multifamily advisory group | east region we know des moines€¦ · companies” in a business wire...

COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 1www.ColliersMultifamilyEast.com

Multifamily Advisory Group | East Region

Accelerating success.

WE KNOW DES MOINESSpecialized Real Estate Investment Services

COLLIERS INTERNATIONALP. 2 MULTIFAMILY ADVISORY GROUP COLLIERS INTERNATIONAL MULTIFAMILY ADVISORY GROUP P. 3www.ColliersMultifamilyEast.com www.ColliersMultifamilyEast.com

WE KNOW WHO YOU AREDes Moines is the capital and the most populous city in the U.S. state of Iowa. It is also the county seat of Polk County. It was incorporated on September 22, 1851 as “Fort Des Moines,” which was shortened to “Des Moines” in 1857. It is located on and named after the Des Moines River, which likely was adapted from the French colonial name, Rivière des Moines, meaning “River of the Monks.” The five-county metropolitan area is ranked 91st in terms of population in the United States with 599,789 residents according to the 2013 estimate by the United States Census Bureau.

Des Moines is a major center of the U.S. insurance industry and has a sizable financial services and publishing business base. The city was credited as the “number one spot for U.S. insurance companies” in a Business Wire article and named the third-largest “insurance capital” of the world. The city is the headquarters for the Principal Financial Group, Athene USA insurance, the Meredith Corporation, Ruan Transportation, EMC Insurance Companies, and Wellmark Blue Cross Blue Shield. Other major corporations such as Wells Fargo, Voya Financial, Nationwide Mutual Insurance Company, ACE Limited, Marsh, Monsanto and Pioneer Hi-Bred have large operations in or near the metro area. In recent years Microsoft, Hewlett Packard and Facebook have established data processing and logistical facilities in the Des Moines metro. Forbes magazine ranked Des Moines as the “Best Place for Business” in both 2010 and 2013. In 2014, NBC ranked Des Moines as the “Wealthiest City in America,” according to its criteria.

Des Moines is an important city in U.S. presidential politics: as the capital of the state, it is the site of the first caucuses of the presidential primary cycle. Many presidential candidates set up campaign headquarters in Des Moines. A 2007 article in The New York Times said “if you have any desire to witness presidential candidates in the most close-up and intimate of settings, there is arguably no better place to go than Des Moines”.

*Source: https://en.wikipedia.org/wiki/Little_Rock,_Arkansas


Multifamily Absorption and Supply

Annual 2Q16 Annual Forecast

2013 2014 2015 Market National 2016F 2017F 2018F 2019F 2020F

Total Units Absorbed

454 1,730 1,242 1,355 322,402 2,556 1,792 973 387 285

New Supply 1,206 1,330 1,843 958 350,290 2,075 1,756 838 700 782

Inventory Growth 1.8% 2.3% 4.1% 3.2% 1.4% 2.8% 4.9% 1.7% 1.3% 1.4%

Market Employment and Permitting

Annual June-16 Annual Forecast

2013 2014 2015 Market National 2016F 2017F 2018F 2019F 2020F

Employment (000s) 335.3 343.5 348.8 358.3 144,185.0 354.3 358.7 363.5 370.0 376.7

Job Gain (000s) 8.4 8.2 5.2 7.2 2,411.0 5.5 4.4 4.8 6.5 6.7

Job Growth (%) 2.6% 2.4% 1.5% 2.1% 1.7% 1.6% 1.2% 1.3% 1.8% 1.8%

Total Residential Permitting 4,926 4,414 5,444 5,923 1,058,258 6,242 4,451 3,574 3,819 4,228

Relative Change 18.3% -10.4% 23.3% 46.1% 3.9% 14.7% -28.7% -19.7% 6.9% 10.7%

Single Family Units Permitted 3,336 2,955 3,495 3,185 658,769

Relative Change 18.8% -11.4% 18.3% 1.4% 10.9%

Multifamily Units Permitted 1,480 1,398 1,810 2,618 370,060

Relative Change 10.3% -5.5% 29.5% 212.4% -6.6%

Multifamily as a % of Total 30.0% 31.7% 33.2% 44.2% 35.0%

Demand/Supply Ratio Job Gain / Total Residential Units Permitted 2.0 1.7 1.2 1.8 2.4 1.0 0.7 1.1 1.8 1.8

Job Gain / Single Family Units Permitted 3.0 2.5 1.8 2.3 4.1

Job Gain / Multifamily Units Permitted 6.3 5.5 3.8 8.6 6.1

WE KNOW YOUR MARKET

RECENT SALES

SUPPLY AND DEMAND

Source: AXIOMetrics. RCA

Market Survey Results and ForecastsSequential Month Annual

3Q15 4Q15 1Q16 2Q16 Jul-16 2014 2015 2016F 2017F 2018F 2019F 2020F

Effective Rent Per Unit $910 $915 $917 $936 $964 $908 $911 $935 $964 $998 $1,031 $1,058

