MIAMI—Elliot Throne, director at HFF in Miami, is bullish on multifamily. So bullish in fact that he only cites one major caution.
As we head into RealShare Apartments East, GlobeSt.com sat down with Throne to find out why he’s so bullish—and what that one caution is. Here’s part one of this exclusive interview. Be sure to come back this afternoon to read part two, where Throne will discuss multifamily buying and selling market dynamics.
GlobeSt.com: Are you as bullish as some others are on multifamily in the Southeast or is there still caution in your mind?
Throne: The market continues to receive great attention with Miami-Dade County being the most sought after due to the Central and South American influence and investments being made. With the condo market finding new strength again and development projects back in play, the multifamily market is riding its own wave of strong rental demand.
New apartment developments are being delivered throughout Miami, providing new inventory that the market has been lacking for some time now. Broward and Palm Beach counties are also seeing new developments as the entire South Florida market continues to pique the interest of investors from around the county.
GlobeSt.com: So it sounds like you are bullish…
Throne: It’s easy to be bullish with everything going on while it is also easy to understand those who want to be cautious. The last downturn is still fresh in many of our minds and the word “bubble” is starting to be talked about again. But when you compare South Florida to other markets around the country, the new product emerging is still being delivered with great success and recent values are bargains compared to values in other top markets across the country. That relative value, continual migration into the state, and contagious desire to live in South Florida will keep this market strong.
GlobeSt.com: Do you have any reservations about multifamily?
Throne: The one thing to be caution about is a more national and global economic crisis that could derail the momentum that the South Florida multifamily market is enjoying.
GlobeSt.com: Have the trends in multifamily investing changed?
Throne: Multifamily continues to be the hottest property type among all the asset classes. Other properties are seeing strengthening fundamentals, especially retail, but multifamily still leads the way. The CMBS market’s re-emergence has helped commercial properties and is beginning to cut into the dominance that the agencies have on multi-housing deals.
But that also will lead to more competition among apartment lenders as everyone wants to put money into this sector. As long as people from across the globe want to take advantage of the amazing weather and lifestyle that South Florida offers, the demand for quality rental apartments will continue to grow.