Lloyd Jones

MIAMI – Lloyd Jones, a real estate investment firm headquartered in Miami, Florida, has announced the acquisition of First Apartments, a 194-unit, a mid-rise multifamily community in East Little Havana. The property is situated less than one mile from the vibrant neighborhoods of downtown Miami and Brickell. This marks the firm’s sixth acquisition announced this year. First Apartments will be rebranded and renamed The Vibe.

For the third time this year, Lloyd Jones has partnered with ST Real Estate Holding Inc. (STRE), under the direction of Vice Chairman Patrick Lardi, to close the transaction. Back in April, the partnership acquired AVIVA Maybelle Carter in Madison, Tennessee. In June, the joint venture announced a second transaction with the acquisition of AVIVA Fort Worth in Fort Worth, Texas.

Completed in 2021, the First Apartments community was built with great attention to detail and a focus on smart home design. The property features spacious, modern apartment homes with in-unit finishes that include porcelain tile flooring, Wi-Fi enabled smart washer and dryer, and oversized terraces. These sleek furnishings are complemented by an array of premium amenities such as a resort-style pool, expansive dog park and pet wash station, remote workspaces with tech tables, and EV car charging ports.

“The immediate area surrounding the property has benefited from a surge in rental demand and is forecasted for continued growth,” says Ashley Socarras, senior vice president of acquisitions at Lloyd Jones. “We are excited to add The Vibe to our portfolio. This is a beautiful property, five minutes from the epicenter of Miami’s employment, retail, and entertainment activity. And, of course, its close proximity to the Lloyd Jones headquarters is especially appealing.”

The Lloyd Jones team continues to seek investment opportunities in the multifamily and senior housing space nationwide, with a primary focus on the Sun Belt regions.

About Lloyd Jones LLC
Lloyd Jones LLC is a real estate investment firm with 40 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Based in Miami, the firm specializes in multifamily and senior housing investment, development, and management. Investment partners include private and institutional investors and family offices around the world.

To learn more about Lloyd Jones, visit www.lloydjonesllc.com

About ST Real Estate Holding Inc. (STRE)
ST Real Estate Holding Inc. (STRE) is a real estate investment firm launched in the 1960s by pioneer Dr. Tito Tettamanti, STRE Honorary Chairman. With a focus on Switzerland and Canada, STRE has expanded its investments in the United States, Hong Kong, China, and Australia, building a historical portfolio of more than 1.5 billion USD. Att. Massimo Pedrazzini and Mr. Patrick Lardi have grown the residential U.S. and commercial Australian portfolio, valued at more than 720 million USD, over the last decade. With an experienced team and support from the Fidinam Group, STRE is able to generate long-term returns and promptly respond to changing market conditions. STRE is the real estate investment division of ST Group Holding.

Learn more at: https://stre.biz/

MIAMI- Today, Lloyd Jones, a leading multifamily and senior housing investment, development, and management firm, announces the launch of its new talent attraction campaign, The Key Is You. The multi-channel marketing and employee relations campaign includes a talent attraction video, shot in the firm’s Miami headquarters and at one of its multifamily assets in Orlando, Grandewood Pointe Apartments.

Watch the video here:

The video features interviews with members of the Lloyd Jones’ corporate, multifamily management, and senior living teams about their experience working at the company, and the firm’s benefits, culture, and plans for growth.

“The Key Is You campaign was created to acknowledge the important role our team members have had in our company’s 40-year-history of success,” said Greishka Campo, vice president of human resources for Lloyd Jones. “It represents how we select, respect, and retain best-in-class talent who reflect our core values of compassion, passion, and optimism.”

With a nationwide talent shortage, especially in industries with notoriously high turnover like multifamily and senior housing management, recruitment and employee retention is critical. With The Key Is You campaign, and a continued focus on building a positive company culture, Lloyd Jones seeks to set itself apart as a top place to work. Talent attraction is especially key for Lloyd Jones given its upcoming acquisitions and new developments.

Lloyd Jones is hiring for a multitude of on-site and corporate positions, mostly throughout Florida and the Southeast. To learn more about career opportunities with Lloyd Jones, visit www.lloydjonesllc.com/careers.

