As Spring Approaches, Strong Rental Market Remains
So far, 2023 has been marked by continued uncertainty in housing and capital markets. Many renters who dream of home ownership may remain stymied by high mortgage rates and sticker shock. After all, the average home price in America is now hovering near $370,000. According to the National Association of Realtors, the runup to that lofty price included 129 consecutive months of year-over-year price increases, the longest-running streak on record. This will continue to spur rental demand.
There’s no denying that the lack of quality, affordable rental properties in America is reaching crisis proportions. This is especially true regarding affordable workforce housing—properties defined as having rents 30 percent or less of the average median income (AMI). We believe housing that is attainable in price for local workforces will be in strong demand no matter the market cycle.
Fortunately, DLP Capital has many developments in the pipeline aimed at putting a dent in the shortage of quality, affordable apartment units. The National Multifamily Housing Council (NMHC) predicts a need for 4.3 million more apartments in the U.S. by 2035, with Texas, Florida, and California accounting for 40 percent of future demand. DLP Capital remains strong in the Sun Belt region, which will account for much of this demand and continue to drive multifamily values. By 2024, we’re proud to say that we will begin delivering on 2,500 new, quality units—and we’re hoping to eventually 10X that number as we focus on helping to solve the affordable housing crisis in America.
Without a doubt, there are compelling opportunities for additional investments in quality multifamily aimed at area workforces. DLP Capital also sees excellent opportunities for developing and constructing new single-family rental communities. Build-to-rent communities are here to stay, and it is a market sector that will continue to grow by leaps and bounds. Our Building Communities Fund, which helps us develop new workforce housing communities, includes single-family rentals, multifamily, and RV and mobile home communities, among other investments.
While we are seizing upon such opportunities, the ability of many other large-scale operators to build upon their rental portfolios may be limited, as economic uncertainty puts a damper on capital availability, keeping many market participants on the sidelines. Fortunately, we have discretionary capital that allows us to fill capital voids when presented with compelling opportunities to provide debt, equity, or both.
If you’re interested in finding out about the communities DLP Capital builds—or acquires to make better—or to hear my expanded thoughts on the current market, I encourage you to join me during one of our upcoming Capital Dinners or webinars. You can find more information on those events here.
Latest News from DLP Capital
DLP Capital Acquires $33 Million High-End RV Resort in Central Florida
DLP Capital acquired Ocala North RV Resort for a purchase price of $33 million. The resort spans 73 acres in the heart of central Florida’s horse country with 385 sites for RVs and cottages. Ocala is a pristine area known as having one of the most prolific equine industries in the world, with 600+ thoroughbred farms and training centers, as well as featuring Ocala National Forest, which has hundreds of lakes, rivers, and freshwater springs. This acquisition follows on the heels of our development of Island Oaks RV Resort near Jacksonville, which opened in 2022 and includes 385 RV pads.
Garret Askew, 25-Year Multifamily Construction Leader, Joins DLP Capital
We’re excited to announce that Garret Askew has joined DLP Capital as Managing Director of Construction where he will oversee all aspects of construction for a pipeline nearing $1 billion in single-family and multifamily rental communities, among other developments. Askew brings to DLP Capital more than 25 years of leadership in development and construction, having served in senior positions at some of the nation’s preeminent multifamily investment and development firms. He joins at a pivotal time as DLP Capital expands its acquisition and development of rental communities aimed at helping to solve the affordable workforce housing crisis in America.
DLP Capital Leadership Summit
Last Thursday we were presented with fantastic content at DLP Capital’s first Virtual Leadership Summit. I kicked off the event by sharing my “8 Leadership Lessons on Great Leaders” that I’ve learned over the years from observing both good and bad leaders.
Here are those 8 lessons:
- Great leaders choose to lead.
Being a leader is a choice that involves commitment, discipline and focus.
- Great leaders make hard decisions that solve problems.
They make things easier for other team members by taking control of a problem, setting a course, and resolving the issue.
- Great leaders are always learning.
They listen more than talk and are always reading as well as learning, especially from their own team members.
- Great leaders are prepared to win.
They use time wisely and do the necessary pre-work. “Most have the will to win. Few have the will to prepare to win.” - Bobby Knight
- Great leaders generate consistent results.
They know how to motivate people to GTD (Get Things Done)... which creates wins… which motivates more people to follow them.
- Great leaders are clock builders.
Instead of micromanaging for a short-term win (time telling), they build an empowering culture for long-term success (clock building).
- Great leaders encourage and demand.
They are a supportive cheerleader while also holding people accountable and maintaining the highest standards.
- Great leaders are genuine and transparent.
They do more than they ask of others and are open about their goals, motivations, and current state of being.
That last one (doing more than they ask of others) is a good example of what we call “servant leadership,” which happens to be DLP Capital’s core value of the month.
We also heard from featured speakers Tim Elmore, Aaron Bare, and Eric Maddox. Aaron talked about Exponential Thinking and his 7 Universal Truths. Eric shared the story of what he learned about empathic listening as a Defense Intelligence Agency interrogator for the U.S. Army in Iraq.
If you’d like to further enhance your leadership skills and abilities, don’t miss our Elite and Prosperity Leadership event taking place from May 21-24 in Asheville, NC. More information on this signature event can be found here.
Driven for Greatness
Driven 4 Greatness (D4G) is a DLP firm-wide meeting we’ve conducted for over a decade. It all started when I was reading a book, "The 21 Irrefutable Laws of Leadership" by John Maxwell, and loved it so much that I invited teammates to join in reading it. This led to biweekly meetings to review another book together, and then another. To date, we’ve reviewed over 150 books, including some we’ve read multiple times. D4G has remained a voluntary group at DLP Capital and, as we’ve grown, meeting membership has expanded to more than 50% of our team members. With 200 people now in the group, we have conversations that are more engaging and diverse in opinions than ever. Two DLP members volunteer to lead us through separate presentations and discussions on the chosen book each month, with the group meeting a half-hour before the usual workday begins.
Last month, we read “The Magic of Thinking BIG” by David J. Schwartz. Here are a couple of my key takeaways:
- Belief and a positive attitude is central to success.
- Don’t fall prey to ‘Excusitis’ including “I’m not smart enough”
- The size of your thinking determines the scale of your accomplishments.
This book is great for:
- Those who may be struggling with self confidence
- Those who are feeling unsatisfied with what they’ve accomplished in their life up to this point
March 1: WCICON23 in Phoenix, AZ
DLP Capital is joining the White Coat Investors group for WCICON23. While there, we are hosting a Capital Dinner at the JW Marriott Desert Ridge. Learn about our funds’ performances and how you can make the best investment decision possible with DLP Capital.
March 8–10: Best Ever Conference in Salt Lake City, UT
Join 1,200+ of today’s leading commercial real estate operators, investors, podcasters, and influencers at the brand new Hyatt Regency in Salt Lake City for three days of learning, laughing, and making deals. Whether looking to scale your multifamily syndication business, purchase your next retail or mobile home property, or looking to use wealth to make an impact on the world, the Best Ever Conference will put you in the room with the right people to help build your skills and reach your goals. Register now and use code DLP23 to save 20% on your ticket.*
*Note, you must purchase a VIP or Conference Plus ticket to access DLP Capital’s conference content.
"Generosity is not about putting others first. It’s about treating people better than they expect – and expecting nothing in return. Showing care is as much about the respect you grant as the time you give."
— Adam Grant, Organizational Psychologist, Author, host of the TED podcast 'WorkLife'