Integra 14th AnnualReal Estate Trends & Investment Criteria Forecast: 2016
Property Sector: Multifamily
Kansas City Multifamily Use
Presented by: Eric Owens– Integra Realty Resources
Moderator: Krista Klaus – KMBZ Business Channel at Entercom Radio
Panel Members:Paul Worcester – Worcester InvestmentsGeorge Birt – Downtown DevelopersSteve Coon – EPC Real Estate GroupBrenner Holland – Hunt MidwestLaurel Wallerstedt – Berkadia, LLC
The Best, The Worst, and The Local Market
Top Three Urban Multifamily Markets By Vacancy – Class A1. Las Vegas, NV – 1.62%2. New York, NY – 2.60%3. Detroit, MI – 2.61%
…and the Bottom Three Urban Multifamily Markets By Vacancy – Class A57. Baltimore, MD – 15.40%58. Charleston, SC – 16.00%59. Raleigh, NC – 22.00%
National Average: 7.25%
Local Market – Class A…47. Kansas City, MO/KS – 9.36%
Source: IRR Viewpoint 2016
The Best, The Worst, and The Local Market
Top Three Suburban Multifamily Markets By Vacancy – Class A1. Dayton, OH – 2.32%2. Sacramento, CA – 2.39%3. Syracuse, NY – 2.65%
…and the Bottom Three Suburban Multifamily Markets By Vacancy – Class A59. Greensboro, NC – 8.74%60. Washington, DC – 9.40%61. Raleigh, NC – 11.00%
National Average: 4.78%
Local Market – Class A…45. Kansas City, MO/KS – 5.58%
Source: IRR Viewpoint 2016
Kansas CitySales Volume & Cap Rates
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
7.50%
8.00%
8.50%
9.00%
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
$900.00
$1,000.00
2009 2010 2011 2012 2013 2014 2015
Cap Ra
te
Sales Vo
lume (in
millions)
All Classes
Sales Volume Cap Rate Linear (Sales Volume) Linear (Cap Rate)
Major SubmarketsKansas City Metro Area
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
100,000
105,000
110,000
115,000
120,000
125,000
2008 2009 2010 2011 2012 2013 2014 2015
Kansas City Metro Area – All Classes
Supply (units) Vacancy Source: REIS
Major SubmarketsNorthland
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
26,000
27,000
2008 2009 2010 2011 2012 2013 2014 2015
Northland – All Classes
Supply (units) Vacancy Source: REIS
Major SubmarketsWyandotte
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2,500
3,000
3,500
4,000
4,500
5,000
5,500
2008 2009 2010 2011 2012 2013 2014 2015
Wyandotte – All Classes
Supply (units) Vacancy Source: REIS
Major SubmarketsNorth Johnson County
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
25,000
25,500
26,000
26,500
27,000
27,500
28,000
28,500
29,000
29,500
30,000
2008 2009 2010 2011 2012 2013 2014 2015
North Johnson County – All Classes
Supply (units) Vacancy Source: REIS
Major SubmarketsSouth Johnson County
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
5,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000
21,000
23,000
2008 2009 2010 2011 2012 2013 2014 2015
South Johnson County – All Classes
Supply (units) Vacancy Source: REIS
Major SubmarketsJackson County
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
2008 2009 2010 2011 2012 2013 2014 2015
Jackson County – All Classes
Supply (units) Vacancy Source: REIS
Major SubmarketsCBD/Midtown
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
2008 2009 2010 2011 2012 2013 2014 2015
CBD/Midtown – All Classes
Supply (units) Vacancy Source: REIS
2015 Transactions
Carrington Park• Year Built – 2007• Neighborhood ‐ Northland• Class A• Sale Date – August 19, 2015• Sale Price ‐ $39,700,000• Price Per Unit ‐ $133,221• Units – 298• Cap Rate – 5.70%• Occupancy Rate – 98.0%• Buyer – STAR Carrington KC, LLC• Seller – Barrytown Apartments, LLC
The Havens of Prairie Trace• Year Built – 2014• Neighborhood – South Johnson County• Class A• Sale Date – July 29, 2015• Sale Price ‐ $44,500,000• Price Per Unit ‐ $159,107• Units – 280• Cap Rate – 5.25%• Occupancy Rate – 96.0%• Buyer – Phoenix II, LLC• Seller – Mid‐America Apartments, L.P.
