Throughout 2018, Rhode Island’s single family home market was characterized by demand outpacing supply. In May 2018, the Rhode Island Association of Realtors reported the state’s median single family home price reached $275,000, a 10% increase over the previous May. And, late 2018 reports showed home values were still rising, particularly on the East Side of Providence. With residents left to explore other housing options – and with a continued statewide focus on economic development and business expansions on the horizon – 2019 looks to be another strong year for multifamily investment real estate in Rhode Island.
Between the launch of the Hartford Line and welcoming new businesses to downtown, 2018 has been a strong year for the Hartford submarket. Appealing to both young professionals and empty nesters who crave walkable communities with easy access to public transit, highways and retail, Hartford has become an increasingly popular area to live, thanks in part to a wide array of cultural amenities and a citywide focus on improved walkability.
Did you know that 22 million people in the U.S. live in manufactured homes? Manufactured housing ranks among the country’s largest sources of unsubsidized affordable housing. Boasting lower costs per unit, less tenant turnover and decreased competition among investors, manufactured housing can offer investors viable investment opportunities. As multifamily investors seek avenues for diversifying their portfolios, manufactured housing (otherwise referred to as trailer parks) is one often overlooked opportunity for achieving this objective.
Connecticut, Massachusetts, New York and Rhode Island are all home to Qualified Opportunity Zones (QOZ) where investors can benefit from tax incentives on qualifying investments. QOZs, which are designated by a state’s governor for a 10-year term and determined based upon low-income census tracts, are often home to land prime for development and existing assets prime for adaptive reuse.
Named to the prestigious Inc. 5000 list as one of the fastest growing real estate firms in the Northeast, 2016 was a banner year for Northeast Private Client Group (Northeast PCG). With investment properties in Boston and New York City transacting at record highs, investors were driven to explore opportunities in neighboring submarkets where there was opportunity to add value, reposition assets and maximize returns.
As ecommerce continues to grow, brick-and-mortar retailers are feeling the hit. Reports indicate store closings have hit the worst level since 2010, due in part to bankruptcy filings by major retailers, and an estimated 200 malls have closed down in the past two years. Bloomberg Intelligence reports there were only seven weeks from Q1-2015 to Q1-2016 where retail store traffic rose year-over-year. It is estimated that for retail stores in North America, per-square-foot sales have declined $35 per square foot from 2006 to 2015 ($200 to $165).
Operational improvements offer building owners the opportunity to improve cash flow by increasing efficiency. For value-add investors in particular, who are often purchasing undervalued Class-B and Class-C assets with the goal of making smart capital improvements to maximize returns, identifying ways to make a building run more efficiently is a critical first step. When considering how to improve the efficiency of your real estate investment properties, consider these key areas.
Edward Jordan, JD, CCIM, and Bradley Balletto also recognized by CoStar as Top Sales Brokers
Owners of retail investment properties often look for ways to make their properties more attractive to larger, long-term credit tenants – think CVS, Walgreens, McDonald’s, Chase Bank, etc..