Top Markets for Multifamily Investors in 2024

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Good morning. Nashville, Phoenix, and Austin are the top US cities for multifamily investment in 2024, thanks to their post-pandemic affordability, economic diversity, and reliable population growth.

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• Back on top: Manhattan's CRE market saw $3.2B in sales volume and 80 transactions in Q3 alone, with Avison Young predicting an overall 16% increase by the end of the year.

• M&A moves: CoStar Group (CSGP) acquired startup Visual Lease for $272.5M to enhance lease management solutions and analytics database integration.

• Building blocks: New research from the Atlanta Fed suggests that streamlining permitting processes could help ease the U.S. housing supply shortage and potentially lower rents.

• Sinking Cohen: Charles Cohen is facing down a $187M guarantee claim by Fortress, and is now risking foreclosure on several assets including theaters, hotels, and his yacht.

• Ugly numbers: NY Community Bank (NYCB) still faces financial strain after reporting a 990% YTD increase in delinquent multifamily loans totaling $1.5B.

• Age-old problem: NYC's famous (and infamous) housing market still faces limited new construction. Although new building filings were up 10% in Q3, they are still 43% below the long-term average.

• Affordable transformation: Ethos Real Estate acquired San Mateo's Hillsdale Garden Apartments for $252.4M, converting 697 market-rate units to affordable housing.

• Making waves: PMG acquired a $19.2M co-op at 900 Intracoastal Drive in Fort Lauderdale to build a 44-unit Sage Intracoastal Residences.

• Healthy homes, happy hearts: The NRP Group’s new Fort Worth development, Thrive on Crawford, offers 67 affordable multifamily units and 2.2 KSF dedicated to healthcare and medical care.

• Bulk boom: Demand for large industrial spaces shows steady growth, with the Western region leading bulk occupancy gains. Vacancy rates are expected to ease as new construction slows.

• Condo innovation: Regal Ventures is exploring a unique approach by acquiring an industrial property in PA with a condo ownership model.

• Revved up: Auto dealers Ali and Faisal Ahmed entered South Florida’s industrial sector with a $38.2M purchase of a Miami Lakes warehouse, a $16M gain for seller Brookfield (BN) in just four years.

• Retail recession: Tampa Bay's retail leasing volumes fell by 35% to 1.25 MSF in the first half of 2024, with consecutive quarterly declines.

• Financing frenzy: NYC's CRE financing dropped in September, totaling just $2B, with a Co-op City shopping center securing the largest loan at $280M.

• Rethinking Madison Ave: The fashion mecca of the US, Madison Avenue in Manhattan, is seeing a luxury retail revival with new flagship stores and exclusive condos selling out very quickly.

• Texas talent triumph: Simplilearn moved its HQ from San Francisco to Plano, Texas, citing a more diverse talent pool in the North Texas and DFW metroplex.

• Amenity-rich: The Irvine Company invested $10M in amenities since buying 1 North Wacker in 2015, managing to secure a 10-year lease renewal with PwC.

• Distressed deal: CBRE Group (CBRE) is seeking $80M for a non-performing $93M loan to Vanbarton Group, which would allow the buyer to control the San Francisco tower.

📈 CHART OF THE DAY