Updates on Rise48 Equity
Our staff continued to push rents across our portfolio in July 2021. Overall, we increased rents by about 4.2% as compared to prior quarter. We’ve pushed rents 15.8% across our portfolio year over year. This is a result of burning off loss-to-lease, renovation premiums, and market growth. We continue to perform well above our budgetary targets. Currently, we’re achieving a $90/unit premium over our pro-forma rents.
This year, we’ve renovated over 145 units across our entire portfolio. All of the renovated units have achieved or exceeded our pro-forma rents. We’ve stuck to our CapEx budget with minor tweaks and have not had any significant pushback on our rents.
We are slowing down on the renovations as we enter the slow leasing season. We continue to push to get exterior projects completed as fast as possible. This way, next year we will be left with completing the interior renovations.
Phoenix MSA Update
Phoenix continues to break records with impressive historical rent growth and projected rent growth. Based on Yardi’s recent forecast, Phoenix rents are expected to grow at 15.7% year over year. Historical rent growth as of July 2021 was 18.9%. Yardi continues to expect Phoenix to be the #1 Metro in the nation for rental growth.
Newmark Knight Frank released their Q2 2021 US Multifamily Capital Markets Report. Phoenix continues to lead the nation in total average annual returns at 22.4%. Part of the reason is absorption which continues to outpace supply in Phoenix.
ABI Multifamily also released their Q2 2021 Phoenix MSA Report with useful market statistics. Price per door skyrocketed 27.2% for 100+ unit multifamily to about $220,000 per door. Buyers continue to focus on 80’s product with significant value-add opportunities.
Rise48 Equity has completed $323,176,000 in total transactions since 2019, and currently has $283,176,000 of Assets Under Management, all in the Phoenix MSA.