Real Estate Strategy with a Multifamily Focus

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With over five decades of experience in the multifamily markets, RCLCO provides analytically rigorous and forward looking customer knowledge to help owners, operators and investors underwrite or optimize asset performance and identify strategies for differentiation or out-performance.

Our approach is customer-driven and focused on understanding demand-side market dynamics and trends driving changes in high-density housing preferences. We work with our clients to understand where to build or invest, what to build, and what performance outcomes are most likely.

 

Case Studies: Multifamily

Case Study: Strategic Market Analysis for Purdue Discovery Park District

Case Study: Rental Apartment Development During the COVID-19 Pandemic

Case Study: Competitive Advantages & Outlook for D.C. Submarket

Service Offerings

Real Estate Advisory Services for Multifamily

 

RCLCO has a robust multifamily market study and programming process and deliverable in the industry, designed to quantify the supply and demand conditions in the market and to define the most underserved or the target customer base with the most price inelasticity. Our reports are designed to develop a detailed product program including unit mix, finish level, amenity package and marketing strategy. A detailed competitive market analysis informs a price positioning strategy and performance outlook in a highly visual and user-friendly report.

We apply our national experience to local markets in an analysis that is hyper-targeted around product type and segmentation strategies.  RCLCO conducts detailed analyses of demographic drivers, consumer preferences, and the existing product in a market to create recommendations about optimum unit mix, pricing, floorplan layout, finish and amenity level, phasing considerations, and other factors that influence the built character and the types of housing products offered. We draw upon our extensive internal database of best practices and case studies to introduce and recommend innovate product types to set a development ahead of the competition.

RCLCO performs rigorous analysis and research to determine and validate underwriting assumptions including pricing and occupancy levels and other key metrics guiding a multifamily acquisition. We perform a detailed analysis of the local competitive set with adjustments to account for the unique characteristics of each proposed property to inform potential existing value, as well as to determine potential value-add opportunities. These metrics provide a data-driven, independent, third-party analysis to assist our clients in their acquisition underwriting.

We utilize our proprietary analyses to evaluate opportunities to reposition existing assets to capture hidden market value potential through property upgrades and renovations. RCLCO has the ability to evaluate multiple scenarios to provide owners potential revenue streams assuming different renovation/rehab scenarios and can create a strategy for the client to optimize return on investment.

RCLCO has full feasibility expertise for high-density for-sale housing and is often called upon to complete a highest and best use analysis comparing for-rent and for-sale alternatives.  Our condominium analysis also includes target customer definition and unit size/unit mix recommendations.

RCLCO has extensive experience in the hotel-branded residential space, working with operators and developers to refine and advance these serviced housing opportunities. We use our in-house knowledge and a proprietary analysis to determine likely product premiums, appropriate product types, supportable program sizes, pricing, guidance on amenity and service configurations, and other relevant recommendations. We also can assist in identifying operators and soliciting hotel/flag partnerships on the behalf of our developer clients.

RCLCO has expertise in the analysis and decision-making process involved in conversion of office, hotel, or other product types to multifamily housing. We can provide a market-drive analysis quantifying the appropriate residential metrics (pricing, absorption, occupancy), and determine if market supply/demand conditions make a conversion favorable.

We conduct data driven multi-market analysis at the metropolitan area-level and the sub-market level to help our clients prioritize the markets to focus their investment or acquisition efforts.  The variable that inform this analysis are driven by the client’s strategy and return objectives and the analysis is powered by RCLCO’s advanced data analytics tools. The results are presented in interactive maps and dashboards with easy periodic updating.

We bring advanced financial modeling tools to help our clients understand development feasibility, return on value add, or to settle on land value. We bring advanced sensitivity analyses including Monte Carlo simulation, Sharpe Ratio or other measures to define a range of outcomes.  Our modeling is organized as a decision tool to let the sponsor or investor compare the returns or downside risk of multiple strategies or program alternatives. While we are not licensed appraisers, we are able to provide a market supportable opinion on value using industry-standard methods.

RCLCO brings advanced analytics to understanding retail markets, which can be applied to housing driven mixed-use projects with ground-floor commercial space, our Retail Market Assessment provides guidance to the amount of retail that is supportable, the types of retail tenants that most respond to unmet demand and achievable lease rates. We also quantify for our clients the role that retail or other mixed-use components may have in driving premium pricing or enhanced absorption pace.

We bring our breadth of experience across all asset classes to evaluate residentially driven mixed-use assignments, including projects with retail, grocery, office, or hotel components or anchors. We are able to determine the development feasibility, and potential pricing premiums associated with multifamily housing in a mixed-use environment. RCLCO can also perform market analysis on the supporting land uses, if required, for a more comprehensive look at the proposed mixed-use development.

Related to the multifamily space, RCLCO also has expertise in the growing single-family rental market, and performs both preliminary and comprehensive analyses to guide the development process.  More information on our single-family rental capabilities can be found here.

Multifamily Research & Reports

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