Rent growth in Albuquerque Right on Track

Updated: Apr 13, 2018

Monday's edition of the Albuquerque Business First reported that rents are rising slowly in Albuquerque. CBRE reported an increase of 2.25% year over year in January.


The thesis that drove multifamily deals in the TDREF I pipeline was based on stable, supply-constrained markets which reports continue to affirm. We do not account for any rent increase during multifamily underwriting, so all growth is positive for internal rates of return (IRR).


Albuquerque markets follow national trends at more modest rates. Falling behind primary markets in growth periods, we enjoy far less volatility in downturns. Favorable supply conditions remain in both Albuquerque and Santa Fe, according to the industry-trusted CBRE report.


Josh Rogers, Titan Development's Director of Multifamily, says, “It is encouraging to continue to see steady, positive rent growth year-over-year in the Albuquerque market. We are excited to deliver Class A product in an area that is desperate for units of this kind, and that fits into the larger model we projected to offer Fund investors risk mitigated opportunity in a fruitful tertiary market.”


TDREF I is particularly excited about multi-family offerings in the Santa Fe market which remains one of the tightest in the nation, a fact reiterated in the latest CBRE report.


Sources:


CBRE March 2018 Albuquerque/Santa Fe MultiFamily Market Survey

www.cbre.com


RENTCafe Apartment Market Report March 2018

www.rentcafe.com




TDREF I approved investment, Broadstone Rodeo
TDREF I approved investment, Broadstone Rodeo

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