Brian D. Milovich

Urban Investing Challenges Create Upside

By Brian D. Milovich / February 12, 2024

Urban investing has always been challenging. Usually, it involves investing in an up-and-coming city pocket. Developers work in tandem to create new neighborhoods. Restaurants, bars, and retail shops open as new amenities. Adventurous people move into apartments and condos to give the neighborhood a soul. Everything feeds off of one another to generate a palpable energy. This is what makes urban areas great.

Read More

Top 4 Takeaways from the 2024 NMHC Apartment Strategies Conference

By Brian D. Milovich / February 9, 2024

Thousands of real estate professionals descended upon San Diego to attend the NMHC Apartment Strategies Conference and Annual Meeting. There, a distinguished lineup of multifamily experts provided insight. Here are four main takeaways from the conference.

Read More

Why NAV should be calculated by a trusted source

By Brian D. Milovich / January 30, 2024

Non-traded REITs calculate NAV (Net Asset Value) in many ways. Some perform third-party appraisals on every property. This can be a true arms-length analysis. Often, though, it’s influenced by the one ordering the appraisal. Additionally, appraisals are backwards-looking and may not reflect current values. Our preferred way to calculate NAV uses inputs from both the broker and appraiser communities. For extra scrutiny, an independent auditor reviews our NAV models. This is to ensure the result conforms to market standards.

Read More

Why real estate is the next asset class to outperform

By Brian D. Milovich / January 19, 2024

It’s one of the few major asset classes that hasn’t recovered yet. The stock market was up 24% in 2023. Bond yields fell significantly from highs earlier in the year, meaning that prices soared to end 2023. Even Bitcoin rallied and returned 150% for the year. Apartments are attractive as they remain 20-30% off their highs from early 2022. Between improved cash flow and appreciation potential, multifamily real estate is set to outperform in 2024.

Read More

5 Predictions for the Multifamily Investment Market in 2024

By Brian D. Milovich / January 5, 2024

1. Phenomenal buying opportunity as time runs out for many owners.
2. Considerable new apartment supply creates tepid rent growth.
3. Insurance and other expenses will remain elevated, causing NOI (net operating income) to be flat or down from 2023.
4. We’ll get clarity on the 10-year US Treasury by Q3…either 3.5% or 5.5%.
5. Cash will be trash again.

Read More

Apartments don’t usually return 20%

By Brian D. Milovich / December 15, 2023

Since 1978, apartment investments have produced a 9.3% annual return over rolling 10-year periods. There is not one 10-year period where apartments lost money. This is without using leverage and based on institutional properties and ownership. Apartments have been resilient and are known for stability, not excess risk-taking. Now that values are down from the peak by a wide margin, we must recalibrate expectations. Should they be even higher because of the great buying opportunity? Should returns be lower with more uncertainty and higher debt costs? It depends on the strategy and appetite for risk.

Read More
FAQs

Answers to three questions investors are currently asking us:

By Brian D. Milovich / December 12, 2023

1) What are the top three danger signs you see in deal prospectuses you are reviewing?

1) Negative leverage. Some is ok if the business plan warrants it, but in today’s environment, the focus should be on positive cash flow. 2) Short-term rent growth. Most markets have an influx of new apartment supply which will push down rents and keep them flat. Prudent underwriting has below-average rent growth in the short term. Click here to see the rest

Read More
FAQs

Answers to three questions investors are currently asking us:

By Brian D. Milovich / December 7, 2023

1) Why should I commit funds to multifamily now?

Multifamily is resilient. According to NCREIF, at no point in the past 45 years has apartment investments produced a negative return on a 10-year hold. With values well below peak pricing, this is an opportune time to buy.Click here to see the rest

Read More

Two Lessons from Charlie Munger

By Brian D. Milovich / December 7, 2023

“He often said that the key to investing success was doing nothing for years, even decades, waiting to buy with ‘aggression’ when bargains finally materialized.” Great investors need to fully believe in their investment thesis and wait patiently to deploy considerable capital at the opportune time.

Read More
FAQs

Answers to three questions investors are currently asking us:

By Brian D. Milovich / December 1, 2023

1) Will Calvera’s ratio of debt/equity for acquisitions change in 2024?

I’m starting to see some acquisitions pencil to 70% loan-to-value (LTV) which is a big improvement from 9 months ago when it was closer to 55% LTV. Our fund has a LTV limit of 75% for any single asset and 65% for the portfolio. We find it promising to be within those ranges as we seek acquisitions in 2024. That means more properties for the Calvera Income and Growth Fund.Click here to see the rest

Read More

CONTACT
SAN FRANCISCO OFFICE:
2 Embarcadero Center, 8th Floor
San Francisco, CA 94111

MINNEAPOLIS OFFICE:
729 Washington Ave N, Suite 600
Minneapolis, MN 55401

GET INSIDER UPDATES

GET INSIDER UPDATES

© 2024 CALVERA PARTNERS