Carl Shorett

Multifamily Real Estate Development at AVB in Seattle

[Carl Shorett @cshorett]

@buildhomez To the point where the institutional capital needed to actually build these homes are reconsidering their appetite for development investment. Seattle is viewed in the same risk category as LA or Boston - not a good place to be.

[Carl Shorett @cshorett]

@buildhomez The script has flipped and progressive politics has finally accepted that supply is important to affordability and are loosening land use policy, but are simultaneously doubling down on operating regulations.

[Carl Shorett @cshorett]

@buildhomez Gotta keep the architects and land use attorneys employed. Shame this bill is getting so watered down - it (was) the best supply-side housing bill out there this year.

[Carl Shorett @cshorett]

@buildhomez Yes - very much so. Eastside push towards lower AMI levels is a huge drag. Seattle MHA has its own issues. Well calibrated MFTE helps but 50% AMI is real deal killer.

[Carl Shorett @cshorett]

@buildhomez Notice periods are challenging but larger management companies can work through this, just causes unnecessary friction. Fee regulation is only a concern if it attacks utility passthrough / bulk internet / tech fees. Job growth and rent control are primary risk.

[Carl Shorett @cshorett]

@TheWeezGuy @hitsamty Panes themselves - higher quality glass that doesn't show deflection from this angle.

[Carl Shorett @cshorett]

@buildhomez This is biggest factor in institutional developers keeping Seattle on the sidelines of their capital allocation strategies. Backdoor rent control is existential threat that lingers even on minds given lack of state pre-emption.

[Carl Shorett @cshorett]

@loganb @benmaritz Yep - it's a huge issue that has flown under the radar this session. Essentially a tax shift from homeowners to renters and office / industrial tenants. Bad policy that is getting worked by industry but we're swimming upstream this session against a number of bills.

[Carl Shorett @cshorett]

@andyrandles @buildhomez Office of Housing sees the MFTE program as a handout to developers and don't understand the stimulatory effects to supply. 🤷🏼‍♂️

[Armand Domalewski @ArmandDoma]

the most underrated issue in housing policy today is condo defect liability law imo

[Carl Shorett @cshorett]

@loganb Socially detrimental in what way? Just cost benefit vs more macro solutions?

[Carl Shorett @cshorett]

@benmaritz This has been on my mind but I have to imagine SPS factored this into their calculations, right? Surprised how tight to the chest they are keeping their data / assumptions.

[Carl Shorett @cshorett]

@MarketUrbanism @bobbyfijan Integrated as in panel ready dishwasher / fridge? Or unitized w/d?

[Carl Shorett @cshorett]

@loganb As someone with a two year old - never underestimate the innate desire of kids to put rocks down holes.

[Carl Shorett @cshorett]

@benmaritz @loganb @cmorr0w The fact that there is no centralized resource to post affordable apt vacancies is insane. Especially w/ Zillow in our backyard.

[Carl Shorett @cshorett]

@benmaritz @loganb @cmorr0w Fully agree w/ this perspective, but given how many income limited apts exist, wish the city would focus on opportunities to reduce frictional vacancy. In our portfolio even if we can find residents that have a need, the paperwork + timeline to occupancy remains a major obstacle.

[Carl Shorett @cshorett]

@pushtheneedle Sure, but cap rates (via interest rates) coupled w/ developer distress driving the bus here on "low" sale price. The property is hitting $5.00+ PSF rents.

[Carl Shorett @cshorett]

@typewriteralley Already entitled though, no?

[Carl Shorett @cshorett]

@pushtheneedle That's a whole lot of $4k a month apts 😂