About Lloyd Jones LLC

Lloyd Jones LLC is a real estate investment and development firm with 40 years in the industry under the continuous direction of Chairman/CEO, Christopher Finlay. Based in Miami the firm has divisions in multifamily and senior housing investment, development, and management. Its investment partners include private and institutional investors and family offices around the world. To learn more about Lloyd Jones, visit www.lloydjonesllc.com.

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Watch the video here:

About Lloyd Jones LLC

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Gen Z will soon surpass millennials as the most populous generation on earth and will account for more than one-third of the world’s population.[i] Gen Z—born between 1997 and 2012—now represents 40 percent of all consumers and is also the fastest-growing segment of the rental market.[ii] Its oldest members are entering their 24^th year in 2021, and they are now graduating college, entering the workforce, and seeking apartment homes of their own. RENTCafé, analyzing more than 3 million applications processed in 2020, found that 22% of the applicants were born after 1997, and Gen Z renters accounted for the second-largest share of the rental market.[iii] What trends define this new wave of renters, and how do they differ from previous generations?

The first generation of digital natives

While millennials grew up during the evolution of the modern internet, Gen Z has never lived in a world without the internet or social media. Members of this young generation are experts at online research and expect immediate results. A report from IBM and the National Retail Federation (NRF) found that 60 percent of Gen Zs will not use an app or website if it is too slow to load.[iv] That means these renters will conduct online searches, usually from their phones, so property websites need to be optimized for mobile viewing, speed, and user experience. This up-and-coming generation’s reliance on digital means they also want to be able to apply, sign a lease, and make rental payments online.

The power of reviews

Online reviews matter to Gen Z. As part of their online research, they pay close attention to product recommendations and reviews. According to study by Social Media Link, nearly eight out of ten read online reviews before closing a transaction.[v] Because online reviews are an essential factor in decision-making for Gen Zs, having both a strong online presence and reputation management strategies in place is more important than ever for this cohort.

Generation Green

Gen Z is more concerned about the environment and sustainability than any previous generation, according to the Deloitte Global Millennial Survey 2020 (which surveyed both millennials and Gen Zs). Climate change/protecting the environment was Gen Z’s top concern.[vi] They are translating that concern into action, with environmentally conscious choices, which include living in a rental community that reflects their values. Sustainable features that appeal to the Gen Z renter include bike storage, energy-efficient appliances, smart thermostats, and LED lighting.[vii]

Spaces and places to socialize in small groups

From pods to posses, Gen Z are much more interested in forming friend groups than a household, according to a webinar hosted by Multifamily Executive.[viii] The ability to socialize with friends or coworkers is especially important to this younger demographic. What they’re looking for in a rental community is common areas where they can gather in small groups of four to eight people, including co-working spaces, lounges, community kitchens and outdoor spaces. This generation also wants social experiences that foster a sense of community, according to Multifamily Executive’s “The Next-Gen Renter: 2020 and Beyond,” which surveyed over 23,907 residents nationwide. Close to a quarter (22%) of Gen Z renters have expressed a desire for wellness classes such as yoga and meditation.[ix]

Overall, the young renters of Gen Z thrive on personalized and unique experiences. They value the convenience of technology and want to live a socially active and environmentally responsible lifestyle. As their influence and numbers grow, multifamily management companies should keep their preferences in mind as they prepare to cater to this distinct generation.

[i] https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/welcome-to-gen-z.pdf

[ii] https://www.globest.com/2021/02/22/gen-z-renters-flocking-to-smaller-towns-in-midwestsouth/#:~:text=Gen%20Z%20renters%E2%80%94the%20fastest,that%20of%20their%20millennial%20predecessors.&text=The%20remaining%20cities%20in%20the,applications%20from%20Gen%20Z%20renters

[iii] https://www.rentcafe.com/blog/rental-market/market-snapshots/trending-gen-z-cities/

[iv] https://cdn.nrf.com/sites/default/files/2018-10/NRF-IBM%20Generation%20Z%20Study%20Part%20III.pdf

[v] https://financesonline.com/generation-z-trends/

[vi] https://www2.deloitte.com/content/dam/insights/us/articles/glob53437_2020-millennial-survey/DI_2020-MillennialSurvey.pdf

[vii] https://reintelligent.com/what-landlords-need-to-know-about-gen-z/

[viii] https://www.multifamilyexecutive.com/property-management/demographics/socializing-a-big-deal-for-gen-z-including-at-apartment-communities_o

[ix] https://www.multifamilyexecutive.com/property-management/demographics/five-trends-in-gen-zs-renting-behavior_o

Mandy Doucet is executive vice president of Lloyd Jones Multifamily Management, which has 5,500 apartment units under management throughout Florida, Texas, and the Southeast. Throughout the pandemic, as other property management companies struggled with delinquent rent collection, Lloyd Jones has beaten the national collection averages—consistently collecting at least 95% of rents. Doucet shares a few strategies she and her leadership team implemented to maximize rent collection in the properties managed by Lloyd Jones.

