In 2023, operators, including BLVD, encountered numerous hurdles, notably heightened interest rates, and escalations in insurance, taxes, and utilities. Despite these hurdles, the multifamily market demonstrated resilience, remaining fundamentally strong. Apartments continued to lease at an accelerated pace, overcoming the even more challenging conditions of 2022. The market's positive trajectory can be attributed, in part, to the mitigating factors of cooling inflation and increased consumer confidence.
There has been a notable upswing in leasing activity across all BLVD properties, even during the traditionally slow fourth quarter. This surge in leasing, surpassing seasonal expectations, highlights the resilience and desirability of the portfolio's offerings. Additionally, the portfolio has witnessed strong rent growth numbers, particularly in key markets like Minneapolis.
THRIVE Into ‘25
In the real estate industry, a common theme throughout the past year has been 'Survive ‘til ‘25!' This sentiment was constantly echoed. However, a more refreshed perspective has recently emerged—one that BLVD strongly adheres to: 'Thrive into ‘25!' Our focus for the upcoming year is not merely surviving but thriving, and that is where our laser-focused efforts will be directed.
Thrive by creating exceptional customer (tenant) experiences, managing our properties with a keen focus on attentiveness to our residents, supporting their needs, and going the extra mile to increase customer satisfaction, ultimately boosting lease renewal rates.
Thrive by operating more efficiently AND effectively. While expenses may grow faster than revenues for many operators in 2024, this can be mitigated through strategic planning and attention to detail.
Thrive by seizing market opportunities through sound acquisitions and leveraging these acquisitions to deliver value to our investors.
Our Goal for 2024
Our goal for the year is to acquire 5-7 properties within our target range of 20-100 units. We are primarily focused in our backyard, the Twin Cities, and select markets in the Midwest & Southeast that meet our strict investment criteria. To limit uncertainty, we will implement smart financing and focus on purchasing strong cash-flowing properties with solid fundamentals.
Target Property Size: 20-100+ units
Target Deal Size: $5mm-$25mm
Target Net IRR To Investors: 15-20+% IRR
Preferred Return: 7-10%
You can read more about our strategy and criteria here or by scheduling a call with us. To ensure you don’t miss our next investment opportunity, use the button below to register in our investor portal.