Q3 2017 - Multifamily Market Update Newsletter

MULTIFAMILY INVESTMENT SALES ANALYSIS | SOUTH FLORIDA

MU LT I FAM I LY I NVE S TMENT | SOUTH F LOR I DA T E AM

GRAPH 1 :: South Florida Historical Price/Unit Versus Price/SF SOUTH FLORIDA HISTORICAL PRICE/UNIT VERSUS PRICE /SF

$225,000

$260

Miami-Dade

$240

$200,000

$220

Broward

$175,000

$200

Palm Beach

$180

$150,000

$160

$125,000

$140

$120

$100,000

Price Per SF

Price per Unit

$100

$75,000

$80

$60

$50,000

$40

$25,000

$20

$0

$0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017 (YTD)

* +$1 million multifamily sales

Average per Unit

Average Per SF

GRAPH 2 :: South Florida Historical Transaction Volume Versus Number of Transactions SOUTH FLORIDA HISTORICAL TRANSACTION VOLUME VERSUS NUMBER OF TRANSACTIONS

$5.0

375

Miami-Dade

$2.0 Dollar Volume Billions $2.5 $3.0 $3.5 $4.0 $4.5

Broward

300

Palm Beach

225

150

Number of Transactions

$1.5

$1.0

75

$0.5

$0.0

0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017 (YTD)

* +$1 million multifamily sales

Dollar Volume

Number of Transactions

WHERE MULTIFAMILY OPPORTUNITIES EXIST • Value Add opportunites in submarkets with +/- 20-Year delivery gap in new construction. • Affordable Housing remains drastically underserved. Understand the House tax reform bill and the possible elimination of private-activity bonds. This could have negative consequences for affordable development • Price per pound: Look for assets below replacement cost. Go beyond the in place numbers. Attractive debt options can faciliate operational and/or revenue enhancements. • Suburban, Class A School Districts, Larger Units, More Playground & Dog Park, Less Business Center • Brightlineand New Tri-Rail Station in Miami, South Broward, and to Orlando • Silver Tsunami: Senior communities near affluent single-family markets and walkability • Income producing development sites for multifamily and condo

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