Check out the new MACK in the Media guide. This quarterly publication will give you a wrap up of all of the stories and features that MACK was involved in over the recent months. Click on the headlines or video clips to be taken to the full articles. Also, be sure to read The MACK Position posts as well, giving you our thoughts on what’s happening in our industry.
Question: Now that you are such a large company, why do you still focus your investment dollars on single-family residential properties? Don’t you want to get into the commercial realm?
That question, or a variation thereof, is asked of us nearly every day. To us, the answer has always seemed obvious…regardless of the economy; people ALWAYS need a place to live. Very recently articles published by the Wall Street Journal and Morgan Stanley have helped strengthen that position.
Commercial properties have a tremendous amount of appeal. The thought of driving by an office building or a strip center and calling it ‘yours’ is attractive, and it’s certainly easier to show off a commercial property than it is 100 single family homes. As the Wall Street Journal points out though, the future for commercial properties is weak at best. The success of a commercial investment rides with the success of the overall economy and the good fortunes and business success of your tenants. The simple movement of our society towards eCommerce, the ability to buy goods from home without having to actually visit businesses, calls into question how important an actual storefront will be in the future. When your investment is dependent upon the success of a business, and yet that business’ success isn’t dependent on your property you find yourself in a precarious investment scenario.
Our philosophy on investing is quite simple – for any Real Estate investment to work, the rent must be paid. The best way to ensure that the rent is paid is to tenant the property with the highest quality tenant…a tenant that not only wants to be in the property, but needs to be in the property. Maslow wrote long ago that one of our top needs as humans is shelter. From caves to Country Club Hills, people have always sought out adequate places to call home. And as Morgan Stanley points out, more and more people are choosing to rent that home.
With a growing tenant base, the clear need for housing, a society moving towards rentership, and a populous moving away from buying goods in stores, we feel good not only about our current portfolio position and but also that of our growth strategy. Do you?
- Eric Workman
CNBC recently reported that millions of Americans who lost their homes in foreclosure are driving demand in the rental market. So much so that Oliver Chang, Morgan Stanley’s head of U.S. housing strategy and research believes it is time for institutions such as hedge funds and private equity to enter the Single Family Rental market. Please click on the image or link to view!
If the name Oliver Chang sounds familiar, it’s probably because you remember this post from a couple of weeks ago. The team at MACK has been working very closely with Oliver on this very issue…how can big institutional money sources enter in to the Single Family Rental market? It’s Olvier’s contention that the only way for institutions to make a successful entry into the market is for them to partner with operators such as MACK. We, of course, agree!
It’s here! CNN Money visited MACK early this month and the feature piece can be seen by clicking on the logo. CNN’s piece centers on the amazing life cycle of a foreclosure. The property starts off being the culmination of the American for a family, unfortunate events happen in their lives, the home goes into disrepair, and significantly impacts other owners in the neighborhood and the community. A company like MACK then takes over the property, brings it back up to new construction standards, fills it with our A quality tenants, and again the home becomes the culmination of a dream as opposed to an eyesore. Enjoy and please feel free to share!
Nearly 35 percent of occupied homes were rented in 2010, which is an increase of 33.8 percent from 2000, according to a USA Today analysis of U.S. Census data of more than 500 midsize and large cities.
Since the peak of the housing market in 2006, the number of renter households has grown — on average, by 692,000 a year — while the number of owner households is shrinking–on average, by 201,000 a year, according to the Census data.