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CALCAP Connections                           October  2018
 PRINCIPAL'S CORNER

 
CALCAP Poised for Demographic Shifts
 
Over the next 10 years, researchers suggest that 25 million new households will be formed, of which approximately 13 million will move into a household abandoned by someone who passes away or moves to an assisted living facility. The net gain of 12.5 million new households represents a staggering 86% increase in the growth seen from 2005-2010! Homeownership is expected to continue to decline to around 60% by 2025, as the senior population passes away (80% own their home), and younger generations are less eager to jump into home ownership. Wounds from the Great Recession continue to dampen the desire to own a home, as well as the recent tax laws that have reduced the benefits of home ownership. 
 
Approximately 62% of this household growth will occur in the south (where 42% of America currently lives). Affordable housing and warm weather will continue to attract people to places Texas, Arizona, Nevada, Florida and North Carolina*.
 
CALCAP's apartment and lending businesses are positioned to take advantage of these demographic shifts, as we provide housing at price points that are attractive to both fixed income seniors, and just starting out millennials (or lend money to those who are doing the same). The B/C apartments we own in markets like Phoenix and Las Vegas also cater to many immigrants who may be first time renters and will benefit from migration moving to the sun belt states.
 
*Burns Real Estate Consulting, LLC
 
 
Sincerely,  
 
Edward M. Aloe     
President and CEO   
626-229-9057  
    
Latest Headlines...
Trump administration unveils new rules for Opportunity Zones
 
According to the Treasury, approximately 35 million Americans live in areas designated as Opportunity Zones. The median family income of the designated areas are 37% below the area or state median, on average, and those areas have an unemployment rate of nearly 1.6 times higher than the national average.
 
With existing home sales at a three-year low, are more people turning to renting?

Newly released data from the National Association of Realtors shows that existing home sales fell to a three-year low in September, as home prices rose for the 79th straight month. That's more than six years of monthly price gains, and it's putting a squeeze on housing affordability.
Another headwind for single-family housing is that interest rates are basically at the highest level they've been at in 10 years.
Combine steadily rising home prices with recent record-high interest rates and now people can't afford as much house as they could just a few months ago. And that could push people to look for an alternative: renting.

    
4 Reasons Senior Housing is Interesting to Investors
 
While senior housing has always been a profitable industry, it has really been able to stand on its own two feet recently as a viable and significant class of real estate - with more and more outside investors jumping on board and adding senior housing to their portfolios. In a recent survey conducted by the National Investment Center for Seniors Housing and Care (NIC) and National Real Estate Investor (NREI), senior housing was once again the most attractive real estate asset class when compared to a host of other commercial real estate classes, including industrial, hotels, multifamily housing, office and retail, and more.
 
 
On the lighter side....
ABOUT CALCAP ADVISORS

California Capital Real Estate Advisors, Inc. (CALCAP) is a real estate investment and advisory firm.  Partnering with businesses, asset managers, developers and communities we reposition distressed real estate, and provide liquidity, adding value for our stakeholders and the communities we serve.  
 
We are proud of our ability to identify opportunities and to move quickly in adding value to a diversity of projects. Through our experience, extensive network and creative problem-solving skills we have established a strong record of success.

CALCAP's work includes the acquisition of distressed residential and commercial properties and debt; the repositioning of real estate; asset management; real estate brokerage; consulting; and real estate financing services.

LOS ANGELES
The Sanborn House
65 N. Catalina Avenue   
Pasadena, CA 91106
  
Edward M. Aloe, President & CEO
(626) 229-9057

Mark A. Mozilo, Principal
(626) 229-9056

SAN DIEGO 
12626 High Bluff Drive, Suite 360
San Diego, CA 92130 
  
Patrick A. Wakeman, Principal
(858) 764-4890

PHOENIX
4747 North 7th Street Suite 170
Phoenix, AZ 85014
  
Drew Buccino, COO
(602) 419-3381

SANTA BARBARA
1309 State Street Suite A
Santa Barbara, CA 93101
 
Greg Blix
Director of Investor Relations
(805) 896-8500
greg.blix@calcapadvisors.com

IRVINE
2603 Main Street, Suite 850
Irvine, CA 92614
 
Len Israel
CEO, CALCAP Lending, LLC
949-439-1044
len.israel@calcapfinancial.com  

View our new website: www.calcapadvisors.com 
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