For Manhattan Apartment Investors: Go Long to Go Big
BusinessWeek reports: According to industry leaders interviewed by Bloomberg’s BusinessWeek publication, the days of investors doubling their initial investment over the course of five years in Manhattan real estate are over. David Levinson, the chairman and CEO of L&L Holding Co that primarily operates in Manhattan developing real estate, stated “ When you’re buying property in Manhattan, you should really be thinking long term – financing its intelligently and planning on holding it as long as possible.” He also added that building new properties may be a good investment in a city with so many dated buildings.
The article in BusinessWeek stated that the long-term strategy particularly applies to apartment investors. In support of the article’s content, BusinessWeek quoted Real Capital Analytics’ data on Manhattan’s multifamily sector. “Trading volume of Manhattan apartment properties totaled $1.63 billion in the third quarter, up 231 percent from the prior year…the average price per unit in Manhattan was $273,833.” Supporting the theory that a long-term investment is best, that average per-unit price was only up by 9 percent from the third quarter of 2009, while cap rates on Manhattan apartment properties are up by 53 basis points from last year.
View the full article on BusinessWeek: For Manhattan Apartment Investors: Go Long to Go Big
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Posted by: Nina Turner