Tag: Apartment building investment

Top 10 Tips for Acquiring Distressed Multifamily Properties

Nice article in MHN Online, good tips and reminders. There are still plenty of properties worth less than the debt, and there are more foreclosures to come. Most of the distressed multifamily properties are B, C and D class properties. These properties can provide great returns with cap rates from 8 percent to 12 percent on existing income, and in most cases have plenty of vacancy for even more upside.

My top two that apply to all properties distressed or otherwise:

Good management: Distressed B, C and D properties require experienced and diligent asset and property management. Your management team should be top notch. Your turnaround plan should be realistic and properly implemented.

Talented leasing staff: Your leasing team should be properly motivated and for lease marketing extremely thorough. You want a well-thought-out, multi-disciplined lease up plan to stabilize properties in this cycle.

See the article here: http://bit.ly/xW6fZp

Hoisington Quarterly Review and Outlook “Recession in 2012”.

Housington Investment Management runs about $4B in fixed income institutional money so they pay very close attention to the economy, government as well as fiscal and monetary policy. In fact Dr. Lacy Hunt, co-author of the report, is one of Mauldin’s most highly regarded economists. Here’s the exec sum (see the whole article at http://bit.ly/wM9DIY):

High Debt Leads to Recession

As the U.S. economy enters 2012, the gross government debt to GDP ratio stands near 100% (Chart 1). Nominal GDP in the fourth quarter was an estimated $15.3 trillion, approximately equal to debt outstanding by the federal government. In an exhaustive historical study of high debt level economies around the world, (National Bureau of Economic Research Working Paper No. 15639 of January 2010, Growth in the Time of Debt), Professors Kenneth Rogoff and Carmen Reinhart [Again with those two!] econometrically demonstrated that when a country’s gross government debt rises above 90% of GDP, “the median growth rates fall by one percent, and Continue reading Hoisington Quarterly Review and Outlook “Recession in 2012”.

DC Multifamily sales surge to $4.7B in 2011, up 1.1B from 2010.

By Daniel J. Sernovitz Staff Reporter – Washington Business Journal

I believe this quote from the article reflects an important trend in multifamily, indeed all residential development, re-development and infill: “People are paying a premium to be within a one-block radius of a Metro station, and properties within walking distance of Metro stations continue to be a strong lure for investors,”…

One thing the article doesn’t cover is where prices are vis-a-vis replacement cost… makes me wonder where they are in their apartment market cycle-

See the whole article here: DC Multifamily Sales Surge in 2011

Record Rent Growth & Q4 Demand in Dallas/Fort Worth Multifamily Markets: Video

Year-over-year rent growth reached a two-decade high in the Dallas/Fort Worth apartment market. And demand in 4th quarter — typically a slow leasing period — was unusually strong.Record Multifamily Rent Growth in DFW

Renters want to be green, Multifamily developers respond.

Composting food waste is an eco-conscious activity typically associated with single-family home neighborhoods rather than apartment complexes. But composting will be easy for residents of the green-centric apartment complex being built in Minneapolis, which will open later this year.See more at http://bit.ly/wJjcGI