Category Archives: Investing

Boston Capital gears up for $350 million of multifamily acquisitions

Boston Capital Real Estate Partners, the third largest apartment owner in the U.S., just closed the Boston Capital Income and Value U.S. Apartment Fund. The fund has enough juice to add $350 million of apartments to Boston Capital’s multifamily empire.

BCIV is a Luxembourg-based fund vehicle with a stable of investors ranging from financial institutions and insurance companies to pension funds and family offices.

The BCIV strategy is value-add all the way. BCRE is sniffing out Class-B apartments worthy of renovation in primary and secondary markets across the U.S.

BCIV is the latest iteration in a series of funds BCRE has geared for value-add acquisitions and renovations. BCRE’s appetite for value-add product is indicative of continued demand for value-add deals across the entire U.S. multifamily market. Investors have not let up on their appetite and are still showing strong preference for this type of deal. Thus, competition in the value-add market is getting tighter and tighter. Most, if not all, of the obvious value-add opportunities have already been snatched up.

These days, it takes a much more discerning investor to find the diamonds in the rough. Nevertheless, BCRE is excited to throw some fresh capital in the value-add ring.

“We are excited to close BCIV as we continue to innovate the structures and strategies of our apartment investment offerings. With support from our institutional investment partners, BCIV locates and extracts untapped value from existing multifamily properties in infill suburban ring locations in primary and secondary metropolitan areas across the U.S.,” BCRE Managing Director Mark Dunne said in a statement.

So far, the investment fund has bagged four assets in four states. One each in Dallas, Atlanta, Phoenix and Charlotte which brings the fund’s unit total to 1,330 units with more to come in the near future. According to its release, BCRE intends to add two to three more properties to the BCIV portfolio by early 2019.

“With four high-performing assets already in the fund, we plan to close out the investment phase within the next nine to 12 months and begin marketing the next fund in this series by early next year,” Dunne added.

Article source: https://www.housingwire.com/articles/46090-boston-capital-gears-up-for-350-million-of-multifamily-acquisitions

WhyHotel adds Cathy Ross to board, expands in D.C.

Symbiotic alternative lodging service WhyHotel added Exclusive Resorts CEO Cathy Ross to its board and is launching a new, 95-unit pilot site in Washington, D.C.’s NoMa area.

WhyHotel is still in its fledgling stages building up proof of concept. Recently, the young company received $3.94 million in seed funding which has allowed the it to set up new pop-up locations and build out its leadership team.

Ross has 35 years of experience in consumer-facing companies, most of which have been in the hospitality space. Her expertise will help the young company as it continues to expand into new markets. 

“I am excited to bring my background in real estate development, asset management, finance, manufacturing and hospitality, to the WhyHotel brand. They have a fascinating concept that is a win-win for both the real estate developer and end user,” she said in a statement.

The D.C. location will set up shop inside of 95 units at Equity Residential’s newly completed luxury property, 100K Street NE, and will stay there through spring 2019.

“100K Apartments affords guests an elegant living environment in a hip neighborhood,” says WhyHotel President and Co-founder Bao Vuong said in a statement.

“We are thrilled to be offering our hotel-like amenities to Washington, D.C.’s vibrant NoMa neighborhood. The location offers great proximity to food venues, entertainment, art installations and new amenities delivering every day,” he said. 

WhyHotel alleviates some of the pressure of lease-up by using vacant units as luxury hotel rooms for a limited time. A boon for Class-A urban core properties which can experience some difficulty with lease up since competition in these areas is fierce.

“We believe welcoming WhyHotel to our 100K Street will offer people visiting the NoMa neighborhood the chance to experience our newly completed luxury community while providing a unique amenity that our residents and potential residents can also enjoy and at the same time create incremental value as we lease up this terrific property,” Equity Residential Vice President Development Benjamin Stoll said in a statment.

Article source: https://www.housingwire.com/articles/46105-whyhotel-adds-cathy-ross-to-board-and-expands-in-dc

Roofstock acquires single-family rental management platform

Tech 100 winner Roofstock, an online single-family rental marketplace, just acquired Streetlane Homes, a single-family rental management company, to open up new opportunities for managing SFR properties on behalf of institutional investors.

“We are excited to welcome the Streetlane team into the Roofstock family,” Roofstock CEO and Co-Founder Gary Beasley said in a statement.

“The combined capabilities of Streetlane and Roofstock create a compelling one-stop-shop for institutional investors who are looking for U.S. housing exposure but don’t have – or want to build – an operating infrastructure to acquire, renovate and manage a large portfolio of SFR properties,” he added.

Streetlane currently manages roughly 2,100 SFR properties across five markets: Atlanta, Chicago, Dallas, Las Vegas and Nashville. Roofstock will retain these contracts, and the two companies will combine their efforts to enhance Streetlane’s offerings, they explained.

Streetlane is capable of opening up an operation in a new market within 30 days to 45 days, and Roofstock plans to leverage this flexibility to expand Streetlane’s operations into new cities and service more institutional investors, Roofstock explained in a press release. 

The acquisition will bolster Roofstock’s existing partnerships with more than 40 certified local property managers across the nation who are already managing properties on behalf of Roofstock’s investor clients, the company said. 

 

Article source: https://www.housingwire.com/articles/46107-roofstock-acquires-single-family-rental-management-platform

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