News and Releases
September 21, 2009
Apartment Investing: Where are we in the Cycle?
Since our last market update, we have all watched the wheels come off the bus of our economy. Fortunately, it appears the doomsday scenarios of an endless economic freefall and a repeat of the great depression may have been avoided. There has been a substantial reduction in value of nearly every asset class – including real estate. We anticipate that it will likely take considerably longer for the economy to heal itself than it did to unravel, though not without creating significant investment opportunities along the way. It is the intent of this letter to focus on when attractive commercial real estate opportunities – and specifically apartment investment opportunities will emerge. In short, we believe an extraordinary buying opportunity is at hand, brought on by a substantial decline in property revenues and a severe reduction of capital flowing into the commercial real estate market.