Yat-Pang Au
Founder
Veritas Investments

John Sobrato
Board Chairman & Trustee
Sobrato Organization

Breakfast & Registration

Welcome Remarks

Multifamily State of Market: National vs. Northern California

M&M National Director of Multifamily, John Sebree, will present the current state of the market, comparing and contrasting trends across Northern California with key comparable apartment markets across the country. Learn how supply and demand for apartments interplay for key Northern California cities, as well as key indicators for job and wage growth. Hone your 2020 business plans with this must-attend market data and trends presentation.

Presented by:

• John Sebree, FVP & National Director, Multifamily, Marcus & Millichap

Morning Keynote: John Sobrato, Chairman, Sobrato Organization

NIMBY vs. Infinite Demand: The Apartment Industry Outlook across Northern California

Northern California economics, demographics, job growth, IPOs, wage trends and wildfires ensure nearly infinite demand for additional housing. And yet the ever-present roadblock of NIMBYism combined with more recent political pressure to establish rent controls locally and statewide also ensure that supply will remain constrained and demand unsatisfied. What can multifamily industry leaders do to meet demand for rental apartments while keeping rents affordable?

• Which cities and localities are amenable to new apartment developments?
• What techniques work to build support among community groups?
• Where are there opportunities to increase square footage without approvals?
• How much does the prospect of rent control regulations affect pro-forma rent forecasts?
• In what ways would rent control change the tradeoffs between rental apartments and for-sale condos?
• How can Opportunity Zones be utilized to do what otherwise couldn’t be done?

Networking Break

Track A – The Right Ingredients: Perspectives on Raising Capital from Active Equity Sources & Lenders

It’s been said that economics cycles don’t die of old age, yet the current expansion has been going strong for 10+ years, one of the longest in history. In addition the treasury is bouncing between 50-75 basis points lower than it was a year ago. Over $250B in dry powder is chasing real estate details, with multifamily as the prime target. How do these conditions play out for multifamily investors and operators today?

• Should equity investors invest in new deals today or wait out the uncertain end of the current cycle?
• How would rent control affect refinance underwriting, specifically lenders’ loan-to-value ratios?
• What should you tell your investors in regards to investment yield and exit timing expectations?
• Which sources are active in terms of construction and redevelopment financing?
• How do you develop a programmatic equity financing relationship with a fund or institutional investor?
• What is the best (and the worst) deal you can expect today in terms of equity and debt financing terms?

Track B – Innovation Nation: Emerging Technologies & Best Practices in Multifamily Property Management

With rent claiming an ever higher percentage of income, tenants increasingly look to their landlords to provide services and amenities previously provided off site by third parties. And where possible, multifamily operators step up in an effort to outdo the competition and attract the highest paying and most loyal tenants. However, higher rents correlate with increased unit turnover, creating a conundrum that pushes down annual net income despite higher average rent per square foot on new leases. What are some of the innovative best practices that maximize the benefit to landlord AND tenant?

• What does the data tell us about the relationship between rent and retention?
• How can property management personnel improve the tenant experience?
• When and how should interaction with tenants be automated?
• Where do you source new property management talent?
• For which services and amenities are tenants willing to pay extra fees?
• In which situations does it make sense to pay for prospect leads?

Track A – The New, New Value-Add Playbook: Updated Strategies to Rethink the Rehab Game

Value-add opportunities that once existed in large numbers are diminishing rapidly as we approach the end of the cycle, with most low hanging fruit already harvested. Standard practice of buying up and improving product from the 80s, 90s and even 2000s has become increasingly difficult to execute. Add to that “bad actors” who have used value-add strategies to increase rents by 300%+ generating a state-wide backlash and the specter of rent control, and suddenly the dog-eared value-add playbook no longer appear to work at scale anymore. What is the new recipe for low-risk, high-return multifamily investment?

