Arizona | Ashworth Partners

UPDATE Oct. 14: See below for Part 3-

UPDATE Sept. 24: See below for Part 2-

Apartment building investment broker ABI Multifamily’s Research Director, Thomas M. Brophy is out with part 1 of a pretty in-depth ‘overview’ of water rights in Arizona this week (Part 1 of 3). This is important not just because most of AZ is a desert (duh) but because Phoenix is expected to grow by the size of Denver over the next twenty-five years (See Phoenix population to add 2.6 million by 2040, housing supply not keeping up). They’re going to need a lot more apartments but the biggest limiting factor will be the ability to provide water for that many new tenants.

Water rights critical for Arizona apartment building investors — Source: ABI Multifamily.

Brophy begins with the background so that as the story unfolds we will understand how things got to be the way they are, and most importantly, how to make sure your residents aren’t walking to the town well every morning with a big jug on their heads. Not light reading but it just might give you an edge- See part 1 here: The Motions, Notions and Commotions of Water! Part 1: Arizona Water, an Overview.

Water Rights for AZ apartment building investors — Source: ABI Multifamily

Part 2 is Continue reading Apartment Building Investors: Everything You Need To Know About AZ Water Rights, Parts 1, 2 & 3

An interesting piece from Bloomberg entitled: Private Equity Has Too Much Money to Spend on Homes talking about how hard it is for large funds to buy foreclosed homes in bulk and turn them into rentals reminded me of a conversation I had with one of my private equity clients who was consulted by Tom Barrack’s Colony Capital about doing just that (and he said don’t).

“Funds planning to invest more than $6 billion to buy and rent foreclosed homes are finding it easy to raise money. The difficulty is spending it… The folks that raised capital are worried about under- accumulating properties and how to get capital out in an efficient way, Richard Ford, a managing director in the real estate investment banking group at Jefferies Group Inc., said in a telephone interview. A lot’s being raised. Less than $2 billion of institutional capital has been spent.”

It seems like between the banks’ increasing Continue reading Private Equity Has Too Much Money to Spend on REOs-to-Rentals Via Bloomberg