Not Just “A Moment”

This article originally appeared on the CRE SUMMIT BLOG.

To say that the multifamily sector is “having a moment” isn’t just an understatement, it also happens to be wrong. Anyone who has been paying attention knows that the multifamily sector has long enjoyed strong demand from both residents and investors. Rising rents and strong absorption, even through a global pandemic, makes it clear that resident demand is not going away. That strong resident demand, combined with concerns about 1031 exchanges and record low interest rates, has driven investor demand (and with it, prices) for assets to dizzying heights, by one account as many as 50% of the buyers in the market for multifamily assets are 1031 investors looking for a safe place to park capital. This doesn’t mark a sector that is merely “having a moment”, rather, these realities mark a sector that presents clear opportunities for investors that are willing to work to find and develop deals.

What should investors do when competition for deals is fierce and growing? The answer may sound basic, bordering on catchphrase, but the key is a diverse approach to investing. Burlington Capital has long been in the business of both acquiring existing multifamily assets and developing new properties, and that approach has become even more important in today’s environment. But let’s be clear, a diverse approach doesn’t just mean buying or developing, for Burlington Capital, it also means spreading investment between affordable housing, workforce housing, and Class A properties. A diverse portfolio of new construction and existing properties in multiple asset classes puts investors in the strongest position to weather the storms caused by external forces like a global pandemic.

To that end, in 2019 the Burlington Capital Real Estate Team embarked on the development of a premier, 173-unit development project near UNMC and the Blackstone District. The development team, led by Dominic Vaccaro and Zach Reinhardt, worked to develop a design for the project that fits the historic context in which the project is situated while bringing all the modern amenities and design features residents have come to appreciate. With an anticipated opening in 2022, Burlington Capital is excited for residents to find their gem at the corner of 38th & Leavenworth.

Far from being simply a beautiful building, by taking advantage of opportunity zone benefits, the investment in this new development project continues Burlington Capital’s commitment to a diverse portfolio of high-quality real estate assets.

 

Burlington Capital is an alternative investment management firm that creates and pursues innovative business ventures through its experience, knowledge, and relationships in the areas of real estate, international agribusiness, and private equity.

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