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The Richmond, Virginia, multifamily market recorded a mixed performance during the third quarter, as asking rents inched higher and vacancy rose. Apartment developers remain active across the region with projects totaling more than 6,600 units currently under construction.
The vacancy rate increased during the third quarter, jumping 90 basis points to 5.8 percent. Year over year, vacancy is up 190 basis points after reaching cyclical lows in late 2021 and earlier this year.
Average asking rents made modest gains during the third quarter, advancing less than 1 percent to $1,479 per month. During the past 12 months, local apartment rents rose 8.1 percent.
Sales activity accelerated during the third quarter, and the number of transactions to this point in the year is elevated. The median sales price climbed to $178,900 per unit, ahead of last year’s figure. Cap rates have been fairly stable thus far in 2022, averaging 4.25 percent.
Hampton Roads Q3 Multifamily Market Insights: With rent growth persisting, investors remain active
The multifamily market in Hampton Roads, Virginia, recorded a mixed performance during the third quarter, as vacancy rates pushed higher, and rent growth continued to climb. Multifamily developers remained active, with nearly 3,000 units currently under construction, up 40 percent from one year ago.
After remaining in a very low range for the past two years, the local vacancy rate rose 90 basis points during the third quarter, reaching 4.6 percent. Year over year, the rate is up 200 basis points.
Apartment rents rose by 1.7 percent during the past three months, reaching $1,456 per month. During the past 12 months, average rents have advanced by 7.4 percent.
The multifamily investment market posted another strong quarter. Sales velocity exceeded levels recorded during the previous period, and prices have trended higher. Year to date, the median sales price is roughly $149,000 per unit. Cap rates have ticked higher, averaging approximately 4.6 percent during the third quarter.
The apartment market in Hampton Roads appears to be settling into a new level of operational performance. The vacancy rate has pushed higher, after reaching an unsustainably low level late last year, while rents have risen across all property classes.
Vacancy rose 30 basis points in the second quarter to 3.7 percent. Vacancy reaches a cyclical low of 2.6 percent in mid-2021.
Average rents rose 2.6 percent in the second quarter to $1,432 per month. This followed a 2 percent increase at the beginning of the year. During the past 12 months, asking rents have surged 9.3 percent higher.
Multifamily investment activity gained momentum in the first six months of the year. The median sales price reached more than $149,000 per unit in the first half of 2022, a 10 percent increase from the median price in 2021. Cap rates during the second quarter averaged approximately 4.2 percent.
Richmond Q2 Multifamily Market Insights: Strong growth outlook driving new development
The Richmond multifamily market ended the second quarter in a strong position. Rents continue to push higher, and while the vacancy rate has ticked up, current levels are about 150 to 200 basis points lower than recent averages.
The vacancy rate trended upwards in the first half of the year, following two years of declines in 2020 and 2021. The rate ended the second quarter at 4.3 percent, up 30 basis points year over year.
Asking rents have advanced at a healthy rate to this point in the year. Average rents rose 2.7 percent in the second quarter to $1,476 per month. During the past year, rents jumped 11.5 percent.
Sales activity dipped slightly during the second quarter, although the number of transactions year to date is ahead of levels recorded during the same period in recent years. The median sales price in the first half of 2022 is roughly $127,000 per unit, while the median price in the second quarter topped $175,000 per unit.
Richmond Q1 Multifamily Market Insights: The pace of rent growth accelerates to start 2022
The Richmond multifamily market recorded rapid rent growth in the first quarter, even as the vacancy rate inched higher. Current conditions are considerably stronger than one year ago.
During the first quarter, the local vacancy rate rose 20 basis points to 3.8 percent. Despite the recent uptick, the rate has dropped 80 basis points year over year.
Asking rents continued to climb at the start of 2022. Average rents in Richmond rose 4.3 percent in the first quarter to $1,437 per month. Rents are up 14.1 percent in the past 12 months.
Transaction volume ticked lower, although activity levels to start 2022 are ahead of the pace recorded in recent years. The median sales price in the first few months of 2022 reached $116,400 per unit, as the bulk of the sales activity consisted of older, Class C properties.
Hampton Roads Q1 Multifamily Market Insights: Investment activity begins 2022 ahead of traditional pace
Vacancy in the Hampton Roads multifamily market rose during the first quarter, after several years of the rate trending lower as new construction lagged demand levels. Supply and demand are expected to be more closely aligned in 2022.
Vacancy rose 60 basis points during the first quarter, finishing the period at 3.4 percent. The rate started trending higher in the final months of 2021 but should level off by year end. The current rate is up only 40 basis points from one year ago.
Asking rents rose 2.4 percent in the first quarter, reaching $1,396 per month. Year over year, average rents have advanced 11.4 percent, supporting new development.
Multifamily investment activity cooled during the first quarter but is showing signs of gaining momentum. The median sales price to this point in 2022 is approximately $144,800 per unit, up 6 percent from the median price in 2021. Cap rates in the first quarter averaged 4.5 percent.