Per Sq. Ft $1.00 $1.00 $1.01 $1.03 $1.04 $1.00 $1.00 $1.02 $1.06 $1.09 $1.13 $1.16

Effective Rent Growth - Annually -0.6% 0.1% 1.0% 2.9% 4.8% 1.6% 0.3% 2.6% 3.1% 3.5% 3.3% 2.6%

Effective Rent Growth - Quarterly 0.0% 0.6% 0.2% 2.1%

Occupancy Rate 95.8% 94.6% 95.3% 96.6% 96.3% 95.5% 95.2% 95.9% 96.0% 96.2% 95.9% 95.2%

Occupancy Change - Annually -0.6% -1.0% 0.5% 0.9% 1.3% -0.1% -0.3% 0.7% 0.1% 0.1% -0.3% -0.7%

Occupancy Change - Quarterly 0.1% -1.2% 0.8% 1.3%

Economic Concessions Concession Value $-12.95 $-14.51 $-10.56 $-3.77 $-2.59 $-12.61 $-13.11

As a % of Asking Rent -1.5% -1.6% -1.1% -0.4% -0.3% -1.4% -1.5%

According to the Bureau of Labor Statistics, job growth in Des Moines-West Des Moines, IA Metro Area was 2.1% in July 2016, reflecting 7,200 jobs added during a 12-month period. The metro job growth figure was above the national number of 1.7%.

Axiometrics forecasts Des Moines-West Des Moines, IA Metro Area’s job growth to be 1.3% in 2017, with 4,425 jobs added. Job growth is expected to average 1.6% from 2018 to 2020, with an average of 5,988 jobs added each year.

On the supply side, permits for 2,821 multifamily units were issued in the 12 months ending in July 2016, up 1,011 units from the prior year’s sum. In terms of total residential housing, 6,353 units were permitted in the 12 months ending July 2016, an increase of 909 units from the prior year’s total.

Date Property Name Address City Units Year Built Price in $ $/Units

Apr-16 The Flats 3000 University Ave West Des Moines

331 1973 / 2016 9,985,000 30,166

Mar-16 The Grove Ames/Copper Beech Ames

1407 S Grand Ave Ames 425 2011 48,934,995 115,141

Nov-15 South Duff Community Park 416-528 Billy Sunday Rd Ames 209 2004 21,300,000 101,914

Nov-15 Metro Lofts 100 2nd Ave Des Moines 111 2010 3,500,000 31,532

Nov-15 Ashbrooke Apts 317 NE Delaware Ave Ankeny 196 1990 12,400,000 63,265

Oct-15 Featherstone Townhomes 901 N 35th St Council Bluffs 147 1971 6,686,500 45,486

Oct-15 Triple Crown 1103 Greenway Ct Altoona 76 1982 4,109,000 54,066

Oct-15 Hillcrest 7201 SE 5th St Des Moines 90 1977 4,250,000 47,222

Sep-15 University Plains 4912 Mortensen Rd Ames 144 2001 / 2015 18,500,000 128,472

Jan-15 Wedgewood Apartments 2555 Wedgewood Road Des Moines 72 1975 2,775,000 38,542


PIPELINE MAP

“We were extremely pleased with the East Region team and its ability to attract an incredible amount of interest in our 3 assets. The number of offers received and the end results exceeded our expectations. They have a talented group who was a pleasure to work with. Their performance stands out against any of the groups we work with nationally.”

Nels Billsten, Vice President | CORE Realty Holding Management

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21

16

13 22

18 2

4

19

5

15

26

29

PIPELINE# Name Status Owner Address Market Units1 Aspire Apartments Phase II Under Construction Signature Commercial RE Group 6950 Stagecoach Dr Dallas County 1762 BelleMeade Apartments Phase II Under Construction The Richdale Group 204 S 64th St Dallas County 1683 Bici Flats Under Construction Nelson Construction &

Development1405 SE 1st St McKinley School-Columbus 154

4 Cadence Apartments Under Construction Hubbell Realty Company 6320 Merle Hay Rd Outer West Des Moines/Urbandale

195

5 Carman Estates Under Construction Jerry's Homes Inc 2314 E Porter Ave Easter Lake Area 966 Cascades at Jordan Creek - Phase

