“It’ll be heaven in 2011” was one prediction made at September’s Multi-Housing World conference. Demographic shifts will boost the rental market in a couple of years, experts predicted. On the investment side, now is the time to buy, although steer clear of suburban luxury housing and condo development. Student and workforce housing are hot areas, particularly in urban areas, said Ron Brock, president and CEO of Pierce-Eislen. B and C properties in A markets are another good buy, said Keith Rosenthal, president of Phoenix Realty Group, who suggested purchasing at a discount to replace the cost of over-leveraging. But lenders are looking into investors’ net worth and questioning the veracity of obtaining projected rents. “You’ve got to have a real substantiated story for value-adds,” says David Carlson, managing partner at Redwood Capital Partners.
Source: Commercial Investment Real Estate Magazine
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