The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
why aren't all 18 resolved? a statement only gets an assessment when the public record can support or contradict it. opinions and what-ifs never can, and 0 checkable ones are still open, waiting for their date. predictions held up or didn't; assertions are supported or contradicted. on every card: ▮▮▮▮▮ certainty · ▮▮▮▮▮ debate potential. speakers are clickable
Broyer: Austin, Dallas, and Tampa have not led long-term rent growth
“If you step back and look at the data, you look at over the past 10 years, 20 years, it's not the Austins, the Dallases, the Tampas of the country that are performing the best Because we're solving for rent growth.”
Broyer: Newbrook avoids real estate acquisitions in California and New York
“We do not touch California. We don't touch New York. These places where you don't know if there's going to be restrictions put in place that are going to impact our ability to manage the assets the way we need to, or that are going to increase taxes on the sal…”
Broyer: Multifamily real estate values dropped about 30% from peak
“After about a year and a half, to Robert's point of getting to that six percent cash on cash, finally saw these values Drop about 30% from peak, and then we were able to start buying below replacement cost.”
Newbrook targets two-thirds of investment returns from cash flow
“For us, to Robert's point, we look to have about two thirds of our return to come from cash flow. That is the best risk adjusted way for us to look at these versus a floating rate buyer that might not care about cash flow and might rely on appreciation at the …”
Broyer: Newbrook underwrites property exits assuming a persistent buyer's market
“We underwrite that we're going to be selling them in an environment similar to today, which is largely a buyer's market.”
Broyer: Multifamily investing is far less crowded due to overleveraged syndicators
“Multi-family is far less crowded than it was a couple of years ago, given the number of people that have floating rate debt, that are over levered, that are on the sidelines, that can't raise capital.”
Broyer: Real Estate Insurance Costs Have Fallen Drastically Over Past 12-24 Months
“Although insurance has come down drastically over the past 12 and 24 months, We're seeing a lot of renewals where we're decreasing our insurance costs across the country.”
Broyer: Non-traded REITs bought $20B in multifamily in 2021
“So you had these non-traded REITs that were actually buying about twenty billion dollars worth of multifamily in 2021. About 10% of all transactions in the multifamily space were being traded to these non-traded REITs.”
Broyer: Newbrook Acquired Charlotte Property at 6 Cap with 4% Financing
“We were able to buy the deal with eight years of financing in place at about a four percent rate, and we bought it around a six cap, so at 200 basis points of positive leverage.”
Broyer: Newbrook Achieved 13% Rent Growth on Charlotte Asset with 20% Renovated
“Today, we've had 13% rent growth in the past 16 months on that asset, and we've only renovated 20% of the community, so we know that we have rents that are heading the right direction, and we have strong tailwinds for the next 12 to 24 months as we continue to…”
Newbrook underwrites $12K to $20K per unit for property renovations
“Most of the properties we buy, we typically underwrite somewhere between 12,020 thousand per unit for renovations.”
Broyer: 70% of Newbrook's rehab equity goes into unit interiors
“I would say 70% of the equity allocated for rehab is going to the interiors.”
Broyer: Newbrook secures 50% to 70% equity before going hard on deals
“So we know that when we're buying deals, we have about
50 to 70% of the equity already raised at the time that we actually go hard on the transaction.”
Broyer: Conservative Insurance Underwriting Disqualifies Many Deals for Newbrook
“We tend to underwrite in a manner that includes more of a worst-case scenario from an insurance perspective, and by default, we end up not being able to pursue those deals because it just doesn't meet our returns threshold.”
Broyer: Multifamily acquisition volume doubled between 2019 and early 2022
“When I met Robert in January of twenty-twenty-two, multi-family, the acquisition volume had doubled since twenty-nineteen.”
Newbrook underwrites roughly 100 multifamily deals per month
“We end up underwriting about a hundred deals a month.”