We mentioned in last month’s blog that we're investing in an adaptive reuse project in Denver's RiNo District that will eventually add a multifamily component next year. While we've been directionally bullish on Denver for some time (I know, hardly original), our diligence process only strengthened that belief once we really dove into what's happening on the ground level there.
Read MoreIt’s a multifamily developer’s dream -- A retail operator that juices the bottom line and simultaneously offers a service that residents actually want (and might even pay for)...
Look around in most cities and you’ll see beautiful new apartment buildings standing on newly built -- yet vacant -- retail spaces. These spaces are typically raw shells with ugly signage, and occasionally alluring lifestyle imagery to show what could be… someday. Or maybe never.
With ghost kitchens and deliveries of damn near anything at the touch of a button, not to mention Amazon’s earthly takeover, ground floor retail has seen better days.
Read MoreThis month we're excited to feature a product that we're incorporating into our own development project in Fort Worth! ORI Living is a provider of multi-functional, robotic powered living systems designed to maximize the potential of usable space and we're equipping the majority of our 54 units with their most popular device, 'Studio Suite'. The idea is that our tenants will be able to move in and move out with just a few suitcases and little to no furniture thanks to movable walls that unlock valuable square footage in (very) tight quarters.
Read MoreIt’s widely understood that there's a scarcity of modest and affordable housing in pretty much every major city in California. Factors such as expensive land, labor shortages, high construction costs, and difficulty in obtaining permits have resulted in a situation where only sky-high rents and home prices can offset the cost of doing business. With those considerations in mind, California lawmakers recently started to ease restrictions on alternative housing options to help relieve some pressure on the State’s rapidly declining middle class. And one such option, commonly referred to as ADU’s (Accessory Dwelling Units), have experienced a surge in popularity as homeowners look for creative ways to generate additional income right from their own backyards.
Read MoreAsk any homebuilder developer what they think are the 2 biggest risk factors affecting future housing projects and many will include a shortage of land and lumber. Wait, lumber (like, wood)?!? Yes, lumber. Current prices are more than 4 TIMES what they were a year ago at about $1,500 per 1000 feet versus $330 last May. Take a look at live futures prices HERE.
Read MoreLast month, the city council of Berkeley, California approved a resolution that called for the end of exclusionary zoning by 2022. It might not be surprising that a progressive enclave like Berkeley passed such a measure but communities of all political leanings are starting to reconsider both the intended and unintended consequences of restrictive zoning laws. That begins with the acknowledgment that many of those laws have been used to discriminate in housing far beyond the Fair Housing Act of 1968, while also advancing the perception that thriving suburbs consist of for sale, single family homes surrounded by manicured lawns and picket fences. Thankfully, municipalities are challenging those narratives by using upzoning to combat housing shortages and affordability concerns, which in turn will help make suburbs more accessible and inclusive.
Read MoreWe’ve written obsessively about the explosion of built-for-rent (BFR) developments recently. There’s no question that purpose-built, single family rental (SFR) communities are popping up literally everywhere. It’s hardly a trend at this point. The pipeline over the next several years is utterly staggering and we anticipate 5-10 years of steady growth in the asset class. Brad Hunter of Hunter Housing says that there’s at least $40 BILLION queued up for investment in the next few years.
Read MoreThe average household at one of our SFR communities is dual income with children and presumably busier than ever throughout the pandemic. These renters by choice are still working long hours while juggling childcare or home schooling responsibilities on a daily basis.
Read MoreAccording to United Van Lines, move out requests from San Francisco and New York to any destination were up 23% and 45%, respectively, versus the same period in 2019. And in San Francisco specifically, Apartment List reported that the share of users interested in moving to a secondary city increased by 9% compared to pre-pandemic levels. Statistics like that sent real estate professionals scrambling to figure out where those people were headed and cities such as Austin, Dallas Fort-Worth, Denver, Nashville, and Raleigh found themselves among the top destinations.
Read MoreAnyone who has been paying attention to the commercial real estate investment world recently has likely taken notice of the tremendous popularity of the built-for-rent (BFR) sector. As an early investor in the space, we receive many calls and messages from individuals who are trying to better understand what’s going on...
The past 6 months alone has seen a dizzying sequence of announcements from major home builders, investment managers, and publicly traded companies announcing ambitious plans to invest heavily into the single-family rental (SFR) industry.
Read MoreBack in May, Twitter's CEO Jack Dorsey surprised many when he sent a company-wide e-mailing stating that employees could work from home "forever." Dorsey cited Twitter's focus on decentralization and its need to support a workforce capable of working from anywhere given the circumstances brought forth by COVID-19.
Read MoreMaybe you missed the announcement from the Securities & Exchange Commission (S.E.C.) last week regarding its plan to modify the formal (and clearly outdated) definition of an "Accredited Investor" (Press Release HERE). We just wanted to briefly highlight the details, why the sudden change, and what it means for private real estate investors.
Read MoreThe opinions expressed within the contents of this website are those of its authors and Steel City Management LLC (“SCM”). Steel City Management is not a registered broker, dealer, or registered investment advisor. The investment offerings on this site are available only to “Accredited Investors” as defined by the IRS. These opinions should not be interpreted as a recommendation or statement of fact. All investors should make their own determination of whether or not to make any investment, based on their own independent evaluation and analysis. The information on the website should not be interpreted as financial advice. Past performance is not a guarantee of future results. All investments offered by SCM involve risk and may result in loss. Investors are advised to consult with their tax, legal and financial advisors before making any investment decisions. SCM does not give investment advice nor recommendations regarding any investment decisions.
We manage investments on behalf of our investors, specifically in real estate development, rehab, and construction. We also invest occasionally in small private operating companies.
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