Isle Cottages (“The Property”) is a class A 99-unit single-family for rent community built in 2020 in Myrtle Beach, SC. The Property features best-in-class single-, two-, and three-story cottages with light and airy open floorplans and front porches framed in coastal architecture and exteriors painted with beach hues offering a low-density, single-family home lifestyle. Residents of Isle Cottages can enjoy a quiet neighborhood-like community featuring custom home interior finishes with the benefits of resort-inspired amenities and without the burdens of home ownership. In-home features include spacious walk-in closets and powder rooms, plank flooring, stainless steel appliances, full-size washer & dryer, modern white cabinetry, spacious granite countertops, designer lighting package, ample storage, and vaulted ceilings. Select units feature private backyard patios and attached garages. Community amenities include a resort-style pool with cabanas, picturesque courtyards, walking paths, grilling decks, fitness center, resident gaming lounge, expansive pet parks and community gardens.
Dome’s portfolio of 31 properties totals nearly $1.41 Billion.
Dome Equities, LLC announces the acquisition of Arium Grandewood.
Arium Grandewood the (“Property”) is a class A- 306-unit garden-style apartment complex built in 2005. The Property has frontage along Central Florida Parkway just east of John Young Parkway in South Orlando. Located 0.25 miles east of The J.W. Marriott and Ritz Carlton at Grande Lakes Resort and 1.5 miles south of Orlando Central Park’s SouthPark office park, The Property sits at the confluence of Central Florida’s major transportation arteries. Dome management, through an affiliate, invested with the developer, Wood Partners, in building the Property in 2005. 15 years later Dome has acquired the Property to implement a value add strategy. Dome is also currently in partnership with Wood Partners finishing the construction of Alta Headwaters about 0.25 miles away. Leasing has been vibrant even with COVID-19.
Dome’s apartment portfolio of 24 properties totals nearly $1.17 Billion.
Dome Equities, LLC announces the acquisition of Tradition at Palm Aire.
Tradition at Palm Aire (“The Property”) is a low-density, concrete construction apartment community with brick exterior and concrete tile roofs. Originally built in 1991 to be condominiums, The Property has 248-units located in Sarasota, Florida off University Parkway on the grounds of the Palm Aire Club. The Property is positioned between US Route 301 and Interstate 75 in a walkable Sarasota location just minutes from the high-end Mall at University Town Center and in close proximity to the Sarasota-Bradenton International Airport and Sarasota’s business district, theaters, art galleries, shops, restaurants, and renowned beaches. Based on desirability, value, job market, quality of life, and net migration U.S. News ranked Sarasota as the best place to live in Florida in 2019. U.S. News ranks Sarasota as the 18th best place to live in the country as well as the nation’s second-best place to retire. The Property residents have convenient access to the Mall at University Town Center, one of West Florida’s premier retail centers. The Mall at UTC is a world-class fashion and dining destination that features approximately 880,000 square feet of retail space with Saks Fifth Avenue, Macy’s, Dillard’s and more than 150 stores and over 20 dining options in addition to many distinctive retailers not found anywhere else in the local area.
Dome’s apartment portfolio of 23 properties totals nearly $1.09 Billion.
Dome Equities, LLC announced the acquisition of both Avana Grove and Avana Stone Canyon.
Avana Grove is located in the Northeast San Antonio suburb of Universal City, TX. The property is a gated, 2006 construction asset with 308 apartment homes positioned just off well trafficked Loop 1604. Residents are minutes from IH-35, the master-planned retail center The Forum at Olympia Parkway, and a four-mile drive from Randolph Air Force Base. Randolph Air Force Base totals over 11,000 employees and provides Air Force pilot and navigator training. The base houses several headquarters including Air Education & Training Command (AETC), Air Force Personnel Center (AFPC), and Air Force Headquarters Recruiting Services. San Antonio is home to one of the largest military concentrations in the United States with defense industry employment totaling over 77,000 personnel. Avana Grove is zoned in the well-regarded Judson Independent School District, with two schools located within 0.5 miles of the property.
Avana Stone Canyon is located in the prestigious Stone Oak submarket of San Antonio, TX. Stone Oak is a master-planned, deed restricted, multi-use development in north central San Antonio. Avana Stone Canyon is a gated, 2005 construction asset with 228 apartment homes positioned just off highly trafficked US-281 on Encino Commons and 2.5 miles north of the intersection of Loop 1604 and Highway 281. Residents are in close proximity to major employers, entertainment, and recreation. Avana Stone Canyon is zoned in the highly-rated North East Independent School District, with many schools located within 1.5 miles of the Property. Avana Stone Canyon is less than two miles northeast of Ridgewood Park, a 122-acre master-planned business park anchored by Andeavor (formerly Tesoro) headquarters, home to roughly 1,200 employees. The Sonterra Medical Center is 2.7 miles southwest of Avana Stone Canyon and home to both North Central Baptist Hospital and Methodist Stone Oak Hospital (the #1 hospital in San Antonio and #6 in the nation as ranked by Medicare.gov). These two hospitals employ approximately 1,200 employees.
