Integra 14 th Annual Real Estate Trends & Investment Criteria Forecast: 2016 Property Sector: Multifamily
Kansas City Multifamily Use Presented by: Eric Owens Integra Realty Resources Moderator: Krista Klaus KMBZ Business Channel at Entercom Radio Panel Members: Paul Worcester Worcester Investments George Birt Downtown Developers Steve Coon EPC Real Estate Group Brenner Holland Hunt Midwest Laurel Wallerstedt Berkadia, LLC
The Best, The Worst, and The Local Market Top Three Urban Multifamily Markets By Vacancy Class A 1. Las Vegas, NV 1.62% 2. New York, NY 2.60% 3. Detroit, MI 2.61% and the Bottom Three Urban Multifamily Markets By Vacancy Class A 57. Baltimore, MD 15.40% 58. Charleston, SC 16.00% 59. Raleigh, NC 22.00% National Average: 7.25% Local Market Class A 47. Kansas City, MO/KS 9.36% Source: IRR Viewpoint 2016
The Best, The Worst, and The Local Market Top Three Suburban Multifamily Markets By Vacancy Class A 1. Dayton, OH 2.32% 2. Sacramento, CA 2.39% 3. Syracuse, NY 2.65% and the Bottom Three Suburban Multifamily Markets By Vacancy Class A 59. Greensboro, NC 8.74% 60. Washington, DC 9.40% 61. Raleigh, NC 11.00% National Average: 4.78% Local Market Class A 45. Kansas City, MO/KS 5.58% Source: IRR Viewpoint 2016
Kansas City Sales Volume & Cap Rates $1,000.00 $900.00 All Classes 9.00% 8.50% Sales Volume (in millions) $800.00 $700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 8.00% 7.50% 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% Cap Rate $0.00 2009 2010 2011 2012 2013 2014 2015 4.00% Sales Volume Cap Rate Linear (Sales Volume) Linear (Cap Rate)
Major Submarkets Kansas City Metro Area Kansas City Metro Area All Classes 125,000 10.00% 9.00% 120,000 8.00% 115,000 7.00% 6.00% 110,000 5.00% 105,000 4.00% 3.00% 100,000 2008 2009 2010 2011 2012 2013 2014 2015 Supply (units) Vacancy Source: REIS 2.00%
Major Submarkets Northland Northland All Classes 27,000 10.00% 26,000 9.00% 25,000 24,000 23,000 22,000 21,000 20,000 8.00% 7.00% 6.00% 5.00% 4.00% 19,000 3.00% 18,000 2008 2009 2010 2011 2012 2013 2014 2015 Supply (units) Vacancy Source: REIS 2.00%
Wyandotte All Classes Major Submarkets Wyandotte 5,500 14.00% 5,000 12.00% 4,500 10.00% 4,000 8.00% 3,500 6.00% 3,000 4.00% 2,500 2008 2009 2010 2011 2012 2013 2014 2015 Supply (units) Vacancy Source: REIS 2.00%
Major Submarkets North Johnson County North Johnson County All Classes 30,000 10.00% 29,500 29,000 8.00% 28,500 28,000 6.00% 27,500 27,000 4.00% 26,500 26,000 2.00% 25,500 25,000 2008 2009 2010 2011 2012 2013 2014 2015 Supply (units) Vacancy Source: REIS 0.00%
South Johnson County All Classes Major Submarkets South Johnson County 23,000 8.00% 21,000 19,000 7.00% 17,000 6.00% 15,000 13,000 5.00% 11,000 4.00% 9,000 7,000 3.00% 5,000 2008 2009 2010 2011 2012 2013 2014 2015 Supply (units) Vacancy Source: REIS 2.00%
Jackson County All Classes Major Submarkets Jackson County 34,000 12.00% 33,000 32,000 10.00% 31,000 8.00% 30,000 29,000 6.00% 28,000 4.00% 27,000 26,000 2008 2009 2010 2011 2012 2013 2014 2015 Supply (units) Vacancy Source: REIS 2.00%
CBD/Midtown All Classes Major Submarkets CBD/Midtown 13,000 12.00% 12,000 11,000 10.00% 10,000 8.00% 9,000 8,000 6.00% 7,000 4.00% 6,000 5,000 2008 2009 2010 2011 2012 2013 2014 2015 Supply (units) Vacancy Source: REIS 2.00%
