Cove Investments Blog

Fears of An Apartment Exodus

Over the past month, there’s been no shortage of articles in the popular press describing how COVID has affected consumer’s housing preferences. Broadly speaking, the narrative describes a rush from apartments in the city to single-family homes in the suburbs. Taken to the extreme, a major shift in demand trends would present problems to apartment investors like us. Therefore, we wanted to dig into the data a bit and share some of our initial thoughts. There’s no doubt that our new reality has shifted renters’ preference for single-family homes at the margin. In a global pandemic where work from home

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Managing Apartments During COVID

We and our partners have remained intensely focused on operations and tenant engagement since early March. For now, our on-site property management teams have done a great job navigating the operational challenges of COVID. We’ve found ways to manage work requests, rent collections, and leasing engagement within the constraints of social distancing. According to the National Multifamily Housing Council (NMHC), collections have been running in the low 90s across the US. While lower than the comparable periods in 2019, this is much better than we and others in the industry feared at the onset of the crisis. This data is

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December 2019 – Looking Back, Looking Ahead

December has been a time of reflection here at Cove Investments. As the days grow short and the new year (decade) approaches we’ve been thinking about how we can better serve our investors and our broader community of investors, partners, and friends.   By conventional measures, our first year has been a rousing success. Cove Investments participated in 4 deals consisting of more than 1,000 apartment units with a transaction value (equity and debt) exceeding $80 million. While acquisitions are important milestones, that’s not how we measure success. Anybody can buy a property. It’s easy to overpay. Our results will be evaluated

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Institutions Increasing Exposure to Real Estate

Looking at the macro environment, we’re struck by how much has changed since last month’s comments.  In early October it seemed a foregone conclusion that we’d soon face our first recession since the Global Financial Crisis (GFC). Capital markets couldn’t have been more clear in their signals: bond yields were collapsing, the yield curve had inverted, credit spreads began to widen, and stock market volatility increased. For those less familiar with this stuff, it was simply the market’s way of warning that tough times lay ahead.  Only a few weeks later global equity markets have rallied to new all-time highs, the yield curve has steepened, and

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