Be understanding

As the pandemic unfolded and residents were faced with unemployment, reduced hours and furloughs, the financial impact was overwhelming. Many residents were embarrassed and anxious about their finances and hesitant to come forward. I met with our leadership team and had each community create a video from the property manager—sent via email—with the message that “We haven’t heard from you, and we want to work with you. We’re here to help.” It was a personal approach that resonated with residents and helped boost our rent collection percentages.

Offer flex payment options

We worked with residents by offering flexible payment options and updated our system to be able to accept partial payments. In addition, we paused any increases on renewals, offered shorter-term leases, if necessary, and didn’t require any break-lease fees. We also let people use part of their deposit as payment, and waived the minimal online processing fee. These measures demonstrated our compassion and empathy for our residents and helped keep people in their apartments.

Use creativity

Because of COVID-19, residents were apprehensive about letting maintenance crew into their apartments for small repairs, so we encouraged managers to create DIY guides to common repairs (accessible through the online resident portal). The guides provided instructions on basic maintenance issues such as the proper way to plunge a toilet, giving residents the option to make the repair themselves. Of course, maintenance was always available if the resident requested service. The residents appreciated our concern for their safety.

Share information about resources

Through their online resident portals, our communities let residents know about resources available to them, whether through local charities, or government agencies. We also had several properties conduct their own food drives, so residents could stop by the office for pantry essentials. And in some cases, where residents were intimidated by the complexity of applications for federal funds, we helped complete the paperwork for them.

Kindness goes a long way

Keeping our residents and our teams safe was one of our first priorities, and we were among the first property management firms to install plexiglass in managers’ offices, institute virtual tours, and make the investment in electrostatic sprayers to be able to sanitize quickly. These measures conveyed our care and concern and helped build a relationship of trust and good faith with our residents.

While there isn’t a single silver bullet to improve rent collection during a crisis, these strategies and tactics reflect our core values as a company: passion, compassion, and optimism. Our goal is always to make lives better and create communities where people feel truly at home.

Mandy Doucet has been in the real estate management business since 1995, and has a diverse background in marketing, training and resident services. In her role as EVP, she directs property operations and training development for Lloyd Jones Multifamily Management. Mandy is a CPM and holds CAPS, ARM, HCCP and C3p designations.

Inflation hawks have been howling since the policy response to the dot.com crash of 2000 that a return to a 1970s style inflation was imminent. As reasonable as some of these expectations and arguments may sound, the reality is that inflation, as measured by the Consumer Price Index (CPI), has not materialized in any meaningful way. Average inflation from 2000 to 2009 was 2.54%. CPI from 2010 to 2019 was even lower than the century’s first decade at 1.75%.

Some of the hawks would argue that consumer price inflation has been replaced by asset price inflation, a process in which excess money flows to stock, bond and real estate prices rather than consumer prices.

If they are right, we may be facing an inflationary threat on two fronts. First, like the potential energy of water behind a dam, a pent-up “potential inflation” in the form of high asset valuations could flow to consumer prices. Second is yet another massive government fiscal response (and monetary co-operation) from the Federal Reserve in reaction to the COVID pandemic.

While the pandemic has inflicted significant economic damage, the policy response has been unprecedented even compared to past crises.

A recent Washington Post story notes that “the Fed and White House appear closely aligned on policy… With Powell at the Fed, and his predecessor Janet Yellen serving as treasury secretary, neither power center regards the potential dangers of overspending as a top concern.”

Though policy and lawmakers may not publicly show inflation concerns, there are troubling signs on the horizon.

The Wall Street Journal reports that manufacturing surveys indicate “global delivery times were the second-longest on record in February” and that “factories reported the sharpest rise in the prices they pay for inputs in almost a decade, and they in turn, raised the prices they charged.”

