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 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.
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.
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 homeowners how to optimize their real estate choices for mutual success.”
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. 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.
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.”
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.
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