• How does risk and reward compare between value-add and new build, today?
• Which submarkets of Northern California are the best-kept secrets for acquisition?
• When should you cannibalize units for other uses such as club houses, gyms, office space or playrooms?
• What smart technologies, third party services and renter apps should you consider?
• How much should you spend per unit? How much should you raise rents?
• When should you consider branding or rebranding your property? How do you do it?

Track B – Tariffs, Wildfires & City Councils (Oh My!): Secrets of Multifamily Design & Construction

Nowhere in the country is it harder to get approval for and construct new apartments than Northern California, and the San Francisco Bay Area, specifically. Anti-development sentiment from home-owners (voters), materials & labor costs (tariffs & taxes) and even climate change are seemingly conspiring (colluding?) to make it nearly impossible to build or rebuild apartment properties. How do savvy and experienced players use little-known design and construction strategies to make an end run around barriers that are simply too high for everyone else?

• How do you work with communities who would otherwise stop you from building?
• What should you know before repositioning a property to a new use or tenant mix?
• When is co-living the answer? How is co-living being received by cities, developers and renters?
• Is modular ready for primetime? What other ways can you reduce construction costs?
• How do you prepare your parking needs for the driverless future?

Networking Lunch

Lunch Workshop – Tax Free Forever: New Information Just Released about Opportunity Zones and Tax Policy Changes

Join this workshop to get the latest updates and changes to Qualified Opportunity Zones just released out of Washington. Recent changes open up new avenues of value creation, real estate deal structuring, advanced tax credit and incentive strategies.

Workshop Leader:

• Mike D’Onofrio, Managing Director, Engineered Tax Services

Closing Remarks & Networking Reception

Conference registration does not automatically qualify you to participate in a Roundtable; separate registration is required. If you are interested in participating, contact Scott Milliken at scott@greenpearlevents.com.

Active Ground-Up Developers Roundtable

This closed-door session brings together multifamily ground up developers and builders to share challenges in apartment and condo development, with the goal of exploring ideas and solutions to those challenges.

Operational Excellence Roundtable

This closed-door session brings together apartment owners, operators and managers to discuss shared challenges in multifamily management and operators, with the goal of exploring ideas and solutions to those challenges.

Founded in 1971, Marcus & Millichap is a leading commercial real estate brokerage firm focusing exclusively on investment sales, financing, research, and advisory services, with close to 2,000 investment sales and financing professionals in over 80 offices throughout the United States and Canada. The firm has perfected a powerful property marketing system that integrates broker specialization by property type and market area; the industry’s most comprehensive investment research; a long-standing culture of information sharing; relationships with the largest pool of qualified investors; and state-of-the-art technology matching buyers and sellers. In 2018, the firm closed nearly 10,000 transactions with a sales volume of approximately $46.4 billion.

Institutional Property Advisors (IPA) is a unique platform created to support the needs of institutional and sophisticated private investors. IPA is centered around a select national network of institutionally qualified brokerage professionals and supported by a robust technology platform and highly regarded research. IPA’s unique combination of real estate investment expertise, industry-leading technology, superior support services and acclaimed research will offer customized solutions for the acquisition and disposition of institutional multifamily properties and portfolios.

Marcus & Millichap / IPA Multifamily Forum: Northern California
Thursday, September 26, 2019
7:45 AM – 3:40 PM

Venue:
Crowne Plaza Foster City-San Mateo
1221 Chess Drive
Foster City
Google Map

“I enjoyed the conference and thought it was very well done. The economic presentation was excellent as always and the keynote was really terrific.”

“I thought that this was the most successful apartment forum I’ve participated in by a quantum amount.”

“The panel I moderated went very well; the feedback I received was excellent (the best panel of the day I heard!). I was honored to participate.”

Speaking Inquiries:

Amanda Powers
(646) 783-3952
E-mail me

Registration:

Scott Milliken
(646) 862-9912
E-mail me

Sponsorship:

Amber Collins
(646) 783-3940
E-mail me

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