Another story in the Post – What used cars tell us about the risk of too much inflation hitting the economy, observes that used car prices “soared 17% nationally in seven months last year.” Though not as dramatic, the uptick in prices for food and appliances followed used cars.

Commercial Real Estate as a Hedge Against Inflation

Savvy investors have long used real estate to hedge against the effects of inflation on investment and savings. While location and physical structure are important components of valuation, rental income ultimately drives commercial real estate performance.

The ability to increase rents during inflationary periods with lease renewals is crucial. While other businesses may pass along price increases, they also face margin pressure as input costs rise. In other words, higher income is traded for higher expenses.

Commercial real estate enjoys the rising rents without the same pressure on operating costs. In addition, increasing labor and materials costs make competition for new real estate development less likely.

A 2011 research paper from the University of Pennsylvania Law School Institute for Law and Economics (ILE) authored by Bradford Case and Susan Wachter took a look at actual real estate investment returns in inflationary environments.

The ILE paper chose to focus on REIT returns based on the transparency of the information and the ability to measure performance in various property types. Of particular note are the findings regarding commercial real estate returns during 1974 to 1981, the type of environment that still strikes fear in those who lived through it.

“The period 1974-1981 was the most inflationary eight years in the history of the Consumer Price Index at 9.3% per year, but equity REIT returns easily preserved purchasing power, with income and total returns averaging 10.2% and 16.3% per year.”

The study notes that while commodities may provide the highest inflation protections during significant periods of inflation, they may lose substantial value in lower inflationary environments, while commercial real estate still provides strong return characteristics.

Thus, real estate benefits from both consumer price inflation and asset inflation. An investor is well-positioned whether a significant and scary inflation returns or a more modest rise in price levels occurs.

Which Property Types Fare Best in Reaction to Inflation?

The key factor for commercial real estate keeping up with inflation is lease terms.

Multifamily housing is particularly well suited for inflationary environments. With typical lease agreements of twelve months’ duration and tenants’ hesitancy to move due to the expense, lessors can generally obtain annual rent increases.

Another advantage that multifamily enjoys, though not particular to inflation, is that tenant risk is diversified. Retail and office properties are often dramatically impacted by a single tenant, while multifamily properties can have hundreds of units.

This is where a skilled property manager can add significant value for an investor. While vacancy is always part of the commercial real estate equation, managing the vacancy rate is a critical component of success. In fact, extremely low rates may indicate that rents are too low. Efficiently managing tenant turnover is another important aspect of effective property management.

Astute management and development may take advantage of emerging opportunities. The pandemic’s onset combined with existing demographic trends indicates there may be a window to convert distressed hotel properties (or nearly developed hotels) into senior living facilities.

Be Prepared

Federal Reserve officials have repeatedly spoken of a seemingly elusive 2% inflation target. With Democratic control of Congress and the Treasury and Fed in sync, investors should expect further inflationary policy.

But as history has shown, once the inflation genie is out of the bottle, it is near impossible to contain. Investors should have a plan to combat such forces to protect the purchasing power of their savings and wealth. One tactic may be an investment in commercial real estate and, in particular, multifamily housing. An experienced, professional commercial real estate development and management company can increase the chances of success when navigating potential turbulence.

What to Look for in a Post-Pandemic Multifamily Investment Property – by Dawn Allcot

Watch the video here:

About Lloyd Jones LLC

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Lloyd Jones’ Chris Finlay and Starwood Capital Group’s James Kane discuss market dynamics and expectations for the area’s multifamily market.

by Evelyn Jozsa
Multi-Housing News

Thanks to a favorable tax environment and a relatively low cost of living, Central Florida’s economy has been steadily advancing in the past few years. The COVID-19 crisis, however, has shaken market fundamentals and put the region’s growth on hold.

Nevertheless, the bumpy road ahead hasn’t intimidated Central Florida multifamily investors, who rely on the region’s favorable demographics to sustain housing demand going forward. “Despite all the challenges 2020 presented, Orlando’s population grew by 61,000 residents, which outpaced fast-growing metropolitan areas like Atlanta; Austin, Texas, and Tampa, Fla.,” Lloyd Jones CEO & Chairman Chris Finlay told Multi-Housing News.

