of hyper-growth.  Prior to joining IMS, Chris was CEO of KnowledgeTree where he guided the company to explosive revenue growth and award-winning product expansion. Prior to KnowledgeTree, Chris served as Executive Vice President and General Manager of StrikeIron, where he was responsible for the day-to-day management of the organization. In his tenure, StrikeIron averaged 68% CAGR and significant product innovation.  The 440% revenue growth from 2011 to mid-2014 led to StrikeIron’s successful acquisition by Informatica. Chris’ software leadership experience includes executive management, general management, sales, marketing, and corporate development roles at Fortune 100 and venture-backed startups.

Senior Manager at Elliot Davis Decosimo, Bobbi Jo Lazarus

Senior Manager at Elliot Davis Decosimo, Bobbi Jo Lazarus

Bobbi Jo Lazarus has more than 11 years of public accounting experience, specializing in tax services. She focuses on providing tax planning and compliance services specifically in the partnership, and individual income tax return reporting areas with a specialization in the real estate industry. Additionally, Bobbi Jo has been involved with several partnership allocations, cancellation of debt and basis issues, as well as Section 179D energy efficiency and cost segregation studies. Bobbi Jo is also part of the Commercial Real Estate Women (CREW)–Charlotte Chapter-Past National Delegate. She was named Charlotte Business Journal 40 under 40 award recipient in 2016 and Mecklenburg Times 50 Most Influential Women Award Recipient in 2015.

Chris Elmore

Director of Product Strategy at AvidXChange, Chris Elmore

Chris Elmore is author of 8 books and over 600 articles, and has learned that experience is one of the best teachers. Chris started his career in finance and human resources and has helped build several startup technology companies like early dotcoms MTS (1996) and carrershop.com (1998). His current venture with AvidXchange has given him the corporate ride of his life. As AvidXchange’s first employee, in 2000, Chris has played roles in support, training, testing, development, project management, consulting, sales, marketing, and management. Chris is a teacher leading efforts at AvidXchange’s internal university training new employees, acquisitions and partners as well as being an Adjunct Professor in the Department of Computer Science at UNC Charlotte. Chris also serves as an adviser to four Charlotte NC based startups, Radin Technologies, 2ULaundry, Advocations and Griffin Tattoos. Chris lives in Clover, SC where a wife, four kids and business keeps him very busy.

 

Attend our Panel Discussion: The Fusion of Techonology, Data, and Regulations in Commercial Real Estate

Date: May 24th | Time: 6pm to 9pm | Location: AvidXChange | Address: TBD

REGISTER HERE

Also check out our MAIN Fireside Chat with Tony Azar to see photos from our sell out event in February!

Perspectives from industry leaders on the new landscape of CRE in the Carolinas & Beyond


We are hosting an all-star panel at our upcoming Multifamily & Apartments Investing Network (MAIN) event on April 6th. Leaders of NAIOP & ULI  Charlotte chapters will be discussing the state of the local and regional commercial real estate market. The ticket includes admission, beer, and custom pizzas. Our sponsors, Granite Falls Brewing and Fuel Pizza on South Blvd in Carlotte with be provide the craft beer and custom pizzas.

BUY TICKETS HERE

National Association for Industrial and Office Parks (NAIOP)  

NAIOP CLT

Since 1967, NAIOP, the Commercial Real Estate Development Association, has become the leading organization for developers, owners and investors of office, industrial, retail and mixed-use real estate. NAIOP comprises 18,000+ members and provides strong advocacy, education and business opportunities through a powerful North American network.

NAIOP advocates for effective legislation on behalf of its members. As the recognized leader for commercial real estate, NAIOP furthers the industry’s public policy agenda by actively working with elected officials on legislative issues affecting its welfare.

Urban Land Institute (ULI)Naiop Rob Cochran

Urban Land Institute is a 501(c) (3) nonprofit research and education organization supported by its members.

Founded in 1936, we now have almost 40,000 members worldwide, representing the entire spectrum of land use and real estate development disciplines working in private enterprise and public service.

A multidisciplinary real estate forum, ULI facilitates an open exchange of ideas, information, and experience among industry leaders and policy makers dedicated to creating better places.


How can you network with leaders of these national and global organizations?

Our three panelists who will be speaking at our upcoming MAIN panel discussion are heavily involved in NAIOP & ULI.

Brendan Pierce serves on the board of directors of NAIOP Charlotte as  President. He is Director of Office Development, Acquisitions and Leasing at the Keith Corporation(TKC) and has over fifteen years of experience in the commercial real estate industry. He is responsible for sourcing development and acquisition ventures throughout the United States.  In his career, Brendan has developed and acquired over 1.2 million square feet of commercial real estate valued at $550 million.

Rob Cochran is the current Chair of the Charlotte District Council of ULI. He is also a senior managing director of Cushman Just speakers for event blog& Wakefield where he is the leader of the Charlotte Capital Markets team and has more than 35 years of experience in the Carolinas real estate market. For the past ten years, he has focused on investment sales in the Carolinas.  He is a past president of the Charlotte Region Commercial Board of Realtors and the boards of Communities in Schools, Ronald McDonald House, and Children & Family Services Center.