IIUnder Construction Perry Reid Properties 8350 Cascade Ave Dallas County 231

7 City Square Lofts Under Construction Hansen Real Estate Services 210 E Walnut St East Village 1248 Cityville on 9th Street - Phase II Under Construction Hubbell Realty Company 520 SW 9th St Downtown Des Moines 2289 Confluence On 3rd Under Construction Roers Investments 103 SW 3rd St Downtown Des Moines 21110 Court Avenue Apartments Under Construction Vine Ronald 420 Court Ave Downtown Des Moines 8211 Eagle View Lofts Under Construction Hansen Real Estate Services 511 Shaw St East Village 12012 East Village Apartments Under Construction Tim Rypma 219 E Grand Ave East Village 9813 Fieldstream Apartments Phase II Under Construction Edward Rose & Sons 3289-3305 NW

Brookstone LnOuter Ankeny/Saylorville 168

14 Harbach Lofts Under Construction Harbach Building Llc 300 SW 5th St Downtown Des Moines 10315 Havenwood Under Construction Redwood Living 1250 SW State St Outer Ankeny/Saylorville 10616 Ironwood - Phase II Under Construction Haverkamp Properties 2570 1st Ave S Outer SE Des Moines N 14717 Jackson Crossing Under Construction Neighborhood Development

Corporation100-150 Jackson Ave McKinley School-Columbus 172

18 Jordan West Apartments Under Construction Commercial Investment Properties

360 Bridgewood Dr Dallas County 180

19 Linden Oaks Under Construction Redwood Living 400 Adventureland Dr Outer SE Des Moines N 9820 R&T Lofts Under Construction TWG Development 715 Locust St Downtown Des Moines 16221 Residences at 62W Under Construction R&R Realty Marketing Group 6000 NW 62nd Ave Outer West Des Moines/

Urbandale137

22 The Cove at Prairie Trail Phase II Under Construction Caliber 1918 SE Lesina Ln Outer Ankeny/Saylorville 8623 The Edge at Gray's Landing Under Construction Sherman Associates, Inc. 320 SW 9th St Downtown Des Moines 9024 The Equitable Lofts Under Construction Foutch Brothers 604 Locust St Downtown Des Moines 14625 The Verve Under Construction Hubbell Realty Company 700 E 4th St East Village 12326 Fort Des Moines Proposed Blackbird Investments 6700 Chaffee Rd Outer SE Des Moines S 14227 Fourth and Court Proposed City of Des Moines 4th And Court

AvenuesDowntown Des Moines 200

28 The Nexus at Gray's Landing Proposed Sherman Associates, Inc. 415 SW 11th St Downtown Des Moines 14229 Village of Ponderosa Proposed Evercore Companies LLC Bluestem Circle &

CrescenOuter West Des Moines/Urbandale

500

30 619 Grand Ave Proposed Nelson Construction Services 619 Grand Ave Downtown Des Moines 175Total Units 4,760

Source: CoStar

1138

23

7

12

17

914

24

25

20

28

27

30

10


WHO WE AREOne of the largest and most

experienced teams of multifamily

specialists in the industry

Units sold since 2011

30,000MORE THAN

Group gross transaction value in since 2011

$2.0B

Dedicated Multifamily Professionals & Advisors

50MORE THAN

Expansive geographic footprint

20COVERING OVER

STATES

WE CAN HELPAs an investor in multifamily properties, you need a firm that provides experience, broad reach and the ability to market an asset no matter how challenging the economic environment. You need a team that specializes in your market you need The East Region Multifamily Advisory Group.

Colliers International has one of the largest and most experienced teams in the industry, strategically located in key markets throughout North America. Our combination of market dominance, expertise, and singular focus, make us uniquely successful in helping our clients achieve their disposition objectives.

How are we able to bring together the skills and tools necessary to complete challenging assignments? Our East Region Multifamily Advisory Group is connected by purpose and focus. Our team is dedicated to sharing information on market opportunities, capital sources and buyers/sellers to achieve the best results for our clients.

COLLIERS INTERNATIONALP. 10 MULTIFAMILY ADVISORY GROUP www.ColliersMultifamilyEast.com

www.ColliersMultifamilyEast.com

To learn more, scan this with a QR code reader or visit:

AT YOUR SERVICE

Gabe TovarASSOCIATE | EAST REGION

[email protected] +1 816 556 1161

Will MathewsPRINCIPAL | EAST REGION

INSTITUTIONAL CLIENT GROUP


Brooks ColquittASSOCIATE | EAST REGION


Craig BrownASSOCIATE | EAST REGION


Bob Galamba, CCIM, SIOR

SENIOR VICE PRESIDENT | EAST REGION


multifamily advisory group | east region we know des moines€¦ · companies” in a business wire...

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