We can’t complain about the heat anymore, as we had a big cold front sweep through Austin on Sunday that made for a chilly Halloween last night. The cold temperatures required a few costume changes and updates, but overall the night got high marks from all the kids. Across our office we had the entire cast from Moana, Minnie Mouse, a collection of Mario Bros characters and Ted Lasso—with a couple princesses and pirates for good measure. We hope you all had a great Halloween and are settling in for a great last 60-days of 2023.
Finishing 2023 Strong
At Wildhorn, we’re planning to have a really strong end to this very strange year. Our first Build to Rent project will be breaking ground and we are busy working through the second potential deal in that platform. Our portfolio keeps us busy as well, as we stay on top of the weekly rhythms of leasing and turning units. This is also budget season, and we’ll be finishing up our operating plan for each of our assets. With some uncertainty in the market dynamics, it’s an interesting time to try and peg what next year looks like—both onsite and in the larger economy.
Changing Economic Environment
While The Fed held rates steady at their meeting this week, there is still a lot of uncertainty surrounding what they will do next-and how the economy is faring overall. A recent Wall Street Journal survey amongst economists showed over 50% think we’ll avoid a recession. That’s hardly a resounding consensus. Meanwhile, consumers have now racked up over a trillion dollars of credit card debt and are falling behind on car loan payments at an accelerated clip.
On the acquisition front, we are hearing more and more chatter about loans dropping into default and lenders taking back the keys on a few deals. With the amount of smoke we’re seeing, there has to be some truth to all of that. We expect it will be Q1 before anything really starts to happen on that front. That said, we always have our ear to the ground and want to be in position to move quickly if given the opportunity.
We hope you all have a great November and enjoy some quality family time over the Thanksgiving holidays. No doubt we all have much to be grateful for!
With Gratitude, – Andrew
Build-to-Core: Reflecting On A New Strategy for Wildhorn
The term “Central Texas Boutique Real Estate Investment Firm” is the quick-hand version of how we describe our business, but it represents a philosophy deeply ingrained in our approach. If you throw that term in a search engine, you’re going to see a big variety of things come back at you that represent all the various components involved in any sort of Real Estate deal. You’ll probably see developers pop up. Money managers and equity groups. Maybe a REIT. Perhaps a property manager or two. And you’ll see firms representing all the different asset classes, from Office to Retail to Industrial to Multifamily…
Our Top Picks: Real Estate and Economic Resources Worth Exploring
Podcast: Andrew recently chatted with the Passive Wealth Podcast and talked about his real estate journey. From building an 76-unit personal real estate portfolio to founding Wildhorn Capital, it’s a great story we love to hear.
Webcast: A recent stat caught our attention: 63% of renters now opt to rent for reasons beyond financial constraints. Real Page’s webcast covers real behaviors, motivations and priorities of 2,000 apartment renters across the U.S.
Article: When evaluating investment opportunities, it can be challenging to gauge the performance of a property, which is where NOI can come into play. This article can help you understand the ins and outs of this crucial metric.
Property Posts: Catch Up on Apartment Happenings!
Henry Heights: Henry Heights just wrapped up their second annual Halloween event, and it was a screaming good time! We loved seeing all the spooky costumes!
Providence Town Homes: A big thanks to Mama’s Tacos for stopping by Providence Estates! We love supporting local food vendors and having delicious food available onsite!
Central Texas News: The Latest Economic Developments
Job creation picks up in Austin area:
Opportunity Austin recently estimated that companies added or pledged to add more than 10,000 jobs through expansions and relocations from July through September.
Key Takeaway: By Q3, the region has surpassed job pledges made in all of ’22.
UK company to build its largest North American manufacturing plant in San Antonio:
JCB plans to build a 720,000-square-foot structure on a 400-acre site on the city’s South Side. The company plans to hire more than 1,500 employees for the Alamo City facility over the first five years.
Key Takeaway: This is the largest economic win for San Antonio since Toyota decided to manufacture trucks in the early 2000s.
Austin-area housing inventory rises as affordability challenges mount:
The current inventory level across the MSA demonstrates a steady increase in supply over the past year, yet most homes are not attainable for the average Austin resident.
Key Takeaway: Both the rise in inventory and the dip in median home sales prices are symptomatic of higher mortgage rates.
Thousands of homes set to built 15 miles south of Austin:
Austin-based developers have finalized a deal with Buda city officials to advance their plan for a 2,300 home subdivision.
Key Takeaway: The new agreements mark a major step in what’s been an at-times contentious negotiation to bring the massive Persimmon subdivision online.
Deep Dive: How the Texas Triangle will connect to Northern Mexico
Source: San Antonio Express News
The Texas Triangle, a region that links Dallas-Fort Worth, Houston, Austin, and San Antonio, is an economical powerhouse. It’s pretty unique in the U.S., with five of the 13 most populous cities clustered within 250 miles, and in a single state. Plus these cities have very close economic ties, as shown by the way people and goods move between them.
But you could say the Texas Triangle doesn’t just stop in Texas; it’s also part of a larger economic web connecting to Northern Mexico. These cities constitute an increasingly productive network of automotive industrial firms actively shipping a multitude of products to the cities within the Texas Triangle, especially on the I-35 highway to San Antonio.
The Texas Triangle will keep growing and getting stronger – the census estimates the region will have a population of 8.3 million people by 2050 – so the challenge will be to ensure the growth fuels the state that the people who live here.
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Andrew Campbell is a native Austinite and Managing Partner at Wildhorn. He is a real estate entrepreneur who first broke into the business in 2008 as a passive investor. In 2010 he transitioned into active investing and management of a personal portfolio that grew to 76 units across Austin and San Antonio. He earned his stripes building and managing his personal portfolio before founding Wildhorn Capital and focusing on larger multifamily buildings. At Wildhorn, he is focused on Acquisitions and maintaining Investor Relations, utilizing his marketing and communications background to build long-term relationships.
