I have a Multifamily Buyer, are you ready to sell?

I’ve to talked to property owners, brokers, title companies…but nobody seems to know of any properties for sale that fully meet the needs of one of my clients.  He has no 1031 or 1033 Exchange deadlines to worry about…but he does have cash sufficient to purchase 60 to 80 quality units in the Portland area.  Wilsonville doesn’t hit his sweet spot…nor does Gresham or much East of I-205.  Vancouver is possible…West and Southwest PDX would be winners. 

He’s willing to pay a fair price for quality. 

He takes real pride in ownership:  fixer-uppers are not his thing.   This is a knowledgeable investor who puts little stock into overly optimistic proformas.  The challenge for me is to deliver value to him he can’t find elsewhere by himself.  Off-market deals, pocket listings are more likely to get consideration than something on Loop-Net or (more…)

Things are looking up!

 Associated Estates is a self administered, self managed Real Estate Investment Trust that owns 13,192 multifamily units in 52 communities in 9 states.  Their CEO, Jefferey Friedman, was interviewed by Keat Foong, the Executive Editor of Multi Housing News. 

New Renters Will Outstrip the Supply of Apartments

The number of new renters will exceed the supply of apartments by as much as two times, according to the president and CEO of Associated Estates Realty Corp. Jeffrey Friedman.

In an interview with MHN, Friedman argued that demographic patterns in this and next decade dictate that there will be strong demand for apartments that will outstrip supply. 

Friedman explained that the homeownership rate is about 65 percent currently, and that the total number of households in the US is about 120 million. “If 35 percent of the population rents, we are talking about 40 million households that are renters,” he said.

According to the census bureau, there will be 15 million new households over the next 10 years, translating to about 1.5 million new households per year. If only 30 percent of these households rent, says Friedman, this will mean there will be 450,000 new rental households per year in the next 10 years. 

However, apartment starts have been hovering at around only 200,000 units from the supply standpoint. “We know there is no overbuilding,” says Friedman. If this pattern holds, “In fact, there will be half as many new apartments built as new renters coming into the market,” he says. (more…)

Thinking Green Saves $

Even though Apartment Managers have plenty on their plates, adding environmental awareness is good business. Kim Duty, Vice President of Communications for Multifamily Housing Report has a green tip for us:

The U.S. Environmental Protection Agency has launched a multifamily version of its ENERGY STAR Portfolio Manager. The online energy performance tracking tool allows building owners and operators to measure and manage their buildings’ energy consumption.

A comparable tool has existed for the office sector for more than a decade, and the National Multi Housing Council has been urging EPA to release a multifamily-specific version for years. The tool will allow apartment owners to assess their portfolios’ energy performance, identify under-performing buildings, set investment priorities to make targeted energy efficiency improvements and earn recognition for achievements.

Using Portfolio Manager, apartment firms can enter building square footage and whole-community energy and water data, as well as optional building attributes, to benchmark performance.

To learn more about the ENERGY STAR Portfolio Manager, visit NMHC’s Green Practices web site at www.nmhc.org/goto/5147.   To learn more about National Multi Housing Council go to www.NMHC.org.  They have a number of free industry related resources.  And remember…green’s not just good for the environment…it’s good business.

If you’re ready to upgrade your investment  performance, contact Rick M. Bean at: 503.577.1034 or:  rick@rosecitycre.com.