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Investing in Housing for the NextGen
On this week’s episode of The Financial Commute, host Chris Galeski welcomes Todd Williams, Chief Investment Officer at Grubb Properties. Grubb focuses on investing in multi-family real estate and has $2 billion in assets.
Bob Grubb, founder of Grubb Properties, provided not-for-profit financing to people who were affected by redlining, a discriminatory practice in which services (financial or otherwise) are withheld from certain residents based on race. Since then, Grubb has evolved into a multi-family real estate manager and developer.
Grubb is now focusing on the segment of moderately priced multi-family housing for millennials and Gen Z. These younger renters usually don’t need as much space and want to be in urban locations near major amenities and job bases at a certain price point that puts them in a range of income qualification between 60% and 140% of AMI (area median income).
Grubb only has six types of floor plans, all of which remove inefficiencies like awkward corners to give their residents more space and amenities. Having fewer floor plans speeds up approval processes and makes it easier for management teams to understand and lease these units.
Over the pandemic, Grubb offered a discount to residents who prepaid their rent and provided a cap on rental increases to long-term residents. This bolstered loyalty with residents and lowered turnover costs. Grubb also had a temporary flight of residents and capital toward the growth markets in the South. However, because they knew urban areas would eventually bounce back, they started building in the Bay Area, L.A. and Denver and were able to secure discounts and subsidies.
DISCLOSURES:
Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and do not represent the views and opinions held by Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.
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By Chris GaleskiOn this week’s episode of The Financial Commute, host Chris Galeski welcomes Todd Williams, Chief Investment Officer at Grubb Properties. Grubb focuses on investing in multi-family real estate and has $2 billion in assets.
Bob Grubb, founder of Grubb Properties, provided not-for-profit financing to people who were affected by redlining, a discriminatory practice in which services (financial or otherwise) are withheld from certain residents based on race. Since then, Grubb has evolved into a multi-family real estate manager and developer.
Grubb is now focusing on the segment of moderately priced multi-family housing for millennials and Gen Z. These younger renters usually don’t need as much space and want to be in urban locations near major amenities and job bases at a certain price point that puts them in a range of income qualification between 60% and 140% of AMI (area median income).
Grubb only has six types of floor plans, all of which remove inefficiencies like awkward corners to give their residents more space and amenities. Having fewer floor plans speeds up approval processes and makes it easier for management teams to understand and lease these units.
Over the pandemic, Grubb offered a discount to residents who prepaid their rent and provided a cap on rental increases to long-term residents. This bolstered loyalty with residents and lowered turnover costs. Grubb also had a temporary flight of residents and capital toward the growth markets in the South. However, because they knew urban areas would eventually bounce back, they started building in the Bay Area, L.A. and Denver and were able to secure discounts and subsidies.
DISCLOSURES:
Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and do not represent the views and opinions held by Morton Wealth. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your attorney, finance professional or accountant before implementing any transactions and/or strategies concerning your finances.