Housing and Inflation: What is Around the Corner?
Inflation has become part of the economic conversation for the first time since 2008. In a time of low-interest rates, a recovering economy and job market, and a shortage of both single-family and multifamily housing, what could the impact of inflation be on the housing market?
- Where are we? Transitory or Historic Inflation?
- Is Real Estate, especially multifamily, still a hedge against inflation?
- How will inflation impact the different real estate sectors?
- How much are “input costs” being impacted by inflation? And is there an end in sight?
- What solutions do multifamily properties offer the shortage and affordability crisis facing the nation?
- Where does multifamily real estate fit into an investment portfolio during inflation?
- How will inflation impact interest rates and the labor market?
Event Recording
Housing and Inflation: What is Around the Corner?
Speakers
Ernest Johnson
- Title
- Executive Managing Director @
- Company
- ApexOne Investment Partners
- Role
- Moderator
Ernest is an Executive Managing Director with ApexOne Investment Partners, a private equity firm investing in the multifamily sector. Ernest focuses on capital markets, fund strategy, financial administration, and investor communications. Ernest has extensive real estate experience with some of the industry-leading firms, including 17 years with PM Realty Group and 10 years with JMB Property Company.
Immediately following graduation from college, he managed a national multifamily student housing portfolio and was responsible for all facets of operations, including acquisitions, dispositions, construction, and finance.
Ernest is actively involved with National Multifamily Housing Council. He serves on the Advisory Council for Auburn University’s Master of Real Estate Development program and is also on the University of Florida’s Bergstrom Real Estate Center Advisory Board. Ernest previously served as the Chairman of the Board of Trustees for the Lone Star Chapter of the National Multiple Sclerosis Society and has been inducted into the MS Society’s National Fundraising Hall of Fame. Ernest graduated with a Bachelor of Science in Business Administration from Auburn University (1980).
Tim Burns
- Title
- Executive Managing Director and Chief Investment Officer @
- Company
- ApexOne Investment Partners
- Role
- Panelist
Tim, a Partner of ApexOne Investment Partners is an Executive Managing Director and the Chief Investment Officer. He is a member of the Investment Committee and directs the asset management of the firm’s investments. He focuses on Company and Partnership Strategy, Acquisitions, Dispositions and Asset Management.
Tim has 30 years of real estate experience including the acquisition, finance, renovation, asset management and disposition of over 15,000 residential units, ten million square feet of industrial/warehouse space and four million square feet of retail property.
Prior to joining ApexOne Investment Partners, Tim served as a Principal of Adams LaSalle Realty, a Chicago based multifamily investment sponsor where he was responsible for the firm’s acquisitions and venture partner relationships.
Tim served as the Senior Vice President and Portfolio Manager of Heitman Capital, an institutional real estate investment advisor with over $25B of assets under management. His portfolio at Heitman Capital included $2B of multifamily, office, industrial and retail assets.
Prior to the acquisition of JMB Realty Corporation by Heitman Capital, Tim served as Portfolio Manager for funds within JMB Institutional Realty Corporation, including JMB Group Trust V, the largest fund invested by JMB. Within these funds, Tim was responsible for a variety of large assets with values in excess of $100M each, and led the value enhancement strategies whereby the funds significantly outperformed their relevant index returns.
Tim is an active member of National Multi Housing Council and the Urban Land Institute. He graduated from Western Michigan University with a BA in accounting and is a Certified Public Accountant. Tim enjoys basketball, attending gymnastic meets where his daughter competes for Iowa State University, and travel.
Tim has also been a guest lecturer at the University of Florida’s Masters of Real Estate program presenting case studies to the candidates.
Michelle Connell, CFA
- Title
- President/Owner @
- Company
- Portia Capital Management
- Role
- Panelist
Ms. Connell has devoted her professional life to the wealth management of private investors, as well as non-profit institutions. She received her Master of Business Administration with Honors from San Diego State University and an undergraduate degree from Seattle University (Magna Cum Laude). Ms. Connell has extensive experience managing equities, fixed income and private investment portfolios. She has served as a senior portfolio manager for several private banks and boutiques in Texas, Chicago and the West Coast.
