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Professional Publishing, Inc www.TheLandlordTimes.com
Vol. 17 Issue 6
June 2013
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EUGENE • SALEM • ALBANY • CORVALLIS
MONTHLY CIRCULATION TO MORE THAN 5,000 APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL Published in association with: METRO Multifamily Housing Association & Rental Owners Association
Multifamily in Springfield, Oregon Springfield Sold Comps 2009 to 2012 Springfield has a number of noteworthy transactions for the years of 2009, 2010, 2011, 2012 and 2013. The market correction that occurred in 2008 and 2009 had a significant impact on the number of transactions and the availability of financing for apartment acquisitions. However the demand for multifamily properties has been high as the failure of the housing market has driven demand for apartments as a viable choice for housing. Decreasing vacancy factors, increasing rents and high tenant demand has made apartments a preferred investment property. The table below will show brief details of the closed transaction starting in 2009 and ending year to date for 2013. Continued on page 8
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The Landlord Times and Apartment News sat down with veteran apartment broker and investor, Joseph Chaplik to discuss Arizona, Oregon and the state of the apartment investment market. THE LANDLORD TIMES: Give us a brief history of your career. How did you get into the apartment brokerage business?
$1.1 Trillion Apartment Industry Highlights Multifamily Job Growth for Congress
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Highlighting the economic strength of the apartment industry in front of Congress, Tom Bozzuto, Chairman and CEO of the Bozzuto Group, represented the National Multi Housing Council (NMHC) and the National Apartment Association (NAA) before a House Energy and Commerce Subcommittee recently. “The apartment industry is a competitive and robust $1.1 trillion industry that helps 35 million renters live in a home that’s right for them. In an environmentally sound way, we help build vibrant communities by offering housing choice, supporting local small businesses, creating millions of jobs and contributing to the fabric of communities across the country,” said Bozzuto, who is also chairman of NMHC. It takes at least 300,000 new apartments each year to meet demand, but less than half that number was delivered in 2012. Highlighting a $72 million apartment construction project in Baltimore’s Union Warf, Bozzuto drew the connection between job creation, manufacturing and multifamily development. Continued on page 8
JOSEPH CHAPLIK: Previously I was a Vice President of a telecommunication company and started buying apartments when I relocated to Portland. The level of professionalism by the other brokers was not impressive, so I decided to start my own company. I wanted to provide a higher level of professionalism, integrity and service to the apartment investors, which I thought they deserved. Today we represent close to 1/3 of the transactions; more and more clients have been gravitating to our company for our quality care. TL: You now serve four markets... give a brief state-of-the union on multifamily real estate in your new market, Phoenix, AZ. JC: We just opened our newest office in the Phoenix market this year and have been making great progress. The cap rates are around 7% and higher for the B and C quality buildings and locations. The price per unit is significantly lower than other markets, and the vacancy rates are modContinued on page 3 Page 2
PRESIDENT'S MESSAGE Page 4
A MESSAGE FROM YOUR PRESIDENT …