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Principal, CEO
Founded in 2010; principals began investing together in
Puget Sound area real estate in 2004
We are a fully diversified real estate company active in
Development Presented by Arthur Wes Larson Principal, CEO About - - PowerPoint PPT Presentation
Development Presented by Arthur Wes Larson Principal, CEO About - - PowerPoint PPT Presentation
Multi-Family and New Multi-Family Development Presented by Arthur Wes Larson Principal, CEO About Sound West Group Founded in 2010; principals began investing together in Puget Sound area real estate in 2004 We are a fully
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Our Focus: Multifamily and single family housing-
$70 million under construction: 167 apartment units and 128 single family homes under
construction
200+ units under development Also: Medical Office and National Credit Retail
Sound West Group – Our Focus
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Silverdale
Bennie’s
Barn, formerly Guilford Feed & Seed, now Farmland on Highway 21 (Silverdale Way) & Byron Street.
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Larson Farm
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Kitsap Mall
Larson Farm
was located where movie theater is presently
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Spyglass Hill Apartments
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Spyglass Hill Apartments
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4th Street Redevelopment
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4th Street Redevelopment
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Poulsbo Place Apartments
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Poulsbo Place Apartments
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A.W. Larson Building
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A.W. Larson Building
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“RENTER NATION”
Percentage of New Household formation by Renters vs.
Home owners is at a low not seen since 1962.
62% Home owners 38% Renters
MULTI FAMILY HOUSING TRENDS
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Household creation will peak in the 25 to 34 age bracket in
next 5 years
Millennial Generation: Change in “rent” vs. “own” mentality.
More disposable income but desire for portability of lifestyle (decline in confidence in housing market)
Lending regulations have tightened (Dodd Frank Act) Lack of affordability in condo market
MULTI FAMILY HOUSING TRENDS
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2014: New Units: 8,919 New Renter Households: 8,632 New Jobs: 56,000 (est. 1 new rental household for each 7 new jo 2015: New Units: 12,000 New Jobs: 51,000 2016: 11,000 2017-19: est. 20,000
Question is how many of the Units will actually be built?
Current Vacancy Rate: 3.4% vs. Historical Rate of 5.0% Source: Dupree & Scott Apartment Analysis, Vol. 38 No.2, June, 2015 SEATTLE RENTS TRENDING TOWARD $2.75 TO $3.75 PLUS PSF
PUGET SOUND REGION
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2015: Kitsap County: est. 105,000 housing units Total Rental Units: 30,000 - 35,000 New Units: 75 - 100 possible New Jobs: 2,400 Est. New Rental Households: 342 - Given in migration of
commuters from Seattle and conversion of single family rental home stock and a potential overall structural shift toward Renting vs. Owning to “for sale” product this number is likely understated.
RENTS AT 1.25 TO 1.50 PSF AND TRENDING TOWARD $1.75 TO
$2.00 PSF
KITSAP COUNTY
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JUNE 2015 - VACANCY SURVEY (O'CONNOR GROUP)
Bainbridge Bremerton Port Orchard Poulsbo Silverdale
Total
Total Units Surveyed 303 2690 1147 389 1592
6121
Total Vacant 3 25 4 1 5
39
Vacancy Rate 1.0% 0.9% 0.3% 0.3% 0.3%
0.6%
Kitsap County Vacancy Rates
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Achieving Sufficient Rent To Provide Adequate Return On
Investment
Over Building Demand Regulatory Environment
CHALLENGES
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Lower Cost Of Land Vs. King County Strong Demand And Lack Of Supply Build Efficiently Designed, “Hip” Units With Amenities, In “In Close”
Urban Locations, (Near Ferries And Jobs)
Lack Of Modern Units/Existing Stock Is Comprised Mostly Of Older,
Garden Style Units, Or Older Single Family Homes
Take Advantage Of Financing Tools Improved Regional Connectivity Via Water Transportation Return Of The “Mosquito Fleet” (Better Connectivity By Fast Ferry)?