DES MOINES - Wesley Foundation at Tennessee Tech · DES MOINES Q4 2016 | Multifamily RECENT SALES...
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Accelerating success. Research & Forecast Report DES MOINES Q4 2016 | Multifamily RECENT SALES Source: AXIOMetrics. RCA, CoStar Market Survey Results and Forecasts Sequential Month Annual 1Q16 2Q16 3Q16 4Q16 Dec-16 2014 2015 2016 2017F 2018F 2019F 2020F Effective Rent Per Unit $895 $914 $925 $912 $907 $886 $889 $912 $928 $955 $987 $1,014 Per Sq. Ft $0.98 $1.00 $1.01 $1.00 $0.99 $0.97 $0.97 $1.00 $1.02 $1.05 $1.08 $1.11 Effective Rent Growth - Annually 1.0% 2.9% 4.1% 2.0% 1.9% 1.6% 0.3% 2.5% 1.8% 2.9% 3.4% 2.7% Effective Rent Growth - Quarterly 0.2% 2.1% 1.2% -1.4% Occupancy Rate 95.1% 96.4% 96.1% 94.6% 94.3% 95.3% 95.0% 95.6% 95.3% 95.7% 95.9% 95.2% Occupancy Change - Annually 0.5% 0.9% 0.6% 0.2% 0.2% -0.1% -0.3% 0.6% -0.2% 0.4% 0.1% -0.7% Occupancy Change - Quarterly 0.8% 1.3% -0.2% -1.6% Economic Concessions Concession Value $-10.56 $-3.77 $-5.62 $-16.59 $-22.38 $-12.61 $-13.11 As a % of Asking Rent -1.1% -0.4% -0.6% -1.8% -2.4% -1.4% -1.5% Date Property Name Address City Units Year Built Price in $ $/Units Oct-16 Riverview Oaks 1420 Pennsylvania Ave Des Moines 78 1968 2,940,000 37,692 Sep-16 Park Forest 2101 E Virginia Des Moines 144 1979 6,550,000 45,486 Sep-16 Watermark at Jordan Creek 6455 Galleria Dr West Des Moines 176 2014 26,500,000 150,568 Aug-16 University Mills 2124 W 27th St Cedar Falls 121 2001 16,400,000 135,537 Apr-16 The Flats 3000 University Ave West Des Moines 331 1973 / 2016 9,985,000 30,166 Mar-16 The Grove Ames/Copper Beech Ames 1407 S Grand Ave Ames 425 2011 48,934,995 115,141 Mar-16 Hillcrest Park 9614 University Ave Cedar Falls 132 2001 18,250,000 138,258
Transcript of DES MOINES - Wesley Foundation at Tennessee Tech · DES MOINES Q4 2016 | Multifamily RECENT SALES...
Accelerating success.
Research & Forecast Report
DES MOINESQ4 2016 | Multifamily
RECENT SALES
Source: AXIOMetrics. RCA, CoStar
Market Survey Results and ForecastsSequential Month Annual
1Q16 2Q16 3Q16 4Q16 Dec-16 2014 2015 2016 2017F 2018F 2019F 2020F
Effective Rent Per Unit $895 $914 $925 $912 $907 $886 $889 $912 $928 $955 $987 $1,014
Per Sq. Ft $0.98 $1.00 $1.01 $1.00 $0.99 $0.97 $0.97 $1.00 $1.02 $1.05 $1.08 $1.11
Effective Rent Growth - Annually 1.0% 2.9% 4.1% 2.0% 1.9% 1.6% 0.3% 2.5% 1.8% 2.9% 3.4% 2.7%
Effective Rent Growth - Quarterly 0.2% 2.1% 1.2% -1.4%
Occupancy Rate 95.1% 96.4% 96.1% 94.6% 94.3% 95.3% 95.0% 95.6% 95.3% 95.7% 95.9% 95.2%
Occupancy Change - Annually 0.5% 0.9% 0.6% 0.2% 0.2% -0.1% -0.3% 0.6% -0.2% 0.4% 0.1% -0.7%
Occupancy Change - Quarterly 0.8% 1.3% -0.2% -1.6%
Economic Concessions Concession Value $-10.56 $-3.77 $-5.62 $-16.59 $-22.38 $-12.61 $-13.11
As a % of Asking Rent -1.1% -0.4% -0.6% -1.8% -2.4% -1.4% -1.5%
Date Property Name Address City Units Year Built Price in $ $/Units
Oct-16 Riverview Oaks 1420 Pennsylvania Ave Des Moines 78 1968 2,940,000 37,692
Sep-16 Park Forest 2101 E Virginia Des Moines 144 1979 6,550,000 45,486
Sep-16 Watermark at Jordan Creek 6455 Galleria Dr West Des Moines 176 2014 26,500,000 150,568
Aug-16 University Mills 2124 W 27th St Cedar Falls 121 2001 16,400,000 135,537
Apr-16 The Flats 3000 University Ave West Des Moines 331 1973 / 2016 9,985,000 30,166
Mar-16 The Grove Ames/Copper Beech Ames 1407 S Grand Ave Ames 425 2011 48,934,995 115,141
Mar-16 Hillcrest Park 9614 University Ave Cedar Falls 132 2001 18,250,000 138,258
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 2www.ColliersMultifamilyEast.com
SUPPLY AND DEMANDAccording to the Bureau of Labor Statistics, job growth in Des Moines-West Des Moines, IA Metro Area was 1.1% in November 2016, reflecting 3,900 jobs added during a 12-month period.
