Darron Kattan Bio With career closings exceeding $1.5 billion, Darron Kattan, Managing Director and a multifamily brokerage specialist, focuses on properties in Central, West Central, and Southwest Florida. He has been hired by private clients with large portfolios, single properties, institutional owners, national lenders, community banks, and servicing companies of all sizes. Mr. Kattan has experience with Class A, B, and C properties as well as affordable low-income housing tax credit (LIHTC) and housing and urban development (HUD) transactions. Prior to joining Franklin Street in 2008‚ Mr. Kattan was Vice President/Investments at Marcus and Millichap for nine years. His impressive sales record has been recognized with the following Franklin Street awards: 2009 - 2014 Sales Achievement Award winner, 2010 overall company Top Earner. He was named a 2013 40 Under 40 Professional by Real Estate Forum. Mr. Kattan is also an active member of Florida University’s Bergstrom Council in Tampa, the Real Estate Investment Council (REIC), and National Multi Housing Council (NMHC). Mr. Kattan graduated from the University of Florida with a Bachelor of Science in Public Relations and is a licensed real estate broker in Florida, Georgia, Alabama, Mississippi, North Carolina, and South Carolina.
Topics Stats- Boring but Insightful Metrics Cycle Factors- This Time Its No Different Lenders- Wall Street Returns Buyers- Spike the Punch Bowl Case Studies- How Did that Happen Future- Not So Bold Predictions
Price Per Unit (2003-2014) Source: Costar – Multifamily Sales 50+ Units, Tampa Bay MSA $82.5k/unit $85.6k/unit
Price Per Square Foot (2003-2014) Source: Costar – Multifamily Sales 50+ Units, Tampa Bay MSA $90.73/ft $96.72/ft
Price Per Unit (By Decade Built) Average Price/Unit 60's Build$62,451 70's Build$50,962 80's Build$59,847 90's Build$94,599 2000's Build$108,538 Source: Costar – Multifamily Sales 50+ Units, Tampa Bay MSA
Price Per SF (By Decade Built) Average Price/SF 60's Build$67.96 70's Build$59.09 80's Build$69.54 90's Build$88.91 2000's Build$95.24 Source: Costar – Multifamily Sales 50+ Units, Tampa Bay MSA
Cycle Factors- This Time Its No Different Supply & Demand –Inventory –Buyers –Lenders Global, Political & Economy Related –Jobs –Growth –Recessions- Global and National –Regulatory –Regime Stability/Instability –Interest Rates
Lenders- Wall Street Returns New lenders every day. In 2008 couldn’t find more than a handful of lenders, now there are many options CMBS Agency (full term IO) Non Recourse Balance Sheet & Bridge Recapitalizations are Up Significantly Leveraged buying power moving up so fast its creating new wealth out of thin air.
Buyers- Spike the Punch Bowl Old Timers Fast Moving Smart Money New Syndicators Experienced Syndicators First Timers, Out of Area Buyers, Foreign Money, OPM With No Conscience Banks & Servicing Companies “Bartenders”
Buyers- Spike the Punch Bowl How Do You Identify? Who do you Align Yourself With? How Long Does it Peak, How Hard Does it Fall? –Replace the old adage of location, location, location with timing, leverage, location
Case Studies- How Did that Happen Avesta Portfolio –13 Properties, 2199 Units. Central/West Florida –Closing Price $81,363,000 ($37k/unit) –Cap Rate with Adjusted Taxes, T12 Income- 6% –Overall C Class Portfolio –South Florida Based Syndicator –CMBS 1 st Debt –Preferred Equity from Multiple Sources Including Foreign Capital –Stable Assets, Buyer Perceived Value Add Through Management Efficiencies and Increasing Rents
Case Studies- How Did that Happen Sandanay & Stonehenge –100 Units, Tampa –Closing Price $3,050,000 ($30k/unit) –Cap Rate with Adjusted Taxes, Normalized Expenses and T12 Income - 7% –C Class Deal, Needed Rehab –Foreign Buyer –Low Leverage, Non-Recourse Loan –Buyer looking for price per pound, place to park money, economies of scale with other recent purchases (4 th acquisition in Tampa)
Case Studies- How Did that Happen Windemere –180 Units Dunedin –Closing Price $10,000,000 ($55k/unit) –Cap Rate With Adjusted Taxes and T12 Income- 4.5% –C Class Deal, A Class Location –Local Buyer, Out of Area Equity –Massive Rehab, Solid Property with 20+ Year Owner
Future- Not So Bold Predictions Crash will be 2018 Unanticipated Cause—Not Interest Rates Wall Street Will Be Involved And finally, someday I will likely go back to just being a bartender. When that happens, drinks are on me!
Contact Information Darron Kattan Managing Director darron.kattan@FranklinSt.com Franklin Street Real Estate Services 500 N. Westshore Blvd. Suite 750 Tampa, FL 33609 Direct: 813.658.3355 Cell: 813.477.1993