In this episode, we sit down with two of Colliers International’s leading sales brokers—Bob Heard and Zar Haro—to explore the current landscape of apartment investments in San Antonio and Houston. With years of experience uncovering hidden opportunities, Bob and Zar offer expert insights on whether now is the right time for apartment investors to dive into the South and Central Texas markets.

Key Takeaways:
1. Market Insights:
• San Antonio: Zar Haro takes us through the current state of distressed operations in Central Texas, drawing comparisons to the market shift of 2008. He reveals how operational challenges are creating unique opportunities for future growth.
• Houston: Bob Heard highlights Houston's strong economic fundamentals—such as robust job and population growth—even as certain areas experience occupancy struggles, particularly with tenants moving back in with family or opting for roommates.
2. Investment Strategies:
• San Antonio: Zar dives into the emerging opportunities in South Central San Antonio and the Medical Center area, where government projects are driving change and property prices are seeing significant shifts.
• Houston: Bob suggests that investors focus on well-located B properties in suburban hotspots like Katy and Conroe, which are holding steady despite an influx of new supply.
3. Investor Sentiment: Both Zar and Bob discuss the prevailing mood in the investor community—cautious optimism. They break down how investors are approaching distressed properties and making strategic acquisitions to maximize long-term value.
4. Immigration Impact: A hot topic raised by Paul—could immigration policy changes affect occupancy rates? Zar weighs in with early signs of delinquency, especially in areas where fear of ICE raids is beginning to impact renters’ stability.
5. Funding & Transactions: Zar and Bob explain the driving forces behind apartment transactions, with high-net-worth individuals and experienced syndicators leading the charge. They touch on how high leverage and strategic acquisitions are key to closing successful deals in today’s market.
6. Funny (and Not So Funny) Stories: Get a behind-the-scenes look at the quirky and sometimes challenging aspects of the real estate business. Zar and Bob share amusing stories from their careers, including unforgettable encounters with rat infestations and creepy, abandoned buildings.
To contact Zar Haro: zar.haro@colliers.com
To contact Bob Heard: bob.heard@colliers.com

Are you interested in learning more about how Multifamily Syndications work? Please visit SPIADVISORY.COM to understand more about Michael Becker’s Real Estate Syndication business.

Did you go? If not…these were the themes, of the 3-day event, between apartment operators, investors, investment sales brokers and lenders. This nationwide conference had optimism in multifamily for the long term…but continued challenges (higher interest rates, higher cap rates, and the lack of distressed assets coming to the market) for the shorter term.
1. NMHC Meeting Overview: The meeting was held at the Aria Hotel in Las Vegas, attended by around 10-12,000 people from various sectors of the multifamily industry.
2. Market Sentiment: Despite challenges, there is optimism about the fundamentals of apartment ownership and investing improving. The sentiment among brokers is more optimistic than among operators.
3. Class A and C Properties: Class A properties are in high demand, while Class C properties are currently out of favor. There is limited availability of properties on the market, and the bid-ask spread remains wide.
4. Interest Rates and Financing: Interest rates are expected to stay higher, but there is some expectation of rate cuts in the future. Banks are starting to open up to lending again after a period of tightening.
5. Distressed Properties: There is some distress in the market, particularly among properties financed with bridge loans. However, the overall percentage of distressed properties is relatively small.
6. Dallas-Fort Worth Market: The Dallas-Fort Worth market is highly favored, with strong fundamentals and high demand.
7. Future Outlook: Michael & James believe that the market will improve, with rent growth expected to return and supply issues easing. They suggest that now might be a good time to consider buying multifamily properties. New apartment supply is coming down rapidly and rental growth is coming back after 138 consecutive weeks of year-over-year decline.
8. Events and Networking: The Old Capital Bus Tour is on March 28th and a virtual Old Capital speaker series on February 5th are upcoming events for networking and learning more about the multifamily market. RSVP to OldCapitalPodcast.com
Overall, the discussion highlights cautious optimism in the multifamily housing market, with a focus on strategic buying and navigating current challenges.

Are you interested in learning more about how Multifamily Syndications work? Please visit SPIADVISORY.COM to understand more about Michael Becker’s Real Estate Syndication business.

1. 2024 Performance: Michael was disappointed with the acquisition activity due to fluctuating interest rates and low transaction volumes.

2. Market Conditions: The fundamentals were soft in 2024 with flat to down rents, especially in Central Texas. Occupancy stabilized at around 93% portfolio-wide by January 2025. Michael anticipates a recovery in 2025, particularly in the second quarter when the supply of new properties is expected to decrease significantly.

3. Example Deal: Michael described a deal in Dallas involving a late 90s property bought for around $170,000 per door, with plans to invest about $10,000 per unit for renovations. The property is well-located with low rents compared to competitors and has a value-add opportunity.

4. National Multifamily Housing Council (NMHC) Conference: The conference is a major event for multifamily real estate professionals, focusing on deal-making rather than education. It is beneficial for networking and meeting potential equity partners, though it may be overwhelming for newcomers.

5. Market Outlook: Michael expects higher occupancies and rent growth in 2025 as the supply of new properties decreases. He also notes that the current environment is challenging but sees a generational buying opportunity in multifamily real estate.

6. Advice for New Investors: New investors should start as limited partners to gain experience and recommends participating in educational events like bus tours to understand the market better.
Overall, the discussion highlights the challenges and opportunities in the Texas real estate market, the importance of strategic networking, and the potential for recovery and growth in the coming years.

Are you interested in learning more about how Multifamily Syndications work? Please visit SPIADVISORY.COM to understand more about Michael Becker’s Real Estate Syndication business. If you enjoyed this discussion; Please leave us a 5-STAR RATING on iTunes.