Axiometrics forecasts Des Moines-West Des Moines, IA Metro Area’s job growth to be 1.3% in 2017, with 4,425 jobs added. Job growth is expected to average 1.6% from 2018 to 2020, with an average of 5,988 jobs added each year.
On the supply side, permits for 2,876 multifamily units were issued in the 12 months ending in November 2016, up 1,066 units from the prior year’s sum. In terms of total residential housing, 6,658 units were permitted in the 12 months ending November 2016, an increase of 1,214 units from the prior year’s total.
Multifamily Absorption and Supply
Annual 4Q16 Annual Forecast
2013 2014 2015 Market National 2016 2017F 2018F 2019F 2020F
Total Units Absorbed 454 1,730 1,036 2,225 336,518 2,225 1,596 1,402 557 286
New Supply 1,206 1,330 1,843 1,514 365,032 1,514 2,014 1,000 700 782
Inventory Growth 1.8% 2.3% 4.1% 2.5% 1.5% 2.5% 4.1% 2.5% 1.2% 1.4%
Market Employment and Permitting
Annual November-16 Annual Forecast
2013 2014 2015 Market National 2016 2017F 2018F 2019F 2020F
Employment (000s) 335.3 343.5 348.8 356.3 146,399.0 353.6 358.1 362.8 369.3 376.0
Job Gain (000s) 8.4 8.2 5.2 3.9 2,277.0 4.9 4.4 4.8 6.5 6.7
Job Growth (%) 2.6% 2.4% 1.5% 1.1% 1.6% 1.4% 1.3% 1.3% 1.8% 1.8%
Total Residential Permitting 4,926 4,414 5,444 6,191 1,087,532 6,952 4,940 3,574 3,819 4,228
Relative Change 18.3% -10.4% 23.3% 26.3% 1.9% 27.7% -28.9% -27.7% 6.9% 10.7%
Single Family Units Permitted 3,336 2,955 3,495 3,407 686,576
Relative Change 18.8% -11.4% 18.3% 4.1% 8.7%
Multifamily Units Permitted 1,480 1,398 1,810 2,738 371,009
Relative Change 10.3% -5.5% 29.5% 84.4% -8.6%
Multifamily as a % of Total 30.0% 31.7% 33.2% 44.2% 34.1%
Demand/Supply Ratio Job Gain / Total Residential Units Permitted 2.0 1.7 1.2 0.8 2.1 0.9 0.6 1.0 1.8 1.8
Job Gain / Single Family Units Permitted 3.0 2.5 1.8 1.2 3.6
Job Gain / Multifamily Units Permitted 6.3 5.5 3.8 2.6 5.6
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 3www.ColliersMultifamilyEast.com
PIPELINE MAP
“We were extremely pleased with the East Region team and its ability to attract an incredible amount of interest in our 3 assets. The number of offers received and the end results exceeded our expectations. They have a talented group who was a pleasure to work with. Their performance stands out against any of the groups we work with nationally.”
