A.CRE Consulting

Many of our clients come to us at different phases in their development timeline, looking for help structuring a capital stack that aligns with their project’s unique risks and opportunities. One common approach within the LP? 🤔 Class A investors to come in during the horizontal phase, taking on early-stage risk, while Class B investors join during the vertical phase with a focus on stability and passive returns. Stay tuned for next week's post where our very own Brian Schroeder will walk you through how to model this in excel. #CRE #CapitalStack #Equity #Waterfall #Development #RealEstate

Is the rental market finally stabilizing? Let’s break down the implications for renters! Apartment rents have posted the largest annual increase in 18 months, rising 0.9% year-over-year to $1,645 in August. Still, they remain below their 2021 peak of $1,700.  -------- What does that tell us? -------- The multifamily market is stabilizing. 👉 Multifamily Supply Meets Demand  Building completions are at historic highs, pushing some landlords to lower rents and offer concessions. This is improving affordability in oversupplied areas.  👉 Affordability Gains With wages growing 3.8% year-over-year in August and rents stabilizing, renters are finding relief. Wage growth is outpacing rent hikes, making apartment living more affordable. For instance, 2-bedroom rents stayed flat at $1,725. 👉 Regional Trends  ➡ Austin saw a sharp 17.6% rent decrease, saving renters $317 per month.  ➡ Virginia Beach rents surged by 15.2%, highlighting regional differences across metros like D.C., Baltimore, and Chicago. -------- So, what’s next? -------- With construction slowing down, rents may stay stable, but regions with a backlog of new units will see continued balance in the market. For multifamily investors and developers, how will you leverage these trends in your strategies? P.S. Want to dive deeper into real estate trends? Follow A.CRE Consulting for more economic insights!

Catch the conversation on: "Building a CRE Team". Michael Belasco shares his biggest pieces of advice on how to build a winning team in CRE. Link to the full Episode 8, Season 4 of Adventures in CRE's audio series:  https://lnkd.in/gs6XEYvy

Is your investment strategy leaving money on the table? Learn how to defer taxes effectively! The 1031 Exchange is a tax-deferral strategy under Section 1031 of the IRS code that allows investors to defer capital gains taxes on the sale of an investment property when it's replaced with a similar property. To successfully complete a 1031 exchange, certain rules must be followed. Here are the seven key rules: 1️⃣ Like-Kind Property ➡ The property you sell and the property you acquire must be “like-kind.”  ➡ This means both properties must be used for business or investment purposes, but they don’t have to be the same type (e.g., an office building can be exchanged for a piece of land). 2️⃣ Property Must Be Held for Investment or Business Use ➡ The properties involved must be held for investment or productive use in a trade or business, not for personal use (e.g., primary residences don’t qualify).  ➡ The intent must be to use the property for income generation or appreciation. 3️⃣ 45-Day Identification Window ➡ You have 45 days from the date of selling your property to identify a potential replacement property (or properties).  ➡ This period is strict, and if you miss the deadline, the exchange will not qualify for tax deferral. 4️⃣ 180-Day Purchase Window ➡ After selling your property, you must close on the purchase of the identified replacement property within 180 days.  ➡ This timeframe includes the 45-day identification window and is also non-negotiable. 5️⃣ Same Taxpayer Rule ➡ The taxpayer who sells the relinquished property must be the same as the one who buys the replacement property.  ➡ The entity or individual listed on the title of the old property must match the one on the new property’s title. 6️⃣ Equal or Greater Value Rule ➡ To defer all capital gains taxes, the replacement property must be of equal or greater value than the property being sold.  ➡ If the new property is of lesser value, the difference (known as “boot”) is taxable. 7️⃣ No Access to Sale Proceeds ➡ You cannot take possession of the proceeds from the sale of the original property.  ➡ The funds must be held by a qualified intermediary (QI) until they are used to purchase the replacement property.  ➡ Accessing these funds directly will disqualify the exchange. Following these rules ensures that the 1031 exchange remains valid and that the taxpayer can defer capital gains taxes on the sale. Have questions about your investment strategy? Comment “1031” and share your favorite strategy. P.S. Follow A.CRE Consulting for latest CRE insights. #acre #consulting #cre #realestate #1031exchange

