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Despite some lender pullback from the apartment sector and fears that past rent and occupancy growth can't be sustained in some markets, Insula Cos. remains optimistic about the future of the multifamily sector along the Gulf Coast.
Thus far in 2016, the Sarasota-based company has invested more than $100 million to acquire rental units. Insula spent $29 million last month to buy the 212-unit Calibre Bend Apartments in Winter Park.
The company has purchased 26 communities valued at $450 million since its formation in 2009. Today, the company owns 18 communities, containing about 3,000 rental units.
Jeff Talbot, an Insula principal, says while new supply hitting the market is a concern, the company is still seeking buying opportunities.
“From our perspective, the multifamily market along the Gulf Coast — and we focus on Tampa, Orlando, Lakeland and are based in Sarasota — remains strong,” he says.
Between now and 2018, Talbot thinks consumer demand will remain steady, and that rental increases will be in the 3% range, down slightly from recent years.
Another big question mark, he says, is whether capital will remain abundant from government sources, private individuals and banks.
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