ROCK APARTMENT ADVISORS ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA Rock is the preeminent Apartment brokerage firm in the mid-south with over $1.5 billion in sales INTRODUCTION.
Download ReportTranscript ROCK APARTMENT ADVISORS ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA Rock is the preeminent Apartment brokerage firm in the mid-south with over $1.5 billion in sales INTRODUCTION.
ROCK APARTMENT ADVISORS ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA Rock is the preeminent Apartment brokerage firm in the mid-south with over $1.5 billion in sales 1 1 INTRODUCTION ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA 2 Why invest in Apartments? 2 TUSCALOOSA APARTMENT MARKET Three Measures ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA INFLUENCERS 3 FUNDAMENTALS TRANSACTIONS TUSCALOOSA 3 APARTMENT MARKET Economic Influencers for Apartment Investors Focus ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA University 4 Housing Shortage Demographics TUSCALOOSA 4 APARTMENT MARKET 5 TUSCALOOSA APARTMENT MARKET 5 ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA Enrollment and On-Campus Housing 6 Freshman Living on Campus UG Living on Campus 70.40% 23.70% -0.93% 72.00% 25.00% 4243 -2.71% 70.00% 26.00% 10.95% 4367 2.92% 91.00% 29.00% 21081 8.27% 4463 2.20% 91.00% 29.00% 5.75% 22341 5.98% 4673 4.71% 88.80% 29.80% 1685 6.24% 23700 6.08% 4999 6.98% 90.70% 29.40% 30,232 1533 5.34% 24884 5.00% 5348 6.98% N/A 29.70% 31,747 1515 5.01% 26234 5.43% 5513 3.09% N/A N/A School Year Total Enrollment Number Change Percent Change Undergraduate Enrollment UG % Change 2003 20,290 2004 20,929 639 3.15% 16568 4.28% 4361 2005 21,793 864 4.13% 17550 5.93% 2006 23,838 2045 9.38% 19471 2007 25,544 1706 7.16% 2008 27,014 1470 2009 28,699 2010 2011 15888 Graduate Enrollment Grad % Change 4402 TUSCALOOSA 6 APARTMENT MARKET ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA 7 • 90% occupancy for total rental market prior to storm (of approximately 25,000 units) TUSCALOOSA 7 APARTMENT MARKET 8 TUSCALOOSA APARTMENT MARKET 8 ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA Alabama Demographics of 20-34 year olds per MSA - 2011 20-34 year olds Total Population Percentage Tuscaloosa 23,906 77,906 30.69% Birmingham 228,025 1,135,203 20.09% Huntsville 85,348 430,970 19.8% Montgomery 80,747 397,663 21.27% Mobile 86,029 416,462 20.66% ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA City 9 TUSCALOOSA 9 APARTMENT MARKET 10 TUSCALOOSA APARTMENT MARKET 10 ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA 11 FUNDAMENTALS MATTER TUSCALOOSA 11 APARTMENT MARKET T-TOWN SNAPSHOT ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA • Tight supply 12 • Growth in Income • Supply Coming TUSCALOOSA 12 APARTMENT MARKET Occupancy Rates Mid Year 2012 Average Occupancy Submarket ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA 97.0% 13 96.9% 96.95% Birmingham 96.8% Huntsville 96.7% Mobile 96.6% 96.5% Occupancy Rate 96.9% 92.3% 92.1% 96.6% 91.4% Montgomery 89.7% 96.4% Conventional Student TUSCALOOSA TUSCALOOSA 13 APARTMENT MARKET ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA New Apartment Unit Deliveries Source: David Wilson; Rock Apartment Advisors 14 14 TUSCALOOSA APARTMENT MARKET Tuscaloosa New Construction/Pipeline Under Construction Future Starts/ Planned 115 Greensboro Bluffs at Waterworks Future Starts/ Speculative Riverwalk Place Townhomes at Metalworks Boulevard Lofts East Edge Rock Point Lofts at City Center Standard at Tuscaloosa DENIED 15 15 TUSCALOOSA APARTMENT MARKET Recent Sales Name: Sterling Crimson Price: $49,850,000 $71,214 per bed 700 beds ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA 6.5 Cap 16 Name: Inverness Price (2011): $12,500,000 Note Sale 208 units $60,100 per unit *Sold in December 2005 for $22,750,000/ $109,375 per unit* TUSCALOOSA 16 APARTMENT MARKET Capital and Cap Rates ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA Cap rates have followed debt rates 17 • Class A Low to Mid 6 • Class B Mid 6 to Low 7 • Class C 9 up New capital formations on 50% of deals today Debt Standards higher but still available for development and acquisition TUSCALOOSA 17 APARTMENT MARKET Questions? ROCK APARTMENT ADVISORS BIRMINGHAM,ALABAMA Thank you 18 18 ROCK APARTMENT ADVISORS