Florida Population Spike Could Signal the Need for More Multifamily Housing
Florida recently crossed a key demographic benchmark: it is now home to 23 million residents, making it the third most populous state in the U.S.
This boom has been driven primarily by an influx of people exiting other regions of the country in favor of The Sunshine State. Last year alone, nearly 359,000 people moved to Florida, while roughly between 350,000 and 375,000 people have been added to the state residency rolls every year during the last decade.
What is behind this migration? The Florida economy could be one magnet. According to The Daytona Times, the state’s real GDP is expected to grow, while unemployment remains low. Meanwhile, state officials estimate tourism adds about $67 billion to the local economy, while the space industry contributes another $4 billion. State taxes could be another draw: Florida offers residents one of the lowest tax burdens in the country; there is no individual income tax. Instead, there is an average combined state and local sales tax rate of 7.00 percent.
In a recent LinkedIn post, I mentioned that the part of Florida (where I call home) — Palm Beach County — now boasts nearly 1.5 million residents. Leading employers such as Lockheed Martin, Pratt & Whitney, ADT, Carrier Enterprise, TBC Corporation, and others are headquartered there, while industries such as healthcare, construction, real estate, leisure and hospitality, and financial services are flourishing.
In other words, Palm Beach County, like the rest of Florida, is in the middle of a significant growth spurt, which is why multifamily and commercial properties in West Palm Beach and surrounding areas occupy a pivotal role in The Avestix Real Estate Fund.
The Fund will include allocations towards constructing two large multifamily housing projects that can eventually offer West Palm Beach residents access to more than 600 units in the area. Additionally, the Fund will include ground-up multifamily apartments and publicly traded, Florida-focused real estate investment trusts (REITs).
Currently, the Fund’s managers are seeking up to $100 million in capital commitments from accredited investors in exchange for an equity stake in the multifamily apartments as well as publicly traded REITs.
The Fund is managed by a team of real estate and finance professionals who offer decades of experience in global real estate markets, asset management, due diligence, finance, property management, project marketing, and project development.
Thanks in part to this experience, the Avestix Real Estate Fund aims to deliver a 5 percent annual dividend yield, that may be paid to shareholders quarterly. They also focus on long-term cash flow and capital appreciation in an effort to provide constant returns to our shareholders. The Fund allocation includes multi-family apartments and REITs, and the fund managers seek to deliver a diversified investment strategy intended to offer liquidity, yield, and capital gains to accredited investors.
In other words, the Avestix Real Estate Fund may enable accredited investors to potentially benefit from the Florida population boom by giving them an opportunity to invest in Southeastern Florida commercial real estate, and REITs — structured in a diversified portfolio that aims to provide both liquidity and dividends.
Want to know more about The Avestix Group Real Estate Fund? Read a more detailed overview here.
