Multifamily investments are leading the way!

In recent articles I have detailed about how equity players, particularly the big REITs are returning.  The Bid/Asked Gap is closing.  The final piece of the puzzle is the availability of affordable financing.  Please see the attached article about capital markets.

A friend of mine asked me recently if there was ever going to be a good time to invest.  I told him that there was no need to get in now…there will be another great time to buy in a few decades.  I’d call 503.577.1034 now!

from:  National Real Estate Investor

Real estate capital markets continue to improve. As investor sentiment rebounds, there is a large amount of equity capital chasing a relatively constrained supply of for-sale core assets. This increased liquidity has helped to boost sale prices for core assets in primary markets by more than 10% over the past few months. Read the rest of this entry »

Try this on for size:  Pay cash for a distressed asset for a dimes on the dollar.  Remedy vacancy challenges and stabilize occupancy over 90% for six months.  Place a 70% LTV HUD loan on the property and you’ll be able to pull out virtually all of your original equity.  It will still cash flow. What’s the IRR calc when you’ve got $0 cash left in?  Infinite.  Call 503.577.1034 to discuss this further!

From:  CCIM Magazine 

Government-sponsored enterprises Fannie Mae and Freddie Mac have been a lifeline for multifamily investors, providing liquidity that is sadly missing outside of the apartment realm. “That has softened the amount of value decreases in the sector,” says Dan Fasulo, managing director at research firm Real Capital Analytics. “For prime multifamily, we’re not seeing the type of 40 percent to 60 percent declines in value that we are seeing in the office, retail, and hotel sectors.”

CCIMs say the U.S. Department of Housing and Urban Development’s loan programs may soon overshadow Fannie and Freddie as the darlings of multifamily borrowers. Those programs, insured by the Federal Housing Administration, include 223(f) loans, which can be used to refinance assets, and 221(d)(4) loans for new construction. Read the rest of this entry »

Yet another sign the economy is recovering

Even though this investment news doesn’t directly impact Portland multifamily real estate I’ve included it because it speaks to the general improvement beginning in the overall economy.  I’ve personally seen a huge surge in interest in Vancouver apartments in the last month.  

 From: Retail Traffic Apr 13, 2010 10:59 AM  

Bed, Bath & Beyond’s announcement last weekthat it plans to open 60 new stores in fiscal 2010 highlighted a change in attitude that’s slowly taking place among national retail chains. While most national retailers spent 2009 trying not to drown, a brighter outlook for U.S. economy and better pricing on available space has led to an increase in expansion announcements in 2010.   

Meanwhile, children’s apparel seller Gymboree has doubled the number of stores planned for its new off-shoot Crazy 8 up to 100 from previously announced 50. And Urban Outfitters Inc. decided to launch a new concept next year that will focus on the always popular bridal market.  This year, leasing activity might rise 5 percent year-over-year, according to some experts. But the growth will be concentrated among a few key sectors, including discount stores, furniture sellers and fast-food operators.  Read the rest of this entry »