In the interview below, Finlay and Starwood Capital Group Managing Director James Kane provide insights on Central Florida’s multifamily market and share business strategies that might help investors stay afloat under current economic conditions.

https://www.multihousingnews.com/post/how-central-florida-investors-are-recalibrating-their-strategy/

Millennials are proving to be a dominant force in shaping trends in both real estate and retail with their strong preference for apartment living (12.3 percent plan to “always rent”), as well as their enthusiastic support of the burgeoning “subscription economy,” a growing business model that includes subscription boxes, in which subscribers receive products on a regular basis, such as Stitch Fix for clothes and Dollar Shave for razors and grooming products.[i] In addition to subscriptions, this consumer group is also turning to rental services for everything from high-end furniture to designer clothes. For millennials, subscriptions and rentals are about convenience and affordability, and that’s also why they prefer apartment living to homeownership.

The power of millennial consumers

In the U.S. there are 83 million millennials, who leverage $200 billion in annual buying power. As the largest consumer group in the economy, they wield the most buying power—and they’re choosing to spend their dollars in much different ways than previous generations, with a focus on experiences rather than ownership.[ii] For millennials, the ease and affordability of subscription boxes, rental services and the apartment lifestyle are all in close alignment; all these choices give them more time, more convenience, and more freedom.

Driving the subscription & rental economy

Millennials love subscriptions. According to a study by Deloitte, when it comes to entertainment subscriptions, such as Spotify, Netflix, and Xbox Game Pass, millennials have 17 subscriptions on average—more than any other generation—and 42 percent of them said they planned to subscribe to more services in the coming year. [iii] Subscription boxes are also highly favored among millennials, with 31 percent subscribing to subscription boxes, compared with 21 percent of Gen Xers and 8 percent of baby boomers.[iv]

Rental services, such as Rent the Runway for designer fashion, and Fernish or Feather, for furniture, are also popular with millennials, in part because the concept dovetails with the growing consumer consciousness toward more sustainability. The rise of higher-end furniture rental is also fueled in part by the apartment lifestyle; without being tied down with heavy-to-move pieces like sofas and beds, millennials are able to more freely move to explore jobs, neighborhoods, and relationships.[v]

Millennials and the appeal of apartment living

The millennial cohort is renting longer and redefining the concept of homeownership as the American Dream.[vi] With renting, millennials aren’t limited by geography, and they also avoid the hassle of home maintenance and unexpected housing costs. Millennials prioritize experience over ownership, and with apartment living, renters can enjoy amenities such as co-working spaces, on-site fitness centers, and smart technology conveniences such as package lockers—all conveniences that add ease to daily living. It’s clear that as the largest of generations, millennials will continue to have a major impact on the rental market, and that multifamily communities will need to include an array of experiences and amenities to cater to their wants and needs.[vii]

[i] https://www.apartmentlist.com/research/2019-millennial-homeownership-report

[ii] https://www.expapp.com/fan-behavior-series-millennials/

[iii] https://www.prnewswire.com/news-releases/deloitte-covid-19-accelerates-cycle-of-paid-entertainment-subscriptions-and-cancellations-301081484.html

[iv] https://finance.yahoo.com/news/millennials-shaping-u-retail-trends-210702715.html

[v] https://www.nytimes.com/2019/06/08/style/rent-subscription-clothing-furniture.html

[vi] https://www.businessinsider.com/millennials-renting-homes-instead-of-buying-2019-7

[vii] https://www.apartmentlist.com/research/2019-millennial-homeownership-report

Multifamily investment firm Lloyd Jones has acquired Arium Grandewood, a 306-unit apartment community in South Orlando. The sales price and seller was not disclosed.

Built in 2005, the garden-style community consists of a mix of one-, two- and three-bedroom floor plans. Amenities include a resort-style pool, BBQ pavilion, fitness center, volleyball court and business center. Lloyd Jones’ plans for the property include $2.7 million in capital improvements that include a two-level interior renovation package program comprising 95 percent of the units.

“The acquisition of Arium Grandewood is part of our strategic investment plan focused on established Orlando properties that are centrally located and well-positioned for value-add opportunities,” said Ashley Socarras, EVP of investments at Lloyd Jones.

https://www.connect.media/lloyd-jones-acquires-306-unit-apartment-community-in-orlando/