MIAMI—Is there an increasing demand for multifamily? That depends on what part of the country and whom you ask.
We asked Art Falcone, founder and managing principal of Encore Capital Management, for his thoughts. And we asked him specifically about the Fort Lauderdale region. For more insights on the multifamily market, join me at RealShare Apartments East 2018 on March 8.
GlobeSt.com: You are developing multifamily projects across the country, including the newly announced Rise Flagler Village in a trendy part of Downtown Fort Lauderdale. Why do you think there will be an increasing demand for rental units in 2018?
Falcone: The country has been averaging 300,000 new rental units each year for the last several years. Historically, that’s not a high number. The numbers in 2017 were even lower. We think based on the propensity to rent, and the number of Baby Boomers entering the market, the country can easily handle 300,000 to 400,000 units per year, depending on the market.
GlobeSt.com: Why did you pick Fort Lauderdale for your first location in Florida?
Falcone: The number of young professionals living in this part of Fort Lauderdale is rapidly growing, and housing is in high demand. Many of them prefer to rent in a luxury apartment building, rather than worry about purchasing a home.
GlobeSt.com: Is there a sweet spot in the multifamily market right now?
Falcone: The sweet spot is developments with a wide variety of amenities and high walk scores. The Rise projects are located in neighborhoods and sub-markets near employment centers, transportation, recreation, and entertainment—where people want to live, work and play.
GlobeSt.com: In 2017, you launched a new luxury apartment brand called the Rise. Tell us about that.
Falcone: The brand is synonymous with upscale urban living and our tagline is “Live Local.” That’s because we understand that people want to live close to where they work and play.
We wanted to create amenity-rich developments in prime locations with a lot of pedestrian programming. We are already construction The Rise brand in Portland, San Francisco, and Los Angeles. Those projects include The Rise Old Town, The Rise Central, The Rise Hayes Valley, The Rise Walnut Creek, The Rise Hollywood, and The Rise Koreatown.