What We're Seeing:
Investor fear is driving crypto selloffs, fueling fluctuations in stock
prices, and causing investors to press pause. However, now is not the time to wait on the sideline. In fact, I would argue that investors can never time the market but can instead pursue deals that make sense and maintain control over as many variables as possible. As always, the Vision & Beyond team believes risk/reward analysis is vital as the first step to assessing multifamily investments. Now is no different than any other time. If there is a difference we are seeing today, it is that other more reactionary investors are sitting on the sideline waiting to feel “safe.” In fact, if there is ever the perception of certainty in a market, this perception is fool’s gold.
How Vision & Beyond is Capitalizing on These Changes:
Perceived economic uncertainty should chill the housing market and drive the rental market up for lower to middle-income renters. This will also eventually drive additional equity into multifamily from office and retail. These market reactions support Vision & Beyond’s investment strategy in this economic climate.
Our strategy from the beginning has been a simple one and has allowed us to take advantage of up and down markets. Vision & Beyond is committed to controlling all aspects of the investment cycle and doesn’t rely on outside parties for any aspect of the investment cycle: we source all deals internally and from off-market sources, we secure our materials in bulk through our materials company, we complete construction, renovation, and repairs on our own timeline with our in-house construction company, and we manage each multifamily asset with an on-site management team built from the ground up. In short, we establish full-service operations in every market in which we operate.
While many perceive the economy to be in a period of great instability, we continue to do what we have always done: keep a level head and focus on what we can control. Our core priority of operational control is what Vision and Beyond was founded upon.
Our devotion to operational excellence and consistency, especially during these times of perceived market volatility, has set Vision & Beyond apart. When other groups are hitting the pause button, we are placing urgency on our operations to get projects fully leased and maintain strong cash flow despite concerns about the economy. In response, our fantastic team hustled to break virtually every company record, hitting our goals for the year in a single quarter. As you can see below, our team’s successes have been significant and worth celebrating. The numbers speak for themselves.
A Record-Breaking Quarter:
In one quarter, our team completed 324 full apartment renovations
We Increased rents per sq. ft. by 50%
In a single month, we recorded 133 new tenant move-ins
These results are a credit to both the Vision & Beyond team and their commitment to diligence and hard work, and to our investment partners who believe in us. We are grateful for your trust in us and can’t wait to accomplish many more successes together in the future.
John Rubin is the head of investor relations for Vision & Beyond's North American offices. You can reach him at john@vnbinvest.com.