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2007 UConn Real Estate Conference: Insights on Multi-Housing Market Trends

The 2007 UConn Real Estate Conference featured Michael Stone focusing on the multifamily housing market. Emphasizing stable fundamentals, the session highlighted trends such as increasing household formations, declining homeownership rates, and the resurgence of renters. As echo boomers reach prime renting age, strong rental demand has emerged, marking one of the most robust periods since the early 1980s. The conference addressed various factors impacting the market, including absorption rates, construction trends, and the implications of the credit crunch on property transactions.

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2007 UConn Real Estate Conference: Insights on Multi-Housing Market Trends

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  1. 2007 UCONN REAL ESTATE CONFERENCE Michael StoneMULTI-HOUSING MARKET NOVEMBER 8, 2007

  2. CT Fundamentals Stable Construction/Absorption and Vacancy Source: REIS

  3. STRONG RENTAL DEMAND FORECASTED…… Increasing Household Formations Declining Homeownership Rates A New Era – Renters are Back

  4. A New Era – Renters are Back Echo Boomers are Nearing Prime Renting Age Source: National Multi Housing Council

  5. A New Era – Renters are Back Change in Population Growth Age Group Source: U.S. Census

  6. A New Era – Renters are Back 1915 1967 2006 Source: U.S. Census Bureau

  7. A New Era – Renters are Back *As of 2Q07 Source: U.S. Census Bureau.

  8. Increasing Household Formations: Echo Boomers = Prime Rental Ages Baby Boomers = Lifestyle Renters Shrinking Household Sizes Declining Homeownership Rates: Renting Still Cheaper & More Predictable Subprime Mess A New Era – Renters are BackStrongest Rental Demand Since Early 1980s…

  9. National: Going in Cap Rates 0-25 bps – CORE MARKETS 25-50 bps– SECONDARY MARKETS Value 2-10% Central CT.: No major changes Credit Crunch

  10. Seller: Capital PropertiesBuyer: Robert Martin Company/Paredim Partners Units: 400 Price: $35,500,000 $88,750/unit Glenbrook - Rocky Hill, Connecticut

  11. Stony Brook Apartments- East Haven, CT. • Seller: HP Stony Brook LLC • Buyer: Stony Brook Village LLC • Units: 165 • Price: $22,200,000 • $134,545/unit • Cap Rate: 6.27 %

  12. Seller: Groton Community LLC C/O GRP Realty Buyer: LCOR Groton Apartments LLC Units: 329 Units Price: $51,000,000 $155,015 /unitCap Rate: 5.7 % The Ledges - Groton, Connecticut

  13. Seller: Tarragon CorporationBuyer: Newbury Property LLC Units: 180 Price: $30,300,000 $168,333/unit Cap Rate 5.73 % Trailing-Twelve Newbury Village - Meriden, Connecticut

  14. Seller: CIGNA Realty Investors/Bozutto Group Buyer: Fairfield Residential Units: 246 Units Price: $52,500,000 $213,415/unit The Hawthorne at Gillette Ridge - Bloomfield, CT

  15. Seller: REIT – Archstone Smith Buyers: Tishman Speyer & Lehman Brothers Units: 87,667 (359 Communities) Price: $22,200,000,000 ($253,231/unit) Largest ever apartment financing deal in Fannie May history (closed post credit crunch) Tishman Speyer/Lehman Brothers ARCHSTONE SMITH REIT Privatization

  16. 50 Cent’s Mansion in Farmington, CT. $18.5 Million Asking Price • 48, 000 SF • 18 Bedrooms • 33 Bathrooms • 5 Kitchens

  17. 2007 UCONN REAL ESTATE CONFERENCE Michael StoneMULTI-HOUSING MARKET NOVEMBER 8, 2007

  18. THANK YOU

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