Insights

Revitate Cherry Tree Leaders Break Down Workforce Housing Strategy on “The Multifamily Investor Podcast”

Attainable housing for blue-collar, service, and entry-level workers has dwindled to worrying levels across the country in recent years.

Recently, Revitate Cherry Tree’s Alex Bhathal and Chris Marsh, joined “The Multifamily Investor Podcast” host Scott Hawksworth to discuss developing trends and upcoming opportunities in workforce housing development.

Alex, Chris, and Scott discussed key insights and strategies for acquiring, repositioning, and managing multifamily properties for the American workforce that “are the lifeblood of American industries.”

The conversation kicked off with Chris and Alex breaking down the critical “why” behind workforce housing.
“In most cities across the country, it’s increasingly difficult for middle-income workers to buy or even rent housing in some areas in which they live…in large part due to wages not keeping up with the increased cost of living,” Chris shared.

Alex added that this segment of multifamily housing development doesn’t just represent an opportunity to support the workers that fuel our nation’s success - it’s also a savvy and safe bet for investors.

“It’s very hard to find yield in the marketplace, and workforce housing is a sector where there’s a relative safety to the investment,” Alex shared.

“These are existing assets with existing cash flows that can be improved through operational expertise and potential value-add improvements to the physical structure.”

As the conversation shifted to the opportunity presented by the ongoing housing shortage, Alex noted the investing environment created by “perpetually strong demand” for housing.

Chris added that this demand creates opportunities to scale not only investments, but also social impact. “If you’re going to have a social impact and a meaningful one, have it be a big one.

”Alex went on to emphasize that making a positive social impact through improvements to tenant communal and living spaces doesn’t have to limit returns.

“Just prioritizing the social needs and community needs of the tenants isn’t something that’s going to cost investors money,” Alex said. “In terms of the positive social impact of maintaining these workforce housing and adding amenities, it really is…a form of non-concessionary impact investing.”

“Taking the time, as we do, to really invest in a level of care and service provided to residents really does matter,” Chris added.

“I believe that this is one of those rare finds when you can do well for the community and investors by doing the right thing and prioritizing social needs."

Learn more about Revitate Cherry Tree’s multifamily investment strategies and opportunities

 

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