Ms. Connell is also an adjunct professor of Finance at the University of Texas in Dallas and also teaches the CFA Review at several other universities. She was rated one of the Top 12 Financial Professors in the United States in 2019.
Ms. Connell has over 20 years experience serving in institutional investment capacities, including: Co-portfolio manager for several mutual funds; Investment committee member responsible for the approval of all assets, including public and private markets; Head of the Technology Sector analyst team for one of the nation’s largest banks; Senior portfolio manager serving foundations and ultra-high net work individuals; Tenure at firms that specialize in the offerings of private equity and private debt.
Mike Price
- Title
- Senior Vice President, Residential Transactions @
- Company
- Balfour Beatty Communities
- Role
- Panelist
Michael Price is Senior Vice President, Residential Transactions, with responsibility for the evaluation and coordination of multifamily acquisitions and ground-up development opportunities. He specializes in evaluating and structuring real estate transactions, as well as implementing strategies to optimize the Company’s real estate portfolio. Prior to his current role, Mr. Price worked in the Company's finance and asset management division, where he was a key member of the team managing projects to design, build, renovate, finance and operate military and student housing through partnerships with various entities. Mr. Price has more than ten years of experience in the real estate industry with a focus in finance, asset management and property management, having held previous roles in the student housing division for GMH Communities Trust. Prior to that, Mr. Price was part of the financial and market analytics team at Jones Lang LaSalle.
About
ApexOne Investment Partners
ApexOne Investment Partners, LLC, a Texas limited liability company, is headquartered in Houston, Texas, with offices in Chicago, Illinois, Boca Raton, Florida, and Phoenix, Arizona, and, together with its affiliates, has substantial experience in real estate acquisition, syndication, financing, development, and disposition, as well as real estate transaction management. James A. Hearn, Ernest Johnson, Tim Burns, William Saul, and David Steele are the principals of ApexOne (the “Principals”).
Following on the success of ApexOne Growth & Income Fund I, LP, a Delaware limited partnership (“Fund I”), ApexOne Growth & Income Fund II, LP, a Delaware limited partnership (“Fund II”), and ApexOne Multifamily Fund III, LP, a Delaware limited partnership (“Fund III”), ApexOne has formed ApexOne Multifamily Special Situation Fund IV, LP, a Delaware limited partnership (the “Partnership”), to make investments in direct and indirect equity interests in multifamily residential properties, including those requiring capital infusion, repositioning, post-development leasing or which may be subject to a distressed sale, as well as indebtedness secured by such multifamily residential properties.
ApexOne Investment Partners has acquired 46 properties and invested over $1.5B in workforce and student housing communities over the last seven years. ApexOne prides itself on providing excellent living environments to its residents, high returns, and transparent communications to its investors while reducing the environmental impact of their properties. Their fund level returns on fully cycled properties have averaged over 28% and Over 94% of ApexOne’s investors have repeatedly invested in all three of their Funds.
Balfour Beatty Communities
Balfour Beatty Communities is a diversified real estate services company delivering acquisition, management and renovation services in the multifamily, student and military housing sectors. A leader in the industry for more than 20 years, our residential portfolio currently consists of more than 50,000 units and $6 billion in real estate assets under management. Since our inception we have developed or renovated more than 31,000 units with a total value approaching $4 billion. Our reputation is built on the hallmarks our clients, partners and residents have come to rely on: deep industry expertise, industry-leading practices, consistent results and an unwavering commitment to exceptional customer service.
Portia Capital Management
The goal of PCM is to provide our clients with investment plans that are sound and meet their individual goals, but also adapt to global dynamics.
Mission: Build a trusted relationship with every PCM client and reach an understanding of their family's or organization's goals and needs. Develop a strategic plan for each client that preserves their legacy and empowers them with a customized portfolio. Educate our clients on the dynamics of the investment markets and help them become confident of their futures.