SAN DIEGO—One of the common misconceptions about the affordable space is safety and crime. That was according to Daryl Carter, chairman and CEO of Avanath Capital Management LLC.
The panelist, who spoke at the 2017 NMHC Apartment Strategies Outlook Conference, said that the more turnover you have at a property, the less safe it will be, so his firm focuses on maintaining a consistency. “It creates a much more stable community.”
He also explained that the turnover expense is also miscalculated as an industry…it is a hidden cost. For Avanath, savings can often be created on the expense side such as with LED lighting etc.
Robert Hart, president and CEO of TruAmerica Multifamily, said that the elasticity on the west coast is very different than most major markets. “A $200 to $300 rent increase can be absorbed by the same demographic but in other places, there is more sensitivity.”
As for investment opportunities, Carter said he is bullish on it and expects to buy as much as they did the last two years. “We continue to see demand for larger apartments,” he said. “We try to buy properties that have a lot of three bedrooms because those don't seem to turn over as much.”
Carter continued to point out that while there is a lot of focus on Millenials, he sees a lot of multi-generational families and increasingly, he believes there will be a greater demand particularly as the baby boomers continue to age. “That is a segment we see a lot of growth in.”
SAN DIEGO—One of the common misconceptions about the affordable space is safety and crime. That was according to Daryl Carter, chairman and CEO of Avanath Capital Management LLC.
The panelist, who spoke at the 2017 NMHC Apartment Strategies Outlook Conference, said that the more turnover you have at a property, the less safe it will be, so his firm focuses on maintaining a consistency. “It creates a much more stable community.”
He also explained that the turnover expense is also miscalculated as an industry…it is a hidden cost. For Avanath, savings can often be created on the expense side such as with LED lighting etc.
Robert Hart, president and CEO of TruAmerica Multifamily, said that the elasticity on the west coast is very different than most major markets. “A $200 to $300 rent increase can be absorbed by the same demographic but in other places, there is more sensitivity.”
As for investment opportunities, Carter said he is bullish on it and expects to buy as much as they did the last two years. “We continue to see demand for larger apartments,” he said. “We try to buy properties that have a lot of three bedrooms because those don't seem to turn over as much.”
Carter continued to point out that while there is a lot of focus on Millenials, he sees a lot of multi-generational families and increasingly, he believes there will be a greater demand particularly as the baby boomers continue to age. “That is a segment we see a lot of growth in.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, 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.
