CALCAP Connections                           February 2019

CALCAP Property Management
The multifamily market had another banner year in 2018, delivering on all cylinders, with occupancy, rent growth, and property appreciation all showing strong increases. The annual pace of U.S. apartment rent growth accelerated to 3.3% in 2018. This pushed 2018's rent growth performance ahead of the 2.5% increase in 2017.  
By comparison, CALCAP's portfolio achieved an outstanding 17.2% year over year increase in rent growth.  This performance even outpaced rent growth in two of our core markets, Las Vegas and Phoenix, which led the nation with rental increases of 7.3% and 6.5% respectively, according to Yardi. Similarly, CALCAP's portfolio outpaced the nation with respect to occupancy, ending the year at 96.7% compared to the national apartment average of 95.4%.
  CALCAP Properties manages multifamily and single family properties. It provides investment, renovation, and property management expertise to successfully implement and oversee value add strategies. CALCAP Properties is currently looking to expand its 3rd party management business, and happy to speak with property owners about any opportunities.
Edward M. Aloe   
President and CEO   
Check Out CALCAP's new website! 

Latest Headlines...

Average U.S. Home Seller Profits at 12-Year High of $61,000 in 2018
Median Home Sale Prices Hit an All-Time High at $248,000 in 2018; Homeowners Staying Put Longer as Average Homeownership Tenure Rises to New High
"While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains. However, those are the same areas where homeowners are staying put longer," said Todd Teta, chief product officer at ATTOM Data Solutions. "The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon. The effects of last year's tax cuts are wearing off as limits on homeowner tax deductions are in place and mortgage rates are ticking up ever so slowly, so this could dampen the potential for home price gains in 2019."
View Article Here  
Equity Rich U.S. Properties Increase to New High in 2018
Equity Rich Properties Represent 25.6 Percent of U.S. Properties; Share of Seriously Underwater Properties Drops to 8.8 Percent; Report Includes Home Equity Breakdown by Zip Code

The 14.5 million equity rich properties in Q4 2018 represented 25.6 percent of all properties with a mortgage, down slightly from 25.7 percent in the previous quarter but up from 25.4 percent in Q4 2017.
The report also shows more than 5 million U.S. properties were seriously underwater - where the combined estimated balance of loans secured by the property was at least 25 percent higher than the property's estimated market value, representing 8.8 percent of all U.S. properties with a mortgage. That 8.8 percent share of seriously underwater homes remained unchanged from the previous quarter and down from 9.3 percent in Q4 2017.
View Article Here
CBRE: Here's where multifamily investors should be putting their money in 2019
Why workforce housing will outperform the rest of the market
"Slow wage growth over the past decade contributing to a high number of potential renters, an extreme lack of new supply, and limited alternative options means strong and sustained demand for workforce housing apartments is expected to continue in 2019," CBRE said in its report.
According to the report, workforce housing has brought in nearly $375 billion in investment over the last five years, more than 51% of the total for all multifamily asset classes.
But despite the capital coming from "unlikely sources," including institutional and international investors, only a "small" amount of workforce housing has been built in the last 10 years, while many older apartment communities have been torn down to build new, luxury apartments and the like.
On the lighter side....

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.

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

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

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

1309 State Street Suite A
Santa Barbara, CA 93101
Greg Blix
Director of Investor Relations
(805) 896-8500

2603 Main Street, Suite 850
Irvine, CA 92614
Len Israel

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