2021 may be remembered as one of the frothiest periods for multifamily valuations, but SPI continued to deliver on its mission to find undervalued and underutilized investments at any point in a market cycle. Early in the year we identified a near term supply/demand imbalance in the San Antonio market. And, by years end, we will have expanded the portfolio by nearly 1,200 units there; specifically targeting high quality (lifestyle) new construction that is poised to experience persistent high demand. 2021 & 2022 will mark the fewest units delivered in San Antonio since 2012, and demand (absorption) is expected to stay elevated near all-time highs.
We also continued to leverage our diverse relationships in the DFW and Austin markets and completed the acquisition of another 800 units off market at pricing that is now 20-40% below recent sales comps (no, that is not a typo).
I firmly believe in our team’s ability to continue to create significant value through strategic acquisitions in the year ahead and structure them in ways that mitigate risk going forward.