953-959 w Diversey 60614

Development over the tracks, we love to see it 🚀

Yes, the time for workforce housing and BTR development is now….there’s a saying in the real estate development business… “entitle through the downturn” We are doing that very thing. We created a gap in our pipeline, where all new projects are in various phases of development and entitlement, and won’t start construction for 1-3 years from now. Of these projects, most won’t deliver units for another 3-5 years in most cases. Our timing for the UTH program is working such that we are expecting to deliver units and projects into an even more supply constrained market on top of delivering units into the supply constrained workforce housing space. “….The Time Is Now Today’s conditions could create a major hole in new supply a few years from now. Multifamily and BTR projects take roughly two years to build, leading one to conclude that come 2025, very little new supply will be hitting the market if these conditions hold. If rents are a function of supply and demand, and conservatively we hold demand relatively constant over the next few years, then operators who are able to get started today may see well above-average returns a few years from now (though this is not investment advice). On the spend side of the project pro forma, supply reduction can only ease construction cost dynamics. No wonder that groups I talk to who believe most in their own decision making and instincts on the market are trying as hard as they can to get projects moving.”

Vertical software investing has been dominated by Private Equity. They’ve made a killing in the process (just look at Constellation as an example). More VC’s need to think about jumping into the category, immediately 🧵

Brian, how do we convince the county/Beckham/Mas to build an ultra dense housing project on the rejected stadium site 👀👀