“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “
Not counting portfolio deals, investors bought and sold $1.1 billion in student housing properties in the first quarter of 2016, according to real estate services firm CBRE.
Bendix Anderson | May 08, 2017
Commercial real estate investors are increasingly keeping their wallets in their pockets, waiting to see where interest rates will go, for prices to come down and for more properties to come on the market. That’s happening in almost every sector, except for student housing.
Sales of student housing properties beat the trend in the rest of the market in the first quarter. If investors keep buying and selling student housing at this rate, they will match the record-setting acquisition volume of 2016, despite a long list of larger market challenges that could have slowed the pace of transactions.
“Single-asset transactions are coming in at a higher pace than in many previous periods,” says Jim Costello, senior vice president with Real Capital Analytics (RCA), a New York City-based research firm.
Not counting portfolio deals, investors bought and sold $1.1 billion in student housing properties in the first quarter of 2016, according to real estate services firm CBRE. That’s down slightly from $1.14 billion in the first quarter of 2016.
“It’s almost exactly the same as last year,” says Jaclyn Fitts, senior vice president of national student housing for CBRE.
The rest of the investment sales market has been very slow so far this year compared to 2016. The volume of apartment properties of all types bought and sold in January and February was less than half compared to the year before. Uncertainty about interest rates and federal policy has weighed on the markets. “People sort of sat on the sidelines,” says Fitts.
All of these factors also play a role in transactions involving student housing. In addition, relatively few properties are now available for investors to buy. “We are currently seeing a real lack of product on the market,” says Fitts.
That’s in part because after so many transactions, there aren’t as many potential sellers left.
“For three years the transaction volume has set records,” says David Borsos, vice president of capital markets with NMHC, an industry group. In 2014, $3.5 billion in student housing sales took place, followed by $6 billion in 2015 and $10 billion in 2016.
But sales of student housing properties are still at or near last year’s levels because new investors continue bid for assets, off-setting some of the uncertainty and the shortage of properties to buy.
“Interest in student housing has been growing steadily, as more investors look towards less traditional asset classes within commercial real estate. Much more institutional capital has entered the student housing space as of late,” says Ethan Vaisman, real estate economist with research firm CoStar.
Portfolios sales are more volatile, but the student housing sector is still outperforming the rest of the market and may even be on track to match last year’s volume on portfolio deals. Already in 2017, the Scion Group, a student housing investor, and its joint venture partners have acquired a $1.6 billion portfolio of student housing properties. Another deal like that could make this year comparable to 2016, when two large portfolios traded.
LIST OF ECONOMIC DEVELOPMENT PROJECTS IN PINAL COUNTY, REVISED 2-14-17
FROM ME:
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
List of Economic Development Projects in Pinal County, Revised 2-14-17
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
4.
Reasons to Consider me for Commercial Referrals – I have the Knowledge and Experience
#
Click here to View My Listings and Profile
#
Click here to find out what is a CCIM:
#
Click here to view my website:
#
Click her to join my mailing list :
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
2016 Official Arizona Visitors Guide
1
Timeline of Phoenix, Arizona history
2
3
Facts of Arizona – year 1848 to 2013
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
1-520-975-5207
Check out my professional profile and connect with me on LinkedIn.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Click here for Map of Apartments for Sale (10+units)
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
Direct: 520-975-5207
Fax: 602-865-7461
Reasons to Consider me for Commercial Referrals
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
- P
- Investment Real Estate
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.