Our recovery is proceeding slowly but surely. At a time when real unemployment levels exceed those during the Great Depression and investors cannot afford to jump headlong into opportunities, the financing community has a positive outlook for apartment buildings. The article's survey yielded that "more than six out of 10 lenders (65%) say apartments offer the best investment opportunities." We cannot agree more. In Los Angeles especially, more and more people are looking to rent, filling the vacancies in multifamily housing. Additionally, landlords have come to realize the need to lower their asking rents to more closely reflect affordable effective rents, the primary appealing factor to the tenants in this economy. Investors in this sector also have financing support from Fannie and Freddie; in fact, according to CoStar.com, Freddie Mac just announced that it will be "partnering with experienced multifamily players to help bridge the capital gap for borrowers who need to finance or refinance overleveraged multifamily properties whose value has declined." Prospects are clearly looking up for the multifamily sector.
Sources:
2010 Borrower Trends: All Is Quiet on The Lending Front
Real Money: Freddie Mac To Accept Mezz Financing on Multifamily Deals
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