ATLANTA—What does the rental pool looks like and what does this mean for apartment owners? How can commercial real estate investors capitalize on the value add strategy?

GlobeSt.com caught up with Ella Shaw Neyland, president of Steadfast Apartment REIT, to talk about these trends in part two of this exclusive interview. You can still read part one: A New Breed of Cities Rising.

GlobeSt.com: What does the rental pool looks like and what does this mean for apartment owners?

Neyland: Homeownership has decreased across all age groups which should spur apartment demand for a growing population for the foreseeable future, which is great news for apartment owners and investors looking for opportunities ripe for the picking. The Millennial group, ages 20 to 34, is reaching its peak over the next few years and will become the nation's primary renters.

This group favors mobility, is increasingly burdened by student loan debt, and is getting married later—critical factors that will keep fundamentals healthy. Also keep a lookout for Baby Boomers to drive apartment demand as many are giving up owning a home for the convenience and low-maintenance lifestyle of apartment living.  

GlobeSt.com: How can commercial real estate investors capitalize on the value add strategy? How are you approaching this?

Neyland: Steadfast has a unique strategy of acquiring quality assets in thriving markets and then investing additional capital to make comparatively minor aesthetic improvements. By introducing moderate upgrades to interiors when turning units between renters, we are able to compete with newer, class A assets without the class A price tag and provide a significant boost to the property's revenue and resale value.  

GlobeSt.com: What multifamily acquisition trends are you seeing?

Neyland: Steadfast still sees a robust volume of transactions and acquisition opportunities in our target markets. With most of the large institutional buyers still focused on the coastal markets, properties are not seeing the type of competitive bidding that results in the high price tags in those markets.