The Hampton Roads multifamily market posted gains throughout 2021 with consistent rent growth in every quarter. Vacancy levels remained tight in the region as absorption outpaced the deliveries of new units for the year.
Despite vacancy inching higher during the fourth quarter, the rate has dropped 70 basis points year over year, ending 2021 at just 2.8 percent. The rate has been steadily trending lower over the past four years.
Asking rents jumped during 2021, though the pace of growth tapered off during the fourth quarter. Asking rents rose more than 13 percent during the past year, ending 2021 at $1,368 per month.
Investor demand remained elevated in 2021, leading to continued momentum during the second half of 2021. The median sales price reached $136,000 per unit through the end of 2021 while cap rates averaged approximately 4.5 percent.
Richmond Q4 Multifamily Market Report: Four Straight Quarters of Tightening Vacancy in 2021
Apartment operating conditions in Richmond posted strong gains during the final quarter of 2021, with vacancy tightening and rents pushing higher. Developers struggled to meet demand during 2021, as absorption levels outpaced new supply growth. Deliveries and absorption will likely closely track one another in 2022, and vacancy is expected to tighten modestly.
The multifamily vacancy rate in Richmond dropped in all four quarters of 2021. During the final three months of the year, the rate fell 30 basis points to 3.6 percent. For the full year, vacancy tightened by 170 basis points.
An improving vacancy rate and accelerating renter demand for units sparked rent growth. In 2021, asking rents spiked 12.3 percent, ending the year at $1,378 per month.
Sales activity increased significantly during the fourth quarter of 2021, outpacing levels recorded in the first nine months of the year. Cap rates during the fourth quarter averaged 4.4 percent while the median price reached $160,800 per unit.
The Hampton Roads multifamily market posted extremely tight vacancy conditions in the second quarter, signaling the overall health of the market. Rents rose and per-unit sales prices pushed higher.
Vacancy dipped 40 basis points during the second quarter, with the rate reaching 2.6 percent. Year over year, vacancy has fallen 160 basis points.
Rent growth surged in the second quarter. Rents are up 10.9 percent year over year. Asking rents reached $1,310 per month at midyear.
Sales of apartment properties continued at a steady pace in the second quarter. Prices have pushed higher in response to improving operating conditions. The median price reached approximately $112,000 per unit in the first half of this year, while cap rates compressed to 5 percent on average.
Operating conditions in the Richmond multifamily market improved during the second quarter. Vacancy rates tightened considerably, with absorption outpacing new supply growth. Rents rose and investment activity accelerated.
Vacancy fell 60 basis points during the second quarter, with the rate dipping to 4 percent. Area vacancy is down 130 basis points year over year; the current rate is the lowest vacancy in the market in nearly 20 years.
Asking rents spiked 5.2 percent in the second quarter, reaching $1,324 per month. In the past year, rents in the area have pushed up 9.9 percent.
Sales activity gained momentum in the second quarter, fueled by improving property fundamentals. Cap rates have compressed, averaging 4.9 percent year to date, while the median price reached approximately $129,900 per unit.
RICHMOND, VIRGINIA (March 29, 2021) — NorthMarq’s Richmond investment sales team of Mike Marshall, managing director, Wink Ewing, managing director, and Ryan Rilee, associate, was recognized in the Mid Atlantic Real Estate Journal’s The Best of 2020 issue. The team received awards for “The Largest Multifamily Sale of 2020 (see the full release on the $167 million sale) as well as earning a spot as a team in the “Top Mortgage Brokers of 2020” category.
The “Best of 2020” awards companies/brokers with large developments, major financial transactions, largest office, retail and industrial transactions, most unusual architectural & construction projects.
Better Housing Coalition receives 2020 Community Involvement Grant from NorthMarq’s Richmond office
MINNEAPOLIS, MINNESOTA (December 29, 2020) – NorthMarq’s Richmond office presented Better Housing Coalition (BHC) with a 2020 Community Involvement Grant. The organization is the Richmond region’s largest nonprofit community development corporation.
BHC provides free, voluntary support programs to residents living in a BHC rental community to help them achieve better academic, economic or health outcomes. They proudly serve nearly 2,500 residents in 16 communities throughout the metro Richmond area and have helped over 200 first-time homebuyers build family wealth. Their mission is that every person, regardless of economic status, should have access to quality housing choices. Their impact centers around better homes, better communities, and better lives.
“Those of us in the multi-housing industry have been fortunate to participate in one of the most resilient and well-performing asset classes in the US. It’s only fitting that we find a way to give back within our industry. We believe in BHC’s misson and support their leadership in the Richmond region.” said Keith Wells, managing director of NorthMarq’s Richmond office.