Theresa Salmen is heavily involved in the commercial real estate network in Charlotte. She serves as Executive Director of NAIOP Charlotte and Executive Director of ULI Charlotte. Theresa Started TH Mgmt., Inc. in 1991, an association management company (AMC).  She has earned her Certified Meeting Professional (CMP) designation and was recognized by the Charlotte Business Journal as one of the top Women in Business for 2005. She is a past president of the Association Executives of North Carolina Charlotte Chapter and previously served as a board member for the AMC Institute (trade organization for the Association Management Company industry).

 

Attend our Panel Discussion: Perspectives on the New Landscape of CRE in the Carolinas & Beyond

Date: April 6th | Time: 6pm to 9pm | Location: C3 Labs | Address: 2525 Distribution St, Charlotte, NC 28203

BUY TICKETS HERE

 

Also check out our MAIN Fireside Chat with Tony Azar to see photos from our sell out event last month!


Upcoming Charlotte events:

NAIOP is hosting its NC statewide conference on March 30-31 in Pinehurst, NC. Find registration information on the NAIOP Charlotte website under the upcoming events tab. The conference is open to members and industry guests.

ULI  is hosting its 4th annual Carolinas’ Meeting on March 23 and 24 at the Westin Charlotte. It is expected to draw more than 600 attendees from across the region. Find more information about the event at the ULI Charlotte website under the events tab. The event is open to members and nonmembers.

Whit background Shout OUT

 

 

First event of 2017 was a huge success!


Fireside Chat with Tony Azar Draws Diverse Multifamily Audience in a Sold Out Event.

Our firm manages a Meetup.com group focused on education and collaboration as well as community for investors and stakeholders who are interested in multifamily and apartment investing. The group is continuously growing and has reached over 330 people. Our goal is to allow people to cross pollinate their interests and expertise, as well as facilitate discussions on MultiFamily Limited Partnership investing and commercial real estate in general.

The first event of the year was on February 23rd, 2017 at Advent Coworking space in Plaza Midwood, Charlotte. The room was filled with over 50 people who were able to network among a diverse group of like minded peers. Our CEO, Tony Azar, was the speaker at our first event. He discussed his journey from single family flipping to owning and operating over 5,000 commercial units in the US. We were joined that evening by other local business executives outside of the CRE industry such as Jeff Brokaw (StartupGrindCharlotte) and Chris Elmore (AvidXchange)

Click here to find out about our next event

Collage of Fireside Chat for Blog

MACC Venture Partners Inks $100 Million Agreement With Florida Investment Group IBS Investment Bank


Charlotte, NC, February 15th 2017— Gastonia based real estate private equity firm MACC Venture Partners (a subsidiary of Capstone Multifamily Group) today announced its $100MM agreement with Ft. Lauderdale based private equity investment group IBS Investment Bank for the acquisition, management and disposition of multifamily assets throughout the Southeastern United States.

The new agreement will leverage IBS, N.A.’s institutional investment management experience to launch MACC’s first close-ended fund, the $100MM MACCVP’s Capital Equity Fund, LLC (the “Fund”). The Fund will fuel the group’s purchase of Class ‘B’ multifamily assets which are operationally opportunistic for MACCVP’s property management prowess.  “We believe overall conditions for multifamily are still very positive; however, there are significant differences in the fundamental drivers and outlook among different Southeastern metro areas. Job growth, supply growth, affordability and submarket concentration drive our strategy decisions and due diligence. This process resonates deeply in our acquisitions and investments and is reflected in our past performance and track record”, said MACCVP Managing Director, Tony Azar.

Jason Jackson, IBS Investment Bank chief executive and Forbes Finance Council member cites MACCVP’s personalized, high-touch culture as the driver which led him into the agreement. “The corporate culture between MACCVP and IBS, N.A. is synonymous in that we have remained consistent to our employees and investors throughout economic cycles by sticking to the fundamentals. This partnership delivers us a competitive edge in acquiring stable assets in high-barrier to entry markets” IBS, N.A. Chairman and Chief Investment Officer Jason Jackson told reporters.

About MACC Venture Partners

MACC Venture Partners, LLC is an investor and multifamily operator which pursues capital preservation and appreciation through the acquisition and management of stabilized assets in high growth markets.  MACCVP is vertically integrated to manage all aspects of operations including, but is not limited to acquisitions, asset management, construction management, brokerage and collections. For more information, visit

www.maccvp.com

About IBS Investment Bank

IBS Investment Bank a division of Institutional Banking Services, North America CORP (IBS, NA®) is a privately held institutional banking firm dedicated to providing investment management and advisory, corporate finance, real estate finance, acquisition and management, and human capital services to its institutional clients. For more information visit www.myinstitutionalbanking.com or www.ibsinvestmentbank.com or

www.IBSREICO.com

IBS and MACC Joint Cover Photo

MACC Venture Partners CEO in the News


Years of expertise in the market have given us a competitive advantage to win the limited amount of value-add deals that are currently available. We will also have the ability to leverage readily available equity from our first Capital Equity Fund, that will be launching Q1 2017, to invest in properties that offer the highest projected returns to our investors.

Find insights from our CEO, Tony Azar in this article published by the Commercial Property Exective.CPE Multifam South with CPE logo