May 5, 2023
Missing Middle Housing, Opticos Design
Let’s talk about the institutionalization of small multifamily housing.
In the latest Thesis Driven, Managing Partner of Greenspace Capital Michael Falgione takes a microscope to multifamily housing developments with between 2 and 49 units. He explains why this category has been overlooked by institutional investors for so long (more than 93% of this asset class is owned by independent private investors), and why that could all change with emerging technologies and efficiencies.
The Real Estate Take // Although this could be an exciting development for the Blackstones of the world, it could give some winter is coming vibes to all the mom and pop landlords of infill housing across the United States. It could go the way of the single family homes market and price regular folks out of the American dream… or it could become an opportunity for entrepreneurial developers to package portfolios and see tremendous upside.
The Creative Take // For those who have done the hard work of compiling a missing middle portfolio and are ready to sell if an institutional buyer is finally ready, they’ll need to present their projects in a cohesive package. The story they tell of ownership, management, value-added, and growing markets could be the difference between catching this train and staying left behind.
What kind of impact do you think this trend could have on mom and pop landlords? Feel free to hit respond — would love to hear your thoughts!
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MUST-READS
How this dead mall became a thriving coworking space // FastCompany
A gorgeous new American Airlines hotel, with one catch — You can’t stay there // WSJ
Follow the Next Generation of Urban Planners on Social Media // APA
The 8 Responsibilities of Chief Sustainability Officers // Harvard Business Review
A 120-year-old former factory is now the most stunning school in America // FastCompany
New York’s $15 Million Future Housing Initiative for New Construction // NYC HPD
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IDEA SPOTLIGHT
McKinsey’s Report on Proptech
In a fascinating new report, McKinsey asks: What do founders, executives, and investors in construction technology need to do to eliminate the barriers to efficient growth? To answer that question, the team surveyed approximately 100 investors and AEC tech players in 2022 and interviewed founders, investors, and large software companies in the industry. Using primary research and publicly available data, they also mapped and analyzed more than 3,000 AEC tech companies. Check out the results below.
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