CRE Commentary

Wall Street Journal Covers KKR-Beazer Venture

The WSJ has an article on the KKR-Beazer JV focused on Single Family for Rent.  They are starting in Phoenix and Las Vegas. I think the opportunity in greater in markets that haven't experienced such deep levels of distress and are closer to recovery.

Why aren't we building more Multifamily?

Matt Yglesais has an interesting post on the Multifamily market. 

I think his conclusion is largely right , funding for ground-up development is still not back in-full. Multifamily remains the hottest sector from the capital markets side but construction lending is a "bridge too far" for many projects.

Single Family for Rent - Length of Tenancy

I am going to write a series on the Single Family for Rent strategy that is getting some press. Today I thought I would highlight one aspect that is interesting - tenant longevity. While single family rentals clearly have operational disadvantages vs. traditional multi-family - geographic separation, non-standard fixtures etc. etc. The best information I have found indicates the average tenant stays almost three and a half years in a single family rental vs. twenty-five months in traditional multi-family. This reduces leasing costs and downtime to help mitigate the added operational expense.