If Mr. Spock were on our team here at Redfish he would have indeed said “That’s fascinating” a couple of weeks ago.  As much as we’ve tried to beam Spock (or Data for that matter) down to join the Redfish team in the past few months (for their great analytical powers and wry sense of humor), the closest we’ve come is Jake finding a set of Vulcan ears for a short fly fishing film spot he’s working on. 

So what would Spock have found fascinating?

I was on a conference call with a multifamily teaching guru (to remain un-named) two weeks ago listening to a very interesting fund raising project he’s initiated with the goal of raising enough cash up front to purchase four or five B-class complexes in secondary and / or primary markets with good emerging fundamentals.  Before any of you flinch any further at the mention of “guru”, this individual is one of the few gurus who does actually practice the vast bulk of what they preach.  We’ve followed his assessments for upwards of five years now and his track record is solid; no one hits a home run every time at bat.   The plan isn’t rocket science or something terribly novel; it’s a blind pool placing equity in good projects in emerging / recovering markets with very solid fundamentals – something he and his team are good at.  

Here’s what Spock would have found fascinating.  The primary market of interest (also to remain un-named) was at that point sitting at #6 in our multifamily rankings, with the next market of interest (yet also to remain un-named) sitting at #7 in our rankings.  Two of his top three states of interest are in the top 4 of our state by state employment growth rankings (based on a 6 month rolling average of state by state employment growth), his third choice is tied for 9th place this month.  We disagree with the un-named guru on another market discussed – while occupancies in this market are favorable, employment growth is much weaker than in the other markets, there’s a fair amount of supply on the ground and in the pipeline, and single family is reasonably healthy, lessening support for multifamily ops.  We’re updating that market this week just for interest’s sake, though by the early data I doubt it will move much….

It’s nice have the process and data validated now and then……..

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