Carrington Park Year Built 2007 Neighborhood Northland Class A Sale Date August 19, 2015 Sale Price $39,700,000 Price Per Unit $133,221 Units 298 Cap Rate 5.70% Occupancy Rate 98.0% Buyer STAR Carrington KC, LLC Seller Barrytown Apartments, LLC 2015 Transactions
The Havens of Prairie Trace Year Built 2014 Neighborhood South Johnson County Class A Sale Date July 29, 2015 Sale Price $44,500,000 Price Per Unit $159,107 Units 280 Cap Rate 5.25% Occupancy Rate 96.0% Buyer Phoenix II, LLC Seller Mid America Apartments, L.P. 2015 Transactions
The Manor Homes of Arborwalk Year Built 2006 Neighborhood Lee s Summit Class A Sale Date March 1, 2015 Sale Price $37,250,000 Price Per Unit $133,036 Units 280 Cap Rate 5.50% Occupancy Rate 97.0% Buyer Arbor Development, LLC Seller MAR Arborwalk, LLC 2015 Transactions
ARTerra Developer Copaken Brooks and The Koman Group Location 21 st & Wyandotte $24 million project Crossroads District Class A Multifamily Development 125 Residential Units, 12 stories Enclosed Parking 153 parking spaces New Projects
One Light Tower Developer The Cordish Company $79.2 million project Grand Opening December 2015 Class A Multifamily Development Location 13 th & Walnut 25 Stories, 307 units Amenities Two Light New Projects
East 9 Pickwick Plaza Developer Gold Crown Properties East 9 Pickwick Plaza Located 10 th & Oak Street Renovation started November 2015 $65 million project 260 market rate apartments Year Built 1930 Amenities Tax Abatement, Tax Credits New Projects
Paul Worcester Worcester Investments
Founded 2006 Moved to KC 2007 Multifamily
3,200 units INC 5,000 125 employee team
Summit on Pryor 1220 Washington
George Birt Downtown Developers
Projects
RMwest Apartments
RMwest Phase II
Steve Coon EPC Real Estate Group
The District Lenexa City Center
Avenue 80 Overland Park
17 Madison Westside, Kansas City, MO
Brenner Holland Hunt Midwest Real Estate Development, Inc.
The Vue Overland Park
Mission 106 Leawood
Benton House Metro KC
Laurel Wallerstedt Berkadia
$26 BILLION Berkadia s 2015 loan origination volume surpassed $20 billion, while investment sales exceeded $6 billion. $18 BILLION Since 2012, our investment sales division has closed more then 1,700 transactions, totaling $18 billion. 16,500 TRANSACTIONS Berkadia s 2015 loan origination volume surpassed $20 billion, while investment sales exceeded $6 billion. $86 BILLION Total historical sales by our investment sales advisors exceed $86 billion. $235 BILLION One of the largest loan and servicing portfolios worldwide at $235 billion. 65 OFFICES 65 offices nationwide, covering all major markets. For Berkadia s national and market specific research reports, visit www.apartmentupdate.comor contact Laurel Wallerstedt at (816) 531 4345.
ASKING RENTS AND VACANCY $925 6.0% $900 5.8% Waterstone $875 5.6% 372 Units Built 1969 $13.0 M 5.9% Cap $850 5.4% Kansas City, KS $825 5.2% $800 2012 2013 2014 2015* 2016** *Estimate; **Forecast Source: Berkadia, Axiometrics, Moody's Analytics 5.0% Englewood 152 Units Built 1972 $5.0 M 8.1% Cap Kansas City, MO
Villas at Carrington Square 278 Units Built 2008 $45.7 M 5.4% Cap Overland Park, KS Apartments at Bristol Park 119 Units Built 2009 $7.9 M 7.1% Cap Grain Valley, MO
Oak Park Village 510 Units Built 1972 $35.4 M 6.4% Cap Overland Park, KS Liberty Court 64 Units Built 1980 $3.2 M 7.1% Cap Liberty, MO