Nels Billsten, Vice President | CORE Realty Holding Management
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COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 4www.ColliersMultifamilyEast.com
PIPELINE DETAIL# Name Status Owner Address Market Units1 Sierra Pointe Apartments Lease Up R&R Realty Marketing Group 7171 Woodland Ave Dallas County 1272 Building 2 Lease Up Hubbell Realty Company 550 SW 9th St Downtown Des Moines 1833 Autumn Ridge Lease Up Moulton Real Estate 1165 SE Olson Dr Dallas County 1284 Windsor Village Condos - Phase I Lease Up Caliber Iowa 1227 NE Windsor Dr Outer Ankeny/Saylorville 965 Cadence Apartments - Phase I Lease Up Hubbell Realty Company 6300 Merle Hay Rd Outer West Des Moines/Urb 926 City Square Lofts Lease Up Hansen Real Estate Services 210 E Walnut St East Village 1247 The Edge at Gray's Landing Lease Up Sherman Associates, Inc. 406 SW 9th St Downtown Des Moines 908 Lake Shore Apartments Phase II Under Construction BBK Rentals, Inc. 213 NE Hayes Dr Outer Ankeny/Saylorville 1549 Bici Flats Under Construction Ralph Gilotti 1405 SE 1st St McKinley School-Columbus 15410 The Verve Under Construction Hubbell Realty Co 700 E 4th St East Village 12311 Harbach Lofts Under Construction Encore Iowa Property
Management300 SW 5th St Downtown Des Moines 103
12 The Nexus at Gray's Landing Under Construction Sherman Associates, Inc. 415 SW 11th St Downtown Des Moines 14213 Campus Town Senior Housing Under Construction FBL Financial Group, Inc. 1225 SW 28th St Outer Ankeny/Saylorville 13414 Residences at 62W Under Construction R&R Realty Marketing Group 6000 NW 62nd Ave Outer West Des Moines/Urb 13715 BelleMeade Apartments Phase II Under Construction The Richdale Group 204 S 64th St Dallas County 14616 Linden Oaks Under Construction Redwood Living 400 Adventureland Dr Outer SE Des Moines N 9817 The Cove at Kettlestone Under Construction Caliber Iowa 1272 SE Bishop Dr Dallas County 13118 Jordan West Apartments Under Construction Commercial Investment
Properties360 Bridgewood Dr Dallas County 180
19 Cascades at Jordan Creek - Phase II Under Construction Perry Reid Properties 8350 Cascade Ave Dallas County 14620 Fort Des Moines Under Construction Blackbird Investments 6700 Chaffee Rd Outer SE Des Moines S 14221 Fourth and Court Under Construction City of Des Moines 420 Court Ave Downtown Des Moines 8122 East Village Apartments Under Construction Tim Rypma 219 E Grand Ave East Village 9823 Jackson Crossing Under Construction Christensen Development 100-150 Jackson Ave McKinley School-Columbus 17224 The Cove at Prairie Trail Phase II Under Construction Caliber Iowa 1918 SE Lesina Ln Outer Ankeny/Saylorville 7625 The Equitable Lofts Under Construction Foutch Brothers 604 Locust St Downtown Des Moines 14626 R&T Lofts Under Construction TWG Development 715 Locust St Downtown Des Moines 16227 Cadence Apartments - Phase II Under Construction Hubbell Realty Company 6300 Merle Hay Rd Outer West Des Moines/Urb 10328 Carman Estates Under Construction Jerry's Homes Inc 2314 E Porter Ave Easter Lake Area 9629 Eagle View Lofts Under Construction Hansen Real Estate Services 511 Shaw St East Village 12030 Aspire Apartments Phase II Under Construction Signature Commercial Real
Estate6950 Stagecoach Dr Dallas County 176
31 Havenwood Under Construction One Source Services, LLC. 1250 SW State St Outer Ankeny/Saylorville 10632 Phase II Building 5 Under Construction Hubbell Realty Company 520 SW 9th St Downtown Des Moines 15633 2301 Ingersoll Ave Under Construction Roers Investments 2301 Ingersoll Ave Woodland Heights 16234 Village of Ponderosa Proposed Evercore Companies LLC Bluestem Circle &
CrescenOuter West Des Moines/Urb 500
35 619 Grand Ave Proposed Nelson Construction Services 619 Grand Ave Downtown Des Moines 17536 The Fifth Proposed Real Estate Division City Of Des
Moines422 Walnut St Downtown Des Moines 200
Total Units 5,159
Source: CoStar
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 5www.ColliersMultifamilyEast.com
WHO WE AREOne of the largest and most
experienced teams of multifamily
specialists in the industry
Units sold since 2011
33,500MORE THAN
Group gross transaction value in since 2011
$2.3B
Dedicated Multifamily Professionals & Advisors
50MORE THAN
Expansive geographic footprint
20COVERING OVER
STATES
WE CAN HELPAs an investor in multifamily properties, you need a firm that provides experience, broad reach and the ability to market an asset no matter how challenging the economic environment. You need a team that specializes in your market you need The East Region Multifamily Advisory Group.
Colliers International has one of the largest and most experienced teams in the industry, strategically located in key markets throughout North America. Our combination of market dominance, expertise, and singular focus, make us uniquely successful in helping our clients achieve their disposition objectives.
How are we able to bring together the skills and tools necessary to complete challenging assignments? Our East Region Multifamily Advisory Group is connected by purpose and focus. Our team is dedicated to sharing information on market opportunities, capital sources and buyers/sellers to achieve the best results for our clients.
COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 6www.ColliersMultifamilyEast.com
www.ColliersMultifamilyEast.com
To learn more, scan this with a QR code reader or visit:
AT YOUR SERVICE
Gabe TovarASSOCIATE | EAST REGION
[email protected] +1 816 556 1161
Will MathewsPRINCIPAL | EAST REGION
INSTITUTIONAL CLIENT GROUP
[email protected] +1 404 877 9285
Craig BrownASSOCIATE | EAST REGION
[email protected] +1 404 978 2336
Bob Galamba, CCIM, SIOR
SENIOR VICE PRESIDENT | EAST REGION
[email protected] +1 816 556 1152
