Focusing on the Fundamentals Multifamily Real Estate.

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Focusing on the Fundamentals Presented by: Marcus Kurschat, President Multifamily Real Estate

Transcript of Focusing on the Fundamentals Multifamily Real Estate.

Focusing on the FundamentalsPresented by:

Marcus Kurschat, President

Multifamily Real Estate

Location, Location, Location

3 Fundamentals for Property location:1.High Population Growth2.Strong Employment Growth3.Recovering Real Estate Markets

Ideal locations encompass all three fundamentals.

High Population Growth

Source: United States Census Bureau – Forbes.com – “Population Growth is Back in Clobbered Metros: Phoenix, Orlando, and Las Vegas” (March 15, 2013 )

Fastest Growing Large U.S Cities*

# City % Population Change,2011-2012

1 Austin, TX 3.0

2 Orlando, FL 2.2

3 Raleigh, NC 2.2

4 Houston, TX 2.1

5 Dallas-Fort Worth, TX 2.0

6 San Antonio, TX 1.9

7 Phoenix, AZ 1.8

8 Denver, CO 1.8

9 Charlotte, NC 1.7

10 Nashville, TN 1.7

Highlighted Cities are located in Sunbelt States.*Among cities with metropolitan areas with at least one million population.

High Job GrowthU.S JOB GROWTH RANKINGS (Top 5)*

Total Nonfarm Job Growth: April 2013 over April 2012

State Metro Area Rank 2013 % Growth Rank 2012 % Growth

Texas Houston-Baytown-Sugar Land 1 4.17% 1 3.32%

Texas Dallas-Fort Worth-Arlington 2 3.50% 3 2.54%

Florida Tampa-St. Petersburg-Clearwater 3 3.05% 5 2.34%

Colorado Denver-Aurora 4 2.70% 6 2.29%

Arizona Phoenix-Mesa-Scottsdale 5 2.43% 11 1.93%

Highlighted Metro Areas are located in Sunbelt States. *Metropolitan Statistical Areas (MSA's) with over 1,000,000 jobs

Source: Job Growth Update, W. P. Carey School of Business, Arizona State University (April 2013 Data Released May 2013)

Recovering Real Estate Markets

*Based on a review of the median home value of the 30 largest housing markets measured by Zillow Inc. 24/7 Wall St. identified the 10 housing markets that have risen the most from the first quarter of 2012 to the first quarter of 2013.

Highlighted Cities are located in Sunbelt States.

10 Best Housing Markets Right Now

Rank City Change in home value (2012)

Current home value

Forecast change in home value (2013)

1 Phoenix, AZ 24.0% $165,600 10.6%

2 Las Vegas, NV 22.3% $138,800 7.5%

3 San Jose, CA 22.1% $676,100 9.7%

4 San Francisco, CA 21.4% $563,200 10.5%

5 Sacramento, CA 20.1% $241,600 15.6%

6 San Diego, CA 17.1% $396,800 8.8%

7 Riverside, CA 16.3% $210,100 17.2%

8 Los Angeles, CA 14.9% $439,400 11.1%

9 Detroit, MI 13.1% $84,700 4.4%

10 Denver, CO 13.1% $234,200 3.1%

Multifamily Real Estate – CORE STRATEGY

Advantages of Multifamily Real Estate?1. Stable Income2. ‘Value Added’ Opportunities3. High Demand