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SkyHouse Austin celebrated its grand opening last week, the latest in a wave of new multifamily delivering in Austin. (And believe it or not, it's a necessary wave.)  Here are Simpson Housing SVP Ginney Harvey and regional marketing director Jennifer Roberts with Skyhouse Austin leasing consultant Brandi Harrington at Thursday's unveiling party. Simpson teamed up with Novare Group, Batson-Cook Development, and Andrews Urban to develop the 320-unit luxury community. 108 units have already leased.  HFF senior managing director Sean Sorrell and director Matt Pohl (who just joined the firm) tell us new properties like SkyHouse Austin will benefit from the metro's above-average population of young professionals (the same way used record stores and fair trade clothing shops benefit from that population). They're prime renters, and 30% of Austin's population is between 25 and 34 years old, compared to 21% nationwide. Because of this, Sean and Matt doubt we'll see much dip in occupancy as more than 12,000 units deliver this year. We've also got some wiggle room—the duo tells us occupancy over 94% suggests it's time to add some product, and Austin's posting over 95%.  Perhaps the most exciting trend in Austin multifamily today is the increase in institutional and international investment. (If they had the chance to enjoy this view from SkyHouse Austin's pool deck, every investor would want in.) Sean tells us we've enjoyed national attention for years, but activity from all over the globe—Canada's particularly lovestruck—is new. |
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San Antonio Battles it Out for Sites Multifamily development is hot in San Antonio, too, according to experts at Bisnow's recent San Antonio Multifamily Summit. LYND CEO Mike Lynd says development is the easy investment decision now, but it's harder to put into practice—“it's a knife fight out there for sites.” (And your parents told you to stay in school and get a good job to avoid trouble.) With land prices skyrocketing, he says it's important to pick an area where income supports higher rents. He's working on a few locations in San Antonio now and hopes to kick off a few developments here soon.  USAA Real Estate managing director of multifamily development Hailey Ghalib, an avid ping-pong player, says she's watching for challenges on a submarket-by-submarket basis. (They're like snowflakes: Each one is different and kids love them.) This year, she's well capitalized and still investing in her build-to-core program (which includes holding the property long term) in areas with high barrier to entry. She targets over 7% stabilized yield with USAA Real Estate's very conservative underwriting when she considers development.  Our moderator, IPA Austin/San Antonio director Scott “The Mountain” Lamontagne, says San Antonio has 32 projects underway (including student housing and affordable housing), giving it the healthiest ratio of deliveries to existing supply in Texas. He says this delivery pipeline will lead to core product selling again around the end of the year.  We snapped our sponsor Catamount Constructors' Rebecca Mansfield, JR Jones, and Scott Reynolds. The firm is breaking ground soon on its second project with 210 Development, Villa Espada. It's a 240-unit, 11-building apartment complex on the south side of San Antonio. Catamount is also building the Peanut Factory Lofts for 210 Development, the first major development on the west side of San Antonio that's part of the mayor's 2020 Vision. The abandoned peanut factory Downtown will be transformed into a 102-unit complex including 15 townhomes and eight student housing micro-units.  CARES by Apartment Life's Mark Moreno and Shon Comparin were busy at their booth, and they'd keep your apartment complex hopping, too. The firm is redefining the resident experience (boosting retention by welcoming new residents and hosting events) in the 147,000 units it serves nationwide, including more than 100 communities in South Texas. It plans to double the number of properties it serves in San Antonio this year. We've got yet more coverage of our developer speakers coming up in our next issue. Stay tuned! |
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