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MLB’s Alex Rodriguez Grows Real Estate Empire, Shares Insights
Alex Rodriguez, better known as A-Rod and most famous for his astounding 22-season MLB career, is growing his real estate empire, and just like when he played in the MLB, he is still hitting home runs, now just in the real estate field. As CEO of A-Rod Corp., a fully integrated real estate investment firm, his companies manage more than 13,000 apartment units across 10 states.
In 2003, he began investing in real estate with the purchase of his first duplex. This year, he spoke at the National Multifamily Housing Conference (NMHC) in Orlando, and offered some insight into his slow and steady race to achieve growing returns.
- Multifamily Workforce is Stable: There’s a lot of opportunity still to be found in lower and middle class multifamily housing that federal housing cannot supply. Rather than focus on already built luxury properties, A-Rod suggests a “fight for quality” approach, by which renovation and repositioning less attractive offerings is key.
- Sub-Markets for Long-Term Value: As retail focuses on e-commerce, quick shipping, and “last mile” customers, he believes that industrial warehouse space will be most sought after near metropolitan and residential centers. Again, he advises not to overlook underserved areas where low and middle class populations are dense.
- Interest Rates are Rising: While this is a better-known fact given the new tax reform, Fed chair, and housing finance reform, A-Rod warns that money is cheap for the time being, but as such, everything will be uncertain for the remainder of the year.
In terms of what’s next, A-Rod says they are stacking up capital for a correction in 2018.
For comments, questions or concerns, please contact Daniella Soloway
