Since 2000, the nation’s housing stock, both single and multi-family combined, has suffered from underbuilding to the tune of 5.5 million units. As a result, conservative estimates put the total undersupply of housing stock in the United States at 6.8 million units. The presentation will look at the severe housing shortage against the backdrop of population migration patterns and other economic drivers to better understand how we arrived at the housing crisis and what the outlook is for opportunistic investing in the future.

On September 10, 2020 ApexOne Investment Partners introduced ApexOne Multfamily Special Situation Fund IV to the FLAIA community. The attendees were some of the first to see this presentation. The Fund IV stated objective was to capitalize on opportunities that might evolve during and after the COVID-19 pandemic. The focus of Fund IV was acquiring properties from distresses seller and purchasing assets in markets that were overbuilt but had a clear path to recovery.

On February 18, 2021 ApexOne Sponsored an event with FLAIA where we explored how we analyze markets in the post pandemic world to capitalize on demographic and housing trends. Using proprietary data compiled with Balfour Beatty Communities, this data driven approach to investing has played a key role in the success of Fund IV.

On September 30, 2021 ApexOne Investment Partners will provide the FLAIA community an update on ApexOne Multifamily Special Situation Fund IV and its objectives for the remainder of 2021. Fund IV has raised over $200M and will have acquired nine properties by September 30th and placed over $170M of equity in $800m of multifamily assets in less than seven months. It has two additional properties under contract.

In addition to the update on the success of Fund IV, ApexOne will also discuss their outlook for the multifamily and housing markets going into 2022. We will also discuss some of the potential impacts of the proposed legislation going through Congress as it relates to investors, federal involvement with housing and taxation. 

Inflation has become part of the economic conversation for the first time since 2008. In a time of low-interest rates, a recovering economy and job market, and a shortage of both single-family and multifamily housing, what could the impact of inflation be on the housing market?

The Covid-19 pandemic has created an environment of uncertainty and increased speculation about the future of the real estate market. In an effort to identify opportunities and take advantage of the pricing dislocation in the multifamily sector, Apex One Investment Partners and Balfour Beatty Communities have created a proprietary database designed to understand and identify which markets could emerge and surge following the pandemic.

ApexOne believes the current economic crisis will ultimately create increased demand in multifamily properties by residents. Job uncertainty, reduced income, eroded personal wealth, and a tightening of the credit markets may result in residents remaining in rental properties longer; furthermore, we believe as new households are formed, more will elect to rent than own.Housing and nourishment are the two primary "needs" of individuals and families regardless of the economic picture. Shopping, entertainment, travel, luxuries, and other optional "wants" will be sacrificed during times of financial hardships to keep food on the table and a roof overhead. The necessity of housing along with the aforementioned trends and projections leads ApexOne to continue to believe the multifamily industry is uniquely positioned to weather market downturns, rebound more quickly from the recession and sustain rent growth following the recovery period longer than other real estate sectors.