The multifamily sector has a significant advantage over other real estate sectors. Having shelter is a basic human need that will never go away.
Demand for multifamily units far outpaces the supply coming on line.
We buy Class B & C properties because they offer the best risk/reward ratio. Regardless of the stage of the economic cycle, the demand for workforce housing is more resilient and will remain robust.
They are buying homes almost ten years later in life than the previous generation, pushing them to rent apartments for longer.
Construction of workforce housing has been limited due to rising materials prices and a labor shortage. The heightened costs have caused new multifamily construction to be centered around Class A product that requires higher rents to justify new construction.
The largest age cohort in the United States are the Baby Boomers- they are increasingly renters by choice, choosing to downsize and lower overhead expenses.
Class B & C product continues to be an attractive value alternative for renters who seek the best value for their money.
As of Q1 2019, home prices were rising faster than wages in most markets.
Properties with embedded upside from existing rents that are 10-30% below market
Stabilized product with a value-add component that yields compelling returns without the development risk
Assets whose occupancies and rental rates show a clear and rising trend
Properties that can be bought at a substantial discount to replacement cost
Properties where we can obtain attractive fixed-rate financing
Located in high-growth secondary markets in the Southeast and Texas, where population and job growth prevail
Where we can renovate and improve unit interiors and add attractive tenant amenities to drive property performance and increase value
U.S population is expected to grow at a healthy pace over the next 25 years thus further supporting the case for multifamily investing. Our competitive advantage resides in our ability to identify under-managed assets and maximize their potential through quick turnarounds and professional property management.
PIA Residential seeks properties in strong locations across the high-growth markets of the Southeast and Texas. The above-average job and population growth trends in these locations allow our properties to be better insulated against market headwinds. Solid economic fundamentals, a diversified concentration of industries, and strong demand for multifamily in these burgeoning markets will allow for continued outperformance.