Sunday, December 10, 2017

U.S. Home Flipping Returns Drop to Two-Year Low in Q3 2017

Daren Blomquist
IRVINE, CA — ATTOM Data Solutions, curator of the nation’s largest multi-sourced property database, released its Q3 2017 U.S. Home Flipping Report, which shows that single family homes and condos flipped in the third quarter yielded an average gross flipping profit of $66,448 per flip, representing an average 47.7 percent return on investment for flippers — down from 48.7 percent in the previous quarter and down from 51.2 percent in Q3 2016 to the lowest average gross flipping ROI since Q2 2015.

 The report also shows that 48,685 single family homes and condos were flipped nationwide in the third quarter, a home flipping rate of 5.1 percent — down from 5.6 percent in the previous quarter and unchanged from a year ago.

Year-to-date through the third quarter of 2017 a total of 153,727 single family homes and condos nationwide have been flipped, nearly equal with the 153,854 flipped through the first three quarters of 2016, when the number of homes flipped increased to a 10-year high.

 “Home flipping profits continue to be squeezed by a dwindling inventory of distressed properties available to purchase at a discount and increasing competition from fair-weather home flippers often willing to operate on thinner margins,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.

“A more than nine-year low in the ratio of flips per investor is evidence of this increased competition, which is pushing many investors to new metro areas that often have weaker market fundamentals but also come with a bigger supply of discounted distressed properties to flip.”

For more information on this news release, please contact:

Jennifer von Pohlmann
 Office: 949-502-8300 ext 139

Franklin Street Closes Sales of Two Metro Atlanta Apartment Complexes

Jake Reid
ATLANTA, GA – Franklin Street announced the sales of two multifamily apartment properties in Metro Atlanta for a combined $14.35 million.

 Salem Chase Apartments in Conyers, Georgia, and Delta Appletree Apartments in southwest Atlanta were both purchased by out-of-state investors, indicating how Atlanta’s strong metro growth is continuing to attract the interest of individuals across the country.

Franklin Street’s Jake Reid and Roger Schoerner represented the sellers.

 Franklin Street arranged the $5.65 million sale of the Salem Chase Apartments, a 64-unit rental community located at 50 Salem Chase Drive -  roughly 20 miles east of downtown Atlanta.The complex is made up of well-maintained one, two, and three-bedroom units and sits on nearly 10 acres.

The property is within walking distance of retail and restaurants, and a few miles from Stonecrest Mall, Warner Brother movie studios, and the rapidly expanding Stonecrest Sports Complex. The buyer, from New York, expects to see continued upside as the surrounding area improves.

 “Secondary markets appeal to investors seeking a stronger yield as they usually consist of properties outside of the investment criteria of many buyers, helping investors avoid greater competition,” said Reid, a senior director for Franklin Street's multifamily brokerage team in Atlanta. “The record setting pricing of this asset illustrates that buyers are willing to spend a premium to get a physically superior investment at a lower cap rate.”

Roger Schoerner
 Franklin Street arranged the $8.7 million sale of Delta Appletree Apartments, a 210-unit complex located at 2328 Campbellton Road in Atlanta. The transaction set a new pricing high for the southwest Atlanta submarket.

Franklin Street represented the New Jersey-based seller in this transaction and worked with the lender to illustrate the operational upside, resulting in strong agency terms for the buyer.

 “Delta Appletree represents a great property for investors seeking markets with limited new construction and shrinking amounts of affordable housing,” said Schoerner, an associate in Franklin Street’s Atlanta office. 

“High construction costs create an economic barrier to entry to more affordable markets, driving increased investor demand to markets just beginning to witness the potential rent growth.”

For more information on this transaction, please contact:

Britni Johnson • The Wilbert Group
1720 Peachtree St., Suite 350 • Atlanta, Ga. 30309
M: 912-580-7241
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HFF announces sale of 150,148-SF grocery-anchored Inland Empire shopping center

Perris Plaza Shopping Center, Perris, CA     Photo by Patrick Tang of Take Flyt Imaging

 NEWPORT BEACH, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announces the sale of Perris Plaza, a 150,148-square-foot, grocery-anchored dominant shopping center in the Inland Empire community of Perris, California.

Gleb Lvovich
 The HFF team marketed the property on behalf of the seller, Coudures Family, LP.  Nuevo Perris, LLC, which is a joint venture among Wood Investments, a Laguna Beach-based real estate investment and development company; Joel Farkas, a real estate development company based in Colorado; and SandTree Holdings, an El Segundo-based private real estate investment firm, purchased the asset.

 The 97.6-percent-leased Perris Plaza is the dominant center in the region and features a mix of national and regional retailers, including Food 4 Less, Regency Theatres, Burger King, IHOP, Del Taco and Starbucks.

  The sale includes two entitled land pads that would allow the development of additional retail space, and the buyer plans to expand the shopping center to almost 300,000 square feet with the addition of promotional retailers and restaurants through leasing that has already commenced. 

Situated on 38.24 acres at 1688 North Perris Boulevard, Perris Plaza is located on one of Perris’ major thoroughfares and adjacent to Interstate 215, which provides daily traffic counts of more than 161,500 vehicles per day.

 The HFF retail investment advisory team representing the seller included Gleb Lvovich and Bryan Ley.

 “Perris Plaza generated solid interest due to its strong-performing grocery anchor, development upside and position within the growing Inland Empire region in Southern California,” Lvovich said.
 “The sale of Perris Plaza represents our team’s experience in locating new capital sources to acquire complex retail projects along the West Coast,” Ley added.

For more information on this transaction, please contact:

Kristen Murphy
Director, Public Relations
One Post Office Square Suite 3500
Boston, MA
T: 617-848-1572
 |  M: 617-543-4873

Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.