Dome’s apartment portfolio of 31 properties totals nearly $1.35 Billion.
Dome Equities, LLC today announced the acquisition of Sunrise Canyon.
Sunrise Canyon (the “Property”) is a 208-unit, Class A- apartment community located in the Northeast San Antonio suburb of Universal City. The Property was built in 2005 and is a gated community with 208 apartment homes positioned on well trafficked Universal City Boulevard. Residents are minutes from both Loop 1604 and IH-35, the master-planned retail center, The Forum at Olympia Parkway, and a two-mile drive from Randolph Air Force Base. Residents of Sunrise Canyon benefit from a diverse range of area employment sectors including medical, service, and military. Randolph Air Force Base totals over 11,000 employees and provides Air Force pilot and navigator training. The base houses several headquarters including Air Education & Training Command (AETC), Air Force Personnel Center (AFPC), and Air Force Headquarters Recruiting Services. San Antonio is home to one of the largest military concentrations in the United States with defense industry employment totaling over 77,000 personnel.
Dome’s apartment portfolio of 29 properties totals nearly $1.3 Billion.
Dome Equities, LLC today announced the acquisition of The Westcott.
The Westcott is a 444-unit, Class B+ apartment community built in two phases in 2000 and 2005 in the state capital of Tallahassee, Florida. The property has a suburban location in a well-established residential neighborhood with convenient access to an abundance of retail and office employment and three colleges. Tallahassee is Florida’s governmental hub along with post-secondary institutions and expanding healthcare facilities employing over 93,000 employees within five miles of the property. Florida State University is located in Tallahassee with 41,867 students. The State of Florida is the largest employer, in Tallahassee, with 22,600 employees. Within five miles of the property are 10.1 million square feet of 96% occupied retail space which includes 54 restaurants and 12 hotels. Within three miles there is 5.3 million square feet of 97% occupied retail space – this includes 6 grocers.
Dome’s apartment portfolio of 30 properties totals nearly $1.3 Billion.
Dome Equities, LLC today announced the acquisition of Matthews Crossing.
Matthews Crossing is a 460-unit, Class B+ apartment community built in two phases in 1988 and 2000 in Charlotte, NC. The property is located southeast of Charlotte just outside the City of Matthews on a 33+ acre site with frontage on Independence Blvd (US-74). Independence Blvd serves as the primary thoroughfare linking the town of Matthews, three miles to the south of the Property, and the Charlotte Central Business District, seven miles to the north. The traffic count along Independence Blvd is significant at 64,500 cars per day. The location allows residents easy access to the metro’s main employment drivers including the Central Business District, University area, and Ballantyne. Local shopping and amenities are within close proximity including big box retail and grocery, the cinema, and Novant Health Medical Matthews Center.
Dome’s apartment portfolio of 30 properties totals nearly $1.3 Billion.
Dome Equities, LLC today announced the acquisition of both Crown Pointe and Gateway Lakes.
Crown Pointe is a 360-unit, Class B apartment community built in 1986 in Coconut Creek, FL. The property offers residents convenient access to major highways resulting in a short commute to the major employment hubs within Broward County and the surrounding South Florida markets. Crown Pointe is located within The Township, a 5,300 +/- home, master-planned community developed by Minto largely in the 1980s. Access to retail services is also excellent. Crown Pointe enjoys excellent visibility along two heavily traveled roadways, Sample Road (53,000 cpd) and Lyons Road (35,400 cpd).
Gateway Lakes is a 358-unit, Class B+ apartment community built in 1996 in Sarasota, FL. The Property is 5 minutes from the University Town Center, only 10 minutes from downtown Sarasota, 15 minutes from the world-renowned St. Armand’s Circle as well as the award-winning beaches along Lido Beach and Long Boat Key. Gateway Lakes enjoys tremendous visibility from Interstate 75 (119,000 cpd) and is less than one mile north of Fruitville Road, one of the three primary east/west corridors that connect I-75 to downtown and the beaches.
Dome’s apartment portfolio of 32 properties totals nearly $1.3 Billion.
Dome Equities, LLC today announced the acquisition of Brookson Resident Flats, a 296-unit, Class A+ apartment community in Huntersville, North Carolina, located within the North Charlotte submarket of the Charlotte MSA. Brookson is located near an abundance of employers, entertainment, and retail.
