BentleyForbes, Del American Establish M-F Development Partnership

Real estate investment firm BentleyForbes has joined forces with apartment developer Del American Real Estate Group to create a new multi-family development company.
Pure Living, by BentleyForbes Del American

Pure Living, by BentleyForbes Del American

 

By Barbra Murray, Contributing Editor

Real estate investment firm BentleyForbes has joined forces with apartment developer Del American Real Estate Group to create a new multi-family development company: BentleyForbes Del American. The new entity will erect best-in-class luxury apartment communities in key markets across the country under its Pure Living brand.

BentleyForbes Del American has hit the ground running. “We are building a robust pipeline of development deals and are constantly looking for unique sites for investment,” Jeffrey Warwick, president, CEO & managing partner of BentleyForbes, told Commercial Property Executive.

The company will first focus on California, Florida and Texas; it’s already commenced negotiations on its first two property sites in metropolitan Orlando. “Population growth and GDP per capita are expected to outpace national averages in these three key states,” Warwick said. “While we have experience and ‘eyes on the ground’ in these initial markets, we are looking at a variety of additional strong GDP growth markets across the Southeast and Southwest U.S.”

It takes a pretty penny to build state-of-the-art, resort-style apartment properties anywhere in the U.S. BentleyForbes Del American isn’t disclosing specifics regarding the amount of funds it plans to invest in developments. However, the firm conceded that investment allocations will vary according to market conditions and specific opportunities. The company will also seek outside participation. “BentleyForbes Del American remains bullish on the multi-family housing sector and appreciates the full value of business relationships; therefore, we welcome land contribution joint ventures and are open to a variety of strategic development partnerships,” Warwick added.

The endeavor is timely. The strength of the multi-family market endures, unabated by increasing construction. According to a fourth quarter 2013 report by real estate market data firm Reis, the national vacancy rate continued its multi-year decline in 2013, dropping 50 basis points to just 4.1 percent.

BentleyForbes Del American sees no end in sight to the market’s success, citing demographics as one reason. “Millennials now surpass Baby Boomers in headcount; therefore, new demand will result from the population bulge,” Warwick noted. And then there’s the issue of preferences. “Mobility, urbanization, household composition and recent single-family housing illiquidity are changing the traditional demand drivers,” he added. And of course, economics plays a part. “New supply of multi-family housing has been relatively restrained by tepid GDP and employment growth and absent capital financing, and interest rates will likely remain low for the medium term.”