Portfolio Update & Investor Sentiment Survey
We want to hear from you! We created a brief survey to better understand investor sentiment! DXE Properties’ 2024 investor sentiment survey.
This month we breakdown our assets and locations to give some perspective on what we are seeing in the real estate world.
Coastal Multifamily – Charleston and Savannah Metro:
In comparison to other high-growth areas of the southeast fighting to absorb the new supply, Charleston and the surrounding Savannah markets have continued to perform very well. Charleston has led the country in job growth over the past 12 months (%.) Each of our coastal assets have occupancies greater than 94%. Rent growth has moderated since the hey-day of 2021, however it appears the softness in these markets has improved and we are again increasing rents during the spring leasing season. Our newest asset, The Enclave at West Ashley is hitting its stride, we have notched consecutive month over month collection records as we continue our renovation strategy.
Atlanta – SoCo at Vinings:
The Atlanta market overall continues to show some weakness in new applicant volume, concessions and delinquency. In addition to significant new multifamily supply, multiple Atlanta counties are dealing with severe eviction backlogs. In Fulton and Clayton counties, an eviction was taking 12 months++ from filing to set-out. More recently there has been some improvement as eviction cases have gradually worked through the system. Additionally, Georgia Governor Kemp just signed House-Bill 1203 which will provide a landlord the authority to hire certain off-duty officers/individuals to execute writs of possession. This is expected to dramatically improve the bad-debt situation in Atlanta by reducing times for evictions. Outside of the rental payment issue, the Atlanta economy continues to outperform the other larger metros, adding jobs at a nation-leading pace. Atlanta was just named best US city for starting a career. DXE’s asset “SoCo at Vinings” has maintained its occupancy in the 93%+ range while write offs hover around 2.5%. Our review of local market data shows we are outperforming our competitors in both occupancy and delinquency. We attribute this to offering a better product and having stricter verification requirements.
Seattle Development - Candela:
On our Seattle Suburbs development site, our 426 unit class A development is fully approved. This month we began demolition of a temporary parking structure to prepare to go vertical. The demolition and site prep work will be completed by September at which point we intend to capitalize the project and go vertical! Immediately adjacent to us, construction of the City’s new light rail station is complete. Our station stop is scheduled to open in August, testing of the new rail line is currently underway. Seattle remains attractive to young professionals with its high income and relatively low rental affordability.
Retail Properties (Long Island and Westchester)
Retail in the New York Tri-State region has rebounded from the pandemic. Both of our retail properties are 100% leased and we have no tenants currently in arrears. While retail is not a focal point of our investment thesis moving forward; after working through the impacts of covid, neighborhood retail continues to survive and perform.
DXE’s assets do not have any near-term debt exposure, while we are beginning to see some financial distress hitting the marketplace from owner’s who do have this exposure. We are excited to be buyers in the current environment.
We always like to hear what our investors are thinking – please click here to take DXE’s 2024 investor sentiment survey. Results will be reported back in the next newsletter.
Best wishes,
Josh and Donato
DXE Properties | www.dxeproperties.com