The Charlotte MSA contains a diverse economy that hosts the headquarters of seventeen Fortune 1000 companies and seven Fortune 500 companies. Largely known as a hub for banking, Charlotte’s economy continues to diversify thanks, in part, to the success of University Research Park, which is the fifth largest research park in the country and is connected to the University of North Carolina at Charlotte. Manufacturing, logistics, defense and security, and healthcare have experienced significant growth in the Charlotte region over the past decade. With exceptional market access, a talented labor pool, several highly-regarded universities within a three-hour drive, and extremely low unionization rates, employers are continuously drawn to the area.
Brookson is located within the 430 acre Bryton Park master plan mixed use development. The property was recently completed and is in the final stage of its initial lease-up. Brookson has impressive natural and man-made amenities. It also abuts a protected natural area which inspired design elements throughout the clubhouse, pool, grilling area, picnic area and outdoor sitting/playroom area.
According to Eric D. Jones, Dome Equities’ Chief Investment Officer, “Our investment in Brookson Resident Flats provides us exposure to a Growth Corridor within a high growth MSA. The recently completed I-485 outer loop less than 1 mile south of the property is expected to accelerate the economic expansion in this region.”
Dome’s apartment portfolio of 30 properties totals $1.2 billion.
Dome Equities, LLC today announced the acquisition of both Dwell at Legacy and Longhorn Crossing.
Dwell at Legacy is a 289-unit, Class A apartment community built in 2015 in San Antonio, Texas. The property is located in one of the most affluent neighborhoods of San Antonio named Stone Oak in north central San Antonio. The property is located within the Legacy Shopping Center, a master-planned, mixed-use retail, office and lifestyle development and strategically located at the heavily traveled intersection of Loop 1604 and Highway 281.
Longhorn Crossing is a 240-unit, Class A apartment community built in 2015 in Fort Worth, Texas. The property is in the dynamic Northwest Fort Worth submarket and provides residents convenient access to the area’s diversified base of high quality employers. The immediate area continues to experience above average economic development which is spreading west of I-35 and north of I-820.
According to Eric D. Jones, Dome Equities’ Chief Investment Officer, “Our investment strategy on both investments is to obtain exposure in two of the nation’s strongest rental markets and implement more professional property management to enhance and optimize operational performance.”
Dome’s apartment portfolio of 30 properties totals nearly $1.2 billion.
Dome Equities, LLC today announced the acquisition of Avana Southgate, a Class A apartment community located in south-central Louisville. Residents enjoy access to the Commerce Crossings Business Park next door, and are only eight miles from the work sites of Louisville’s three largest employers, UPS, Ford and GE Appliances. Built in 2001, the property is comprised of 256 apartments, consisting of one and two bedroom units with an average square footage of 932.
Dome’s value-add renovations will include vinyl plank flooring throughout all first floor and upper floor units, carpet replacement in bedrooms and living areas, stainless steel kitchen appliances, bathroom amenity updates, light fixture updates, and two tone gray paint in the living, dining, and kitchen areas. The interior renovations will be completed over a 3 ½ year timeframe.
“We believe Avana Southgate is an excellent addition to our nationwide apartment portfolio, providing further exposure to another metropolitan area with above average growth prospects. A lower cost structure for doing business coupled with favorable population trends are helping this region outpace the national averages,” said Eric D. Jones, Dome Equities’ Chief Investment Officer.
Dome’s apartment portfolio of 31 properties totals nearly $1.25 billion.
Dome Equities today announced the acquisition of Vista Pointe, an institutional grade apartment community located in the Valley Ranch master-planned community of Irving, Texas. This location provides residents with convenient access to the entire Dallas Fort Worth Metroplex and is also located in the award-winning Coppell Independent School District. The community was built in 1996 and consists of one, two, and three bedroom units with an average square footage of 1,032. Eighty-seven percent of the units have direct access garages.
Dome’s value-add plan for Vista Pointe includes installing stainless steel appliance packages in each unit, as well as lighting and plumbing packages in bathrooms and kitchens, vinyl floor planking, cabinets, window coverings, and ceiling fans.
“We believe Vista Pointe is a great addition to our national apartment portfolio and expect it will benefit from strong & stable demographic trends coupled with added exposure to another high growth corridor of the United States economy,” said Eric D. Jones, Dome Equities Chief Investment Officer, “We are confident that Dome’s expertise in value-add improvements are designed to enhance Vista Pointe to accommodate the growing number of residents choosing to make Irving their home.”
Dome’s real estate portfolio totals nearly $1.27 billion, which includes eight properties in Texas.