Simplify your mixed-use #multifamily #underwriting process with our free financial model! 🏗️ Did you know you can seamlessly add commercial income to the Adventures in CRE (A.CRE) Apartment #Development Model? Comment your email below to receive a copy directly to your inbox! 📩 🔑 Key Features You'll Love: - Detailed Budget Section with Land-Value Calculator - Flexible Financing Assumptions - Comprehensive Lease-Up and Operating Assumptions - Partnership Waterfall with Single and Double Promote Options - Sensitivity Analyses for Up to 4 Scenarios 🔍 Don't Forget About the Hidden Tabs: - Retail/Commercial Income Tab - Detailed Expenses Tab - Annual Cash Flows Tab Looking for expert assistance? Our team of deal-seasoned professionals can underwrite your projects and customize this model. 🤝

What does a seasoned real estate attorney look for in a lease? A.CRE Consulting sat down with Ron Rhode, an experienced real estate attorney and successful triple-net investor, who shares his insights on what he prioritizes when reviewing lease terms. ↳ With over a billion dollars in real estate transactions and a portfolio of 120,000+ square feet of industrial properties, Ron brings a wealth of knowledge to both new investors and established groups. Whether you're just starting or managing hundreds of units, this is practical advice you can't miss! Watch now for valuable tips on navigating leases. Catch the full episode on A.CRE Consulting's channels: Youtube: https://lnkd.in/dDTjpJeG Apple Podcasts: https://lnkd.in/dM9izPN9 Spotify: https://lnkd.in/dCvae_ES #ACRE #RealEstate #CRE #TripleNet #Leasing 

AI is reshaping the interview process in Commercial Real Estate (CRE), creating a new reality for job seekers. First-round interviews used to be about making a personal connection or passing the “beer test”, and that’s a thing of the past now. 👉 Conversations are recorded and transcribed in real-time. 👉 Detailed summaries are generated automatically. 👉 Hiring managers can share clips of your interview with decision-makers, bypassing subjective interpretations. 👉 This means your first-round interview now carries the weight of what used to be a second or even final round. -------- What does this mean for you? -------- First-round interviews now demand a different approach: 1️⃣ Precision and Depth:  ➡ Be prepared to answer detailed, technical questions early in the process.  ➡ Whether it's about market analysis, deal structures, or financial modeling, your answers are more critical than ever. 2️⃣ Recorded Interactions:  ➡ Every response will be captured, reviewed, and potentially analyzed by AI.  ➡ There’s no room for vague or unclear answers. 3️⃣ Less Emphasis on Interpersonal Chemistry:  ➡ While likability is still important, the focus has shifted to competency and expertise in key areas of CRE. -------- How should you prepare? -------- ✅ Master the Fundamentals:  ➡ Solid, technical answers showcasing your CRE knowledge and deal-making expertise will make a lasting impression. ✅ Use AI to Prepare:  ➡ Platforms like ChatGPT or other AI-driven tools can help you anticipate questions and practice your responses with clarity and focus. ✅ Stay Updated on AI Tools:  ➡ As more CRE firms adopt AI, showing proficiency with these technologies is becoming necessary in the hiring process. -------- Key Takeaways for Job Seekers in CRE -------- 👉 Be Technically Proficient:  ➡ Expect tougher, more technical questions early in the process.  ➡ Your expertise will be scrutinized from the get-go. 👉 Leverage AI Tools for Preparation:  ➡ Use AI-based tools to practice and refine your responses.  ➡ AI is becoming a job requirement, so understanding how to work with it is crucial. 👉 Adapt to the New Reality:  ➡ Being able to work seamlessly with real-time transcribing tools will set you apart from other candidates. The future of CRE hiring is AI-driven. To stand out, you must not only demonstrate expertise but also showcase your ability to work with AI tools and adapt to this new hiring landscape. Are you ready for this next wave? P.S. What are some ways you’re staying on top of these challenges? Follow A.CRE Consulting for latest insights in CRE. #ACRE #cre #ai #tools #jobseekers