2015 Transactions
The Manor Homes of Arborwalk• Year Built – 2006• Neighborhood – Lee’s Summit• Class A• Sale Date – March 1, 2015• Sale Price – $37,250,000• Price Per Unit – $133,036• Units – 280• Cap Rate – 5.50%• Occupancy Rate – 97.0%• Buyer – Arbor Development, LLC• Seller – MAR Arborwalk, LLC
2015 Transactions
New Projects
ARTerra• Developer ‐ Copaken Brooks and
The Koman Group• Location – 21st & Wyandotte • $24 million project• Crossroads District• Class A Multifamily Development• 125 Residential Units, 12 stories• Enclosed Parking – 153 parking spaces
One Light Tower• Developer – The Cordish Company• $79.2 million project• Grand Opening – December 2015• Class A Multifamily Development• Location – 13th & Walnut• 25 Stories, 307 units• Amenities• Two Light
New Projects
East 9 Pickwick Plaza• Developer – Gold Crown Properties• East 9 Pickwick Plaza• Located – 10th & Oak Street• Renovation started November 2015• $65 million project• 260 market rate apartments• Year Built – 1930• Amenities• Tax Abatement, Tax Credits
New Projects
Paul WorcesterWorcester Investments
•Founded 2006
•Moved to KC 2007
•Multifamily
•3,200 units
•INC 5,000
•125 employee team
•Summit on Pryor
•1220 Washington
George BirtDowntown Developers
Projects
RMwest Apartments
RMwest Phase II
Steve CoonEPC Real Estate Group
The District | Lenexa City Center
Avenue 80 | Overland Park
17 Madison | Westside, Kansas City, MO
Brenner HollandHunt Midwest Real Estate Development, Inc.
The Vue | Overland Park
Mission 106 | Leawood
Benton House | Metro KC
Laurel WallerstedtBerkadia
$26 BILLIONBerkadia’s 2015 loan origination volume surpassed $20 billion, while investment sales exceeded $6 billion.
$86 BILLIONTotal historical sales by our investment sales advisors exceed $86 billion.
$18 BILLIONSince 2012, our investment sales division has closed more then 1,700 transactions, totaling $18 billion.
$235 BILLIONOne of the largest loan and servicing portfolios worldwide at $235 billion.
16,500 TRANSACTIONSBerkadia’s 2015 loan origination volume surpassed $20 billion, while investment sales exceeded $6 billion.
65 OFFICES65 offices nationwide, covering all major markets.
For Berkadia’s national and market‐specific research reports, visitwww.ApartmentUpdate.com or contact Laurel Wallerstedt at (816) 531‐4345.
5.0%
5.2%
5.4%
5.6%
5.8%
6.0%
$800
$825
$850
$875
$900
$925
2012 2013 2014 2015* 2016***Estimate; **Forecast | Source: Berkadia, Axiometrics, Moody's Analytics
ASKING RENTS AND VACANCY
Waterstone372 Units | Built 1969$13.0 M | 5.9% CapKansas City, KS
Englewood152 Units | Built 1972$5.0 M | 8.1% CapKansas City, MO
Villas at Carrington Square278 Units | Built 2008$45.7 M | 5.4% CapOverland Park, KS
Apartments at Bristol Park119 Units | Built 2009
$7.9 M | 7.1% CapGrain Valley, MO
Oak Park Village510 Units | Built 1972$35.4 M | 6.4% CapOverland Park, KS
Liberty Court64 Units | Built 1980
$3.2 M | 7.1% CapLiberty, MO