Improving Fundamentals Bringing Multifamily Investment Market Back to Life
National Real Estate Investor reports: In a recent article in the National Real Estate Investor, writer Matt Hudgins reviewed the current dynamics of the multifamily property sector. According to Real Capital Analytics (RCA), the largest US multifamily property sale in September was for the 1,520-unit Resort at Pembroke Pines. Hudgins’ article quotes the property’s buyer as citing his impetus to purchase the property was due to, “the lack of apartment construction in the [Broward County] area and improving fundamentals.” Using that as an example, Hudgkins details how lack of supply and greatly improving fundamentals in rent and occupancy are driving rising multifamily property sales. According to the Moody’s/REAL Commercial Property Price Index, apartment prices reached bottom last year and have been climbing since the fourth quarter of 2009.
Despite rising off its lowest level, multifamily pricing is increasingly lagging behind investor demand. This will not last for long, however. As competition heats up for the highest-quality cash-generating properties, more and more investors are “seeking a stake in the market while asset values still have room to appreciate,” according to Dan Fasulo, managing director of RCA. With historically low mortgage rates and the recovery in fundamentals, along with a lack of new supply coming to market, Mr Fasulo sees apartment sales and pricing to continue improving into 2011.
To read the complete article, including additional reasons why multifamily sales may continue their ascent in the near-term future, please the National Real Estate Investor’s site.
View the full article on National Real Estate Investor: Improving Fundamentals Bringing Multifamily Investment Market Back to Life
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Posted by: Nina Turner