LOS ANGELES—The key for TruAmerica Multifamily, when looking at investment, is to look not at the CBD, but the first ring around. That is according to the firm's senior managing director of acquisitions and investor relations, Noah Hochman. “Whether it is the East Bay or just on the outskirts of Seattle, you can get some nice value add deals.”
Hochman served as a panelist at RealShare Apartments 2014 in a breakout session titled: Investment Beyond Core Locations. More than 1,500 attendees signed up for the two-day event, produced by ALM's Real Estate Media Group, which also publishes Real Estate Forum and GlobeSt.com.
For the Bascom Group's Chad Sanderson, principal of acquisitions and business development, the strategy that works for his firm is to find something that needs to be enhanced or have some sort of challenge. “We are a bottom up investor and take a middle market strategy,” he said. “Rather than looking at each market, we look at the intrinsic value in any given deal and we make our decision there.” Sanderson said that the Bascom Group looks just beyond the fray of where the institutional investors are going.
When moderator Brian Eisendrath, vice chairman of CBRE, asked about how demographics impact an investment decision, Hochman noted that his company focuses on the workforce housing and the units that are a bit more beat up. “When we analyze deals, we look at the income in the area, the current rent role, and when we think of a value-add strategy, we think about the tenant and if they can handle that kind of lift.”
Sanderson says the Bascom Group spends a lot of time looking at rent comps in the area to see what quality level finishes are there. “We spend time doing qualitative things like driving through the parking lots to see how many cars are there during the day when people should be working,” he said. “If you are going to spend money to improve the quality of units, you have to make sure you have the tenant base to afford those units.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
