Market · Q3
Why build-to-rent keeps absorbing in Wake County
Article excerpt to be supplied. A look at who is renting new single-family product and why they are staying longer than the underwriting assumed.
Insights
Notes on the market we build in.
Quarterly commentary on Triangle housing, construction costs, and what we are seeing in the field.
Latest
Recent articles.
Investing · Q3
Reading a private placement memorandum without a law degree
Article excerpt to be supplied. The five sections that actually determine your outcome, and what to ask about each one.
Construction · Q2
What happened to construction costs in the Triangle
Article excerpt to be supplied. Materials, labour, and municipal fees, and how each has moved over the past three years.
Tax · Q2
Depreciation, K-1s, and what a paper loss actually means
Article excerpt to be supplied. Why a profitable property can report a taxable loss, and what that does for a limited partner.
Market · Q1
Where the next growth corridor is, and how we picked it
Article excerpt to be supplied. Road projects, utility extensions, and employer announcements as leading indicators for land.
Investing · Q1
Questions to ask any sponsor before you wire money
Article excerpt to be supplied. Twelve questions that separate operators with a track record from operators with a pitch deck.
Quarterly note
Get our market note by email.
Four times a year we send a short written summary of what we are seeing in Triangle land, construction, and leasing — plus first notice when a new offering opens. No sales sequence, and you can unsubscribe in one click.
Reference
Glossary for new investors.
Preferred return
A return that limited partners receive before the sponsor participates in profits. A cumulative preferred return accrues if it is not paid in a given year and must be caught up later.
Equity multiple
Total cash returned to an investor divided by total cash invested. A 1.8× multiple means $50,000 invested returns $90,000 in total over the life of the deal, including the original capital.
Internal rate of return (IRR)
The annualized return on invested capital, accounting for the timing of every cash flow. Two deals can have the same equity multiple and very different IRRs if one pays out sooner.
Capitalization rate
Net operating income divided by property value. Cap rates move with interest rates and investor sentiment; a higher exit cap rate than underwritten is one of the main risks to a projected return.
Stabilization
The point at which a newly built or renovated property reaches its target occupancy and predictable operating performance. Distributions generally begin at or shortly after stabilization.
Cost segregation
A study that reclassifies components of a building into shorter depreciation lives, accelerating depreciation deductions passed through to limited partners in the early years of a hold.