Jones further stated, “Irving is a diverse, strategically located city in an above average growth metropolitan area. Managerial and professional service growth are leading this economy on the back of a number of major corporate relocations. A high concentration of corporate headquarters, technology businesses, banking, distribution infrastructure, and above-average population growth are leading sectors longer term. We are delighted to increase our presence in this dynamic region.”
Vista Pointe is jointly owned with a Dallas headquartered multifamily operator and will be professionally managed by this company.
As volatility remains ever-present and investors search for yield, where do you turn? Alternative investment vehicles seem to be growing exponentially and investors and advisors remain at the forefront of the allocation debate.
One asset class has remained tried and true: real estate, more specifically, multifamily real estate. Value-add strategies in the multifamily space remain steadfast, even during the most trying of economic conditions, and is one of the best hard, non-correlated assets acting as a hedge against inflation. Furthermore, value-add enables investors to be flexible by offering lower holding periods, often around three years, and managers have agility to allocate based on evolving demographic and economic indicators.
While REITs seem to hog the spotlight in real estate, they are simply too correlated with the general market and interest rates to offer diversification. Of all the real estate streams, multifamily is perhaps the best place to generate absolute returns based on national trends that signal high occupancy, high rental demand and low supply. Let’s examine:
Surplus renter demand outpacing supply
U.S. renters are driven by two groups, lifestyle renters and primary renters priced out of homeownership. Lifestyle renters, 69 percent of whom are married with no children below age 18, can afford a home but opt to rent due to its ease and capital preservation. Public opinion polls reveal homeownership is no longer a central tenet of “the American dream” as maintaining an owned residence is expensive, labor-intensive and many folks would rather enjoy amenities apartment communities offer. The lifestyle renter cohort emerged as a definitive renter following the housing bubble of the Great Recession.
Prime renters, (between ages 20-34) or millennials, lead a mobile lifestyle to follow the job market. This encourages renting as it offers young people the greatest flexibility or liquidity to find a better opportunity elsewhere. The mobility desire is reinforced by the difficult consequences of the recession, forcing this somewhat nomadic demographic to search for jobs away from their cities of origin. The prime renter age cohort is growing at its fastest rate on record as the children of baby boomers come of age. This record pace of growth is projected to increase prime renters age cohort by 500,000 persons per year through 2023.
Student debt is also afflicting prime renters at record levels, having increased nearly three times since 2004 for those under 30. This prolongs their attachment to rental properties or drives some to reside with family. More than one in five Americans with student loans are at least three months behind on a payment. Today, the percentage of prime renters living with parents is at the highest level since 1967, when these statistics were first collected. Even if those living at home attain employment or improved jobs, they will naturally emerge as renters because the barrier to entry for home buying remains tall. Home buying events are also being delayed, lengthening one’s status as a renter. The decision to marry and to have children are now at the oldest ages on record.
Yet construction of new apartments to meet the demand has failed to keep pace, resulting in today’s high occupancy rates, averaging 95.2 percent as of June 2016 according to Axiometrics. Axiometrics also reports multifamily permits issued in the trailing 12 months of 381,000 units, which compares favorably to the aforementioned growth in the prime renter age cohort, resulting in continued high occupancy levels coupled with above-average rental growth rates. Additionally, home ownership rates have yet to find a bottom almost a decade following their peak. Each 1 percent decline in the home ownership rate is estimated to represent nearly 1.1 million new renters, according to Census Bureau statistics.
Millennials pick suburbs over urban centers
The most opportunistic multifamily investments are not in the nation’s biggest cities of New York, Los Angeles or Washington, D.C. Rather, they are often in suburban areas in the South and Midwest, buoyed by business-friendly policies that have opened new jobs for millennials. Enhanced business environments have led to the relocation of major corporate headquarters such as Toyota, away from traditional Californian urban cores, to Texas, for example. Other key markets with thriving suburban economies include North Miami Beach, Orlando, Florida’s Gulf Coast, Dallas and Denver. New and sustainable jobs are emerging in the tech, corporate and financial services industries. These higher wages will allow young people to rent higher-quality apartments all the while having a multiplier effect on the local economy.
How to make the most of multifamily investing?
Multifamily properties, especially those in the middle market, provide a combination of significant yield and absolute returns in these increasingly volatile times. For advisors and clients, this can be an attractive avenue to achieve a steady return stream as traditional fixed-income allocations provide low to negative yields. In addition, value-add multifamily investing offers the prospect of capital appreciation, which is expected to result in absolute double-digit returns per year, while U.S. public equities are reaching record levels of volatility. Only managers that follow an agile strategy, use deep macro research and maintain local operator relationships can unearth properties that are poised to benefit from both demographics and local economic dynamics that drive value.
This story originally appeared on Wealth Management.