3 Things: Jara Capital's 2022 Annual Letter Release, Kelley-Moore Relocates to North Texas, How Low Mortgage Rates are Limiting Housing Inventory
3 Things: Jara Capital's 2022 Annual Letter Release, Kelley-Moore Relocates to North Texas, How Low Mortgage Rates are Limiting Housing Inventory
“The path from dreams to success does exist. May you have the vision to find it, the courage to get on to it, and the perseverance to follow it.” - Kalpana Chawla
APRIL EDITION
01 Partnering for Success: Jara Capital's 2022 Annual Letter Release
Jara Capital is excited to announce the release of our 2022 annual report, which highlights our mission to build wealth with everyday investors through direct multifamily real estate investment.
In the report, we proudly shared our 2022 accomplishments, which include the acquisition of
Grayson Alpha townhomes, a 4-unit property located in Fort Worth, Texas. Looking forward to
2023 and beyond, our focus remains on growing our portfolio and creating a strong investment
firm for our investors.
As we reflect on our past year’s accomplishments, we are more excited than ever about the
future of Jara Capital. Our annual report serves as a testament to our commitment to our
mission and our vision for building a strong investment firm for years to come. We encourage
our investors to read our annual report and join us in our journey to create wealth through real
estate investment.
02 Painting a Bright Future: Kelley-Moore Relocates to North Texas
Kelley-Moore Paint Co, the renowned paint retailer and manufacturer with an annual revenue of $340 million, has announced its plan to relocate its corporate headquarters from California to
the Dallas-Fort Worth area of North Texas. This strategic move is set to create 30 new high-
paying jobs, each with an average salary of $100,000, and will be supported by economic
development grants from the City of Irving, TX.
Our takeaway:
Kelley-Moore's decision to move its corporate headquarters to North Texas is in line with a
growing trend of companies relocating from coastal states to the region, attracted by the thriving
business ecosystem and favorable economic conditions. According to the Texas relocation
tracker, over 110 companies have relocated their corporate headquarters to Texas since the
beginning of 2020, with a significant number of these companies choosing Dallas-Fort Worth as
their new HQ location.
This relocation is an exciting development for the North Texas business community and
multifamily investors in the region. The creation of new high-paying jobs is likely to fuel housing
demand, particularly in the rental market, as new employees search for housing in the area. As
demand for housing increases, it is expected to drive up rental rates, making multifamily
investments even more attractive for investors. The relocation of Kelley-Moore, along with the
many other companies that have moved their headquarters to North Texas in recent years,
reinforces the region's position as a hub for job growth and economic prosperity, all of which are
favorable conditions for the multifamily real estate market. Ultimately, this news underscores the
region's status as an excellent investment destination for multifamily investors, and the outlook
for the market is promising.
03 Locked In: How Low Mortgage Rates are Limiting Housing Inventory
New home listings are down 25% year on year due to low mortgage rates, causing homeowners
to be reluctant to sell. 85% of homeowners have a mortgage rate below 6%, and with rising
interest rates and tighter loan demands, existing homeowners are holding off on new home
purchases. Redfin's chief economist warns of limited supply being a significant obstacle for
potential buyers, regardless of Fed rate hikes next month.
New listings of homes for sale are down 25% from a year ago, according to the latest report by
Redfin. Homeowners are reluctant to sell their homes, which is a major factor in the decline of
new listings, due to the low mortgage rates they have on their current property. With 85% of
homeowners having a mortgage rate below 6%, rising interest rates and tightening loan
demands are causing existing homeowners to hold off on new home purchases, leading to
fewer and fewer homes for sale. Redfin's chief economist warns that the limited supply of
homes for sale would remain a significant obstacle for potential buyers, even if the Federal
Reserve chooses not to hike rates next month.
Our takeaway:
The low inventory of single-family homes has had a significant impact on the rental housing
market, with rental demand increasing despite high interest rates. Many renters are now
choosing to continue renting due to the low inventory of homes for sale, which has resulted in a
positive demand for rental housing. For multifamily investors, this trend is a positive sign as it
indicates that occupancy rates will likely remain stable and flat even in the midst of economic
uncertainty. With the continued demand for rental housing, multifamily investments offer a
secure investment opportunity for investors looking for long-term appreciation and cash flow.
Additionally, this trend reinforces the importance of investing in the North Texas region, which
has seen significant population growth and economic development in recent years, making it an
attractive market for real estate investment.
Ready to invest?
As you evaluate your 2023 strategic investment plans, Real Estate is and will always be a solid asset class for investment. Jara Capital is well positioned to help anyone looking to invest some capital in the multifamily real estate sector.
Regards,
Caleb & Toyyib
Co-founders & Managing Partners
Jara Capital Partners “Delivering Extra”