Looking for a smarter way to analyze value-add multifamily projects? A tool that can take your underwriting from start to finish. This is how we underwrite our clients' Value-Add Multifamily Acquisition Deals: 👇 When considering the best model for value-add apartment investments, these essential criteria are key: ✅ Robust  The model should match the capabilities of institutional-grade value-add analysis tools.  ✅ Simple and Intuitive It should be easy to use, with all inputs on one tab and clear navigation.   The A.CRE Value-Add Apartment Acquisition Model was designed with these priorities in mind. -------- Let’s dive into the key features --------  👉 Version Tab (Visible by default) ➡ View recent updates and access tutorials, guides, and support. 👉 Underwriting Tab (Visible by default) ➡ Enter all inputs, organized into six sections: ‘Investment Description’, ‘Investment Cash Flows’, ‘Operating Cash Flows’, ‘Reversion Cash Flows’, ‘Property-Level Returns’, and ‘Partnership-Level Returns (Waterfall)’. 👉 Summary Tab (Visible by default) ➡ View risk and return metrics with charts and graphs.   ➡ Includes a strengths/weaknesses section, space for a map/picture, and a full investment summary. 👉 Annual Cash Flow Tab (Hidden by default)  ➡ Rolls monthly cash flows into annual periods for high-level analysis.   ➡ Accessible via a toggle on the Summary tab. 👉 Detailed Expenses Tab (Hidden by default) ➡ Offers a detailed view of operating expenses when the 'Detailed' mode is toggled on. Ready to optimize your value-add multifamily underwriting? Comment below and we will send you the link to the model including our our in-depth guides and tutorials for using the model! 👉 A.CRE Consulting can underwrite your deals and customize this model for your team. If you are looking for institutional-quality underwriting from the team that trains the industry, reach out to us!

Is San Francisco office back? Since 2017, AI companies have leased 4.3 Million square feet of office space, helping a shrinking market recover. This trend isn’t just local - it's happening across the country, with San Francisco at the center of it. Despite substantial vacant offices still, AI companies like OpenAI, Anthropic, and Scale.ai have led a wave of new leasing. 📌 Analysts predict AI companies could lease up to 12 Million square feet of office space by 2030, boosting their role in the city’s CRE market. AI’s potential is attracting venture capital and changing office space needs. ↳ While big companies like OpenAI take up large spaces, most of the growth is coming from smaller, early-stage AI companies. Looking ahead, AI firms could lease another 8 million square feet in the next six years. But even that won’t fully address San Francisco’s office vacancy. In short, AI is reshaping the CRE market in San Francisco. Let’s watch how this story develops and impacts the future of the city’s office market. Do you think AI revolution can significantly impact the CRE Market? P.S. What markets could take the biggest impact of this AI surge? #acre #cre #sanfrancisco #office #rental

Can younger generations really afford homes? What do the boomers think about it 👇 With the majority of boomers choosing to stay put, the housing supply remains tight, pushing prices beyond the reach of many younger buyers.  More than half of the boomers believe younger generations could afford homes if they were “more responsible”.  This adds another layer to the affordability debate.  👉 Surveys show that most boomers feel financially secure because of homeownership: With 65% expecting to profit over $100K from a sale. ↳ Despite this, only 15% plan to sell in the next five years. Many cite rising costs of assisted living, inflation, and new home prices as reasons to stay.  At the same time, growing maintenance costs and property taxes are becoming real concerns for aging homeowners. Nearly half worry about their ability to keep up physically with the demands of homeownership.  --------- What does this mean for the CRE Market? --------- 📉 Tighter Housing Supply:  With Boomers holding onto homes, fewer properties are available for younger buyers, pushing them toward renting. This boosts demand in multifamily, BTR, and SFR sectors, driving up rents as supply remains tight. 🏠 BTR & SFR Surge:  As younger generations are priced out of homeownership, Build-to-Rent and Single-Family Rentals are stepping in to fill the gap. These asset classes are growing rapidly as families seek space without the cost of buying a home. 📈 Multifamily Stability:  Multifamily properties remain in high demand as homeownership becomes less accessible. Investors are capitalizing on the steady demand from renters, especially in markets where home prices are out of reach. 💡 Investment Opportunity:  Boomers staying put means fewer homes on the market, but a growing opportunity in rental housing. Multifamily, BTR, and SFR offer strong potential as younger generations seek quality rental options. ♻ Repost to share with your network! What do you think this means for the CRE Market? P.S. What’s your take on the “affordability debate”? #Acre #cre #realestate #rental #affordability