According to MBG founders, Harold Teasdale and Tom Cooper, multi-family investments are better positioned than most real estate sectors in 2009.

 

TC:  There’s still buyer optimism as the multi-family sector is driving the real estate market.  Demand exists for nice, well-located properties priced right.  (Pricing has been affected by low-cost bank-owned assets.)  But it’s a lot harder to sell and there are fewer qualified buyers.  Financing is challenging in this economy—with tighter underwriting standards and fewer lenders.  Fannie Mae and Freddie Mac, as well as local banks, are actively lending, but requiring rigorous due diligence.

 

HT: The current economy has absolutely had an impact on the apartment sector.  Longer-term trends are unclear with many unknowns –employment, housing, costs of goods and services to name a few.  We can speculate that workforce housing will continue to be in demand and that Class “C” apartments will fare better than Class “A” and “B” as they rent at lower rates.  Rehabs also appear attractive for lenders and operators.  Value-added investment opportunities are typically well-located “B” and “C” properties that are 20 to 40 years old and need updating.

Jeff Patterson, who recently joined MBG, brings nearly 30 years of commercial real estate experience to the company’s core multifamily business.  This association gives the company the opportunity to diversify its operations and broaden its range of client services.  Jeff brings an extensive and varied commercial background in office, retail, and industrial land uses.  Prior to joining MBG, he was Director of Corporate Services at the Minneapolis Office of Colliers International.    Please check out our “Sales Agent” link and read Jeff’s bio.