SCOTTSDALE, AZ (May 20, 2021) – Real Estate Intelligent Marketing (REIM) of Scottsdale is joining forces with Craig Young and Nathan Ottosen of Young|Ottosen, also of Scottsdale, to launch a new hybrid brokerage venture with the aim to erase typical real estate silos by connecting commercial and single sale residential real estate services.
REIM brings deep experience and relationships with multifamily investors and developers and Young|Ottosen brings extensive new home sales including off-market transactions. The new hybrid brokerage targets small to medium size developers with a focus on urban townhomes.
Victoria Miachika and Deanne Miachika of REIM along with Young and Ottosen offer clients comprehensive services in residential real estate including single sale, forward purchase and bulk sale for lease or stabilization. Through the new venture, REIM is developing a new type of agent who better understands both the motivations of investors (buyers/sellers) and the mindset of developers. This holistic skill set guides clients to consider the entire spectrum of investment/divestment options for their assets.
Previously, apartments were built to be rented and new homes were built to be sold. With today’s hot market conditions, the limited supply across almost all product sectors has caused old models to shift, Ottosen said. Compressed CAP rates (or acceptable returns on investor capital) alongside unprecedented shortages in homes for sale are challenging what developers build and how, or even IF, they sell, Ottosen said.
Approximately 40% of Phoenix’s residential inventory was sold to investors last year, according to the Arizona Republic. REIM and Y|O recognized the need for a brokerage team who understand this fast-changing market dynamic. Traditional residential and commercial brokerages are transaction focused to their product type. According to Victoria Miachika, senior manager of REIM, “There is a growing need for what we call a ‘hybrid broker,’ conversant in market metrics driving all residential real estate products to better guide developers, investors and home owners how to optimize their real estate choices for mutual success.”
Another driver is the growing concern around affordability and access to product and land. Recognizing NIMBY-ism is a challenge for high density rental apartments, REIM specializes in working with developers in evolving townhome product which allows for increased density but with less environmental and traffic impact to neighborhoods.
REIM recognizes townhomes as a key product for developers and investors (MF or SFR) that offers optional housing to high-density apartments or low-density single-family homes.
More than 75% of renters say they are interested in living in a community of single-family homes, according to RentCafe. Built-to-rent homes are expected to hit an all-time high in 2022 and Phoenix is the top metro in the country for the most single-family rentals, according to a recent Builder article. But with the rising cost of land and growing anti-density concerns, developers are starting to look at townhomes as a growing option, according to REIM.
“Townhomes are in high demand and very short supply, smaller supply than conventional single family detached. It satisfies a couple of key demand ‘wants’ – new, reasonable size, lock and leave, more affordable, more efficient, can be infill, good for Boomers and now Gen X’ers downsizing, good for Millennials too who don’t want to be in far edges,” said Mark Stapp, real estate expert and director of the Master of Real Estate Development program at Arizona State University. “As Phoenix has matured, competition for land within urban fringe is high and suitable parcels scarce and expensive. Townhomes are more acceptable to those who hate density.”
The new REIM venture is already proving fruitful for its clients. REIM recently provided a bulk forward purchase strategy to the developer of Arise, a 14-unit single-family townhome in North Central Phoenix, and found a qualified investor group for the purchase. The property was originally slated for single sale but after reviewing the strong rental market, compressed CAP rates, cost of sale and the ease of working with one buyer (vs. 14 individuals), the developer decided to execute a bulk forward purchase strategy.
“We had originally planned our Arise development as a single family attached, individual for sale community, however the REIM team presented an alternative presale bulk purchase option with a highly qualified buyer, which resulted in the sale to a single investor. Their investment analysis and capacity to execute a broad range of disposition options created a new opportunity we had not considered,” said Randy Rochford, the Arise project developer.
As Ottosen further explains, “We are hybrid brokers with a focus on a hybrid product that combines elements of commercial real estate with residential real estate in Phoenix’s new market conditions.”
REIM’s long-time, localized Phoenix market knowledge brings a more sophisticated and data-driven approach to deals. They are keenly focused on long-term relationships and building quality win-win deals over time vs. a more traditional transactional approach.
Young and Ottosen have 30 years of on-site new home sales experience including multiple new townhome community sell-outs in Phoenix. With an accurate pulse on the urban townhome market, they provide an unmatched understanding of what works and what doesn’t in new construction along with the knowhow to develop and execute strategies for sell-out.
Real Estate Intelligent Marketing is an innovative real estate brokerage firm focused on relationships that offers distinctive commercial and residential real estate services to developers, investors and owner occupiers. We are interrupting current market thinking and curating optimal investment opportunities for investors, maximizing clients’ profits. REIM examines an entire investment strategy and matches our clients with the ideal opportunity. We redefine the marketing and brokerage industry with more robust services and systems for the betterment of our clients. REIM has access to off-market transactions, sellers and forward purchase product. Visit www.reintelligent.com.
Young|Ottosen have established themselves as the leading New Construction Sales and Marketing Team in the Phoenix Metro area with a hyper focus on Urban Infill and Luxury Townhome communities. Having represented and sold over 12 new-construction communities ranging from 4 -105 units in the urban core, Young|Ottosen truly understands current market demand and has the capacity to execute a strategic divestment plan tailored to the specifics of each community. This begins at the Land acquisition stage, through feasibility, product design, sales strategy and sellout of the community We leverage our time-tested relationships with Builders and Land owners to source lucrative development opportunities for our developer clients. With over 30 years in New Home Sales and Development, we understand the investment and risk that it takes to execute a new community – we believe that experience, and the wisdom resulting therefrom, is of paramount importance for any new development. Young|Ottosen has profound experience in the creation of opportunity in the urban core and still believes that Real Estate is a People Business.