With approximately three decades of commercial real estate experience under his belt, Mac Crowther is the principal for Apartment Realty Advisors’ Central office which is based in Kansas City. ARA is the largest privately held, full-service investment advisory brokerage firm in the nation that focuses exclusively on the multi-housing industry. Over his career, Crowther has led acquisition and sale transactions totaling more than $1 billion in apartment, office, retail and industrial projects, land development and sale/leaseback agreements across the country. His client list ranges from large pension fund advisors and corporations to individual investors which have involved Mac in investment transactions, not only in Kansas City, but throughout the United States.
Compared to other assets in commercial real estate, how are apartments doing?
Apartments both in terms of operating fundamentals and being attractive as an investment are doing well. (A message from the ARA chairman for fourth quarter, 2009, was upbeat, and said “We’re still feeling the effects of the “doubling up/moving home/shadow market alternatives” phenomenon until U.S. employment improves. The silver lining is the dearth of new units being started …. Our industry remains positive and confident. It’s sort of like smiling while getting a flu shot; we know the temporary pain will go away and in the end, we’ll be very healthy!”)
In your estimates, what percentage has transaction volume decreased when comparing 2008-2010 to 2003-2007?
The decline in transaction volume is around 60% in 2009, but improving in 2010.
How far have multi-family values declined in that time?
Values have declined approximately 15% to 20%.
Tell us about a transaction you’re currently involved with.
A present offering I’m really excited about is the Riverstone Apartments (below). It’s a recently developed, fully stabilized Class A apartment complex located in the “Northland” area of greater Kansas City. The asking price is $36,500,000.![Bldg 1 & Fountain[1]](http://metrowirekc.com/newsletters/wp-content/uploads/2010/03/Bldg-1-Fountain1-300x225.jpg "Bldg 1 & Fountain[1]")
ARA is nationwide. How is the Kansas City market compared to the national multifamily landscape?
Kansas City for the most part is smaller than many other major offices for ARA; i.e., Dallas, Houston, Boston, Denver, etc. However, KC is a preferred investment location due to its predictability and stability.
Tell us a bit about your personal life and interests.
My personal life centers around my family and friends. I stay physically active as much as possible. I have two grown daughters living in Denver. The oldest practices law and the youngest is in commercial real estate, concentrating on retail leasing. My wife Mary and I have been married 40 years.