To deal with the Covid-19 pandemic, BHC formed a task force of representatives from across the organization to address concerns and take proactive steps in the interest of keeping its staff and residents healthy. They are taking precautionary measures as recommended by the Virginia Department of Health and the Centers for Disease Control. These measures include increased frequency of cleaning common areas, greater sanitizing of high-touch surfaces, and posting virus prevention posters in all bathrooms, kitchens, and community rooms. The organization has also installed a supply of tissues, hand sanitizers, and disinfectant wipes in the main office reception area, and all leasing offices.
“BHC is delighted to be the beneficiary of NorthMarq’s generosity and commitment to affordable housing in the Richmond, Virginia area. The global health pandemic has made clear that safe, stable housing is more important than ever, especially for limited-income families and seniors in our region. We appreciate NorthMarq’s investment in our mission,” said Stacie Birchett, vice president — external affairs.
In the third year of NorthMarq’s Community Involvement Grant program, the company has awarded grants to 18 non-profits in 16 cities. The program solicits nominations from each local office, and had an increase of 20 percent from 2019, with a total of 18 non-profits focused on affordable housing and reducing homelessness receiving these grants in 2020.
Richmond-Hampton Roads Q3 Multifamily Market Report: Transaction Activity Picks Up During Third Quarter
The Richmond-Hampton Roads, Virginia, market continues to record robust renter demand for apartments. Despite some economic volatility during the second quarter, current vacancies and rents are within recent ranges. Rent collections to this point have been consistent, closely tracking levels from one year ago.
During the third quarter, the local vacancy rate rose 10 basis points, reaching 4.6 percent.
Year over year, asking rents are up 3.5 percent, ending the third quarter at $1,141 per month.
The investment market accelerated in the third quarter. The median price in properties sold thus far in 2020 is $108,400 per unit, but in larger property sales, the median price is $116,000 per unit. Cap rates have averaged in the low- to mid-5-percent range in 2020.
NorthMarq expands Investment Sales platform into Mid-Atlantic region
MINNEAPOLIS, MINNESOTA (August 12, 2020) — NorthMarq’s multifamily investment sales platform continues to grow across the country, with the latest addition in the Mid-Atlantic region, covering the Washington, D.C. metro, Hampton Roads, and Richmond, Virginia markets. Wink Ewing and Michael Marshall joined NorthMarq as managing Directors with Ryan Rilee as associate vice president to form a new multifamily investment sales team. They will operate from the Richmond office and partner with NorthMarq’s existing debt and equity team led by Keith Wells, managing director.
Trevor Koskovich, president-Investment Sales, is leading the business expansion, which added six new offices to-date in 2020. “We targeted the Mid-Atlantic region because we knew that the debt and equity team was interested in this type of partnership. Once we identified Wink, Mike, and Ryan as our team, we knew we had found our next location for the platform’s growth.”
Marshall has more than 30 years of experience in the real estate industry, with 20 years in the multifamily investment sales business. He has completed the sale of over 50,000 apartment units, valued in excess of $7.0 billion. Ewing has cultivated many long-lasting relationships across the Mid-Atlantic markets, with more than 16 years of experience and more than $3 billion in transactions. They both joined NorthMarq after working for Newmark Knight Frank in the DC Metro and Richmond area.
Rilee brings more than 10 years of CRE experience, advising clients on everything from local sub-markets to national capital markets. He previously worked for One South Commercial in investment sales and with CBRE in asset services.
“NorthMarq was a clear choice with its strong debt and equity platform and the aggressive growth of the Investments Sales brokerage across the country. The corporate culture, along with the ability to structure a great team into the next real estate cycle, was very attractive for me and for our clients,” said Ewing.
The Mid-Atlantic office will offer investment sales coverage in conjunction with the other NorthMarq offices across the country to market multifamily assets and help clients identify the best financing structure. The NorthMarq platform now includes teams in 14 states, with more than $2 billion in transaction volume.
NorthMarq Capital’s Richmond office bolsters its production team with new vice president
RICHMOND (January 2, 2018) – NorthMarq Capital, a leader in financing commercial real estate throughout the United States, announced today that Reina Abboud has joined its Richmond office serving as vice president.
In her new role at NorthMarq, Abboud will be responsible for the origination, underwriting, marketing and closing of commercial real estate loans. These commercial real estate transactions involve both debt and equity solutions for clients, sourced through a variety of lending sources including life insurance companies, conduit lenders, agency lenders, commercial banks and credit unions.
Abboud comes to the Richmond team after serving as a financial analyst for Phillips Realty Capital, where she underwrote and successfully closed over 20 transactions that totaled over $230 million of debt and equity. Abboud earned her master’s degree in real estate finance and development from Georgetown University.
“We are very excited to have Reina join our team,” said Keith Wells, senior vice president/managing director based in NorthMarq’s Richmond office. “Her energy, intellect and fresh approach, combined with NorthMarq’s unmatched lending partners, will allow her to deliver ‘best in class’ innovative financing results to our clients.”