Saturday, August 6, 2011

Brookfield Homes in San Diego Posts Record-Breaking Sales in July

SAN DIEGO, CA --( Brookfield has reported 19 gross sales in San Diego in one month, its strongest sales month since Aug 2009. According to Lora Heramb (top right photo), vice president of sales and marketing for Brookfield Homes, there are several key factors at play.

“Brookfield Homes is assisting buyers with the purchase of a new home by paying closing costs and providing funds to upgrade flooring,” said Heramb. “Buyers who qualify for a VA loan get the added advantage of Brookfield Homes helping them pay off their debt.

“With low interest rates holding, we’re seeing more consumers with the confidence to buy a new home. Most of our buyers tell us they feel that they’re getting a great deal on the most important purchase of their lifetime.”

According to Heramb, one outcome of this recession is the return to the true values of home ownership.

 “Our buyers are no longer caught up in the real estate frenzy, but are focused on the inherent value of a new home,” she said.

“Here’s where they’ll be raising their families and creating a lifetime of memories. It’s gratifying to see so many people finding a Brookfield home that fits their long-term needs at price they can afford.”

In addition to building new homes in San Diego, the company also has significant land holdings in Riverside County. For more information about Brookfield communities, visit

For a complete copy of the ompany’s news release, please contact Scribe Communications, Andie Adams, 858-452-8958

New Era of Real Estate: GHA Communities' Mario Gonzales Redefines How He Does Business, Teams with Doug Balog

PALM DESERT, CA --( The real estate market is on the verge of an upswing in the Coachella Valley, and the new home market is a vital part of that uptick.

According to The Desert Sun, during the first several months of 2011, roughly 4560 homes sold in the Coachella Valley, but only 160 were in new home developments.

Mario Gonzales (top right photo), President of the award-winning GHA Communities, Inc. has set his sights on drastically changing those figures by grabbing a larger percentage of the sales market by building homes that he thinks buyers will find irresistible.

 Combine favorable pricing with luxury amenities, older homes on the market will have some tough competition when faced with GHA’s offering.

GHA, winner of the prestigious Gold Nugget Award is going to test his theory starting with The Grove at The Citrus in La Quinta along with other new home developments on the horizon.

GHA Communities is instrumental in completing several new home projects on behalf of developers and investors such as Espana in North Indio which recently celebrated its grand opening.

Both developments represent Gonzales’ vision for the Coachella Valley: to create viable communities with affordable housing while offering superb quality in craftsmanship and design and exceptional amenities.

Doug Balog (bottom left photo) is Broker Associate with KW Luxury Homes by Keller Williams located on El Paseo in Palm Desert, California.

Mario Gonzales is President and CEO of GHA Communities which is located in Cathedral City, CA. For a complete copy of the company’s news release, please contact

Julia Countryman
Doug Balog, KW Luxury Homes

Lesley Garlock of South Bay Realty Selected to Join Innovative International Real Estate Network

NAPLES, FL --( Barbara's inner circle is the latest innovation by Barbara Corcoran (bottom left photo), founder and former owner of New York City's Corcoran Group.

As the regular real estate contributor on The TODAY Show on NBC, Barbara has become America's real estate expert, welcomed into living rooms across the country where her real estate know-how and disarming style bring viewers a wealth of knowledge delivered in common sense language.

"I'm wild about my new concept and very excited to have Lesley joining us," said Barbara. "She's just the kind of savvy agent I most admire. I'm so proud to have her as a member of our team!"

As a select member of barbara's inner circle, Lesley Garlock (top rioght photo) now has access to an international community of the best agents in the world and the ability to post, promote and cross-market among them.

Lesley can also access Barbara's up-to-the-minute marketing tips for homeowners, and, perhaps most importantly, has Barbara's own personal endorsement. Invitation to join Barbara's network is selective and membership signifies a high level of professionalism, dedication and ability.

Contact: Lesley Garlock, REALTOR, SFR
South Bay Realty 239-594-2226 office 239-289-1351 cell 239-594-2226 fax

Surprise, The Terra Cotta Inn Nude and Topless Sunbathing Resort. Palm Springs is Southern California's Most Popular Resort According to the Los Angeles Times

PALM SPRINGS, CA, August 05, 2011 --( The Los Angeles Times newspaper wrote, from "the Stars of Hollywood," to seeing "picture perfect sunsets" while cruising around town "with the top down," to a romantic rendezvous in Palm Springs...wherever you live..."Southern California has something for everyone."

ABC News reports only 57% of Americans take all of their vacation days each year. One of the reasons given is people think vacations are boring and sadly it is for many couples. Big, impersonal chain hotels are boring. Every time you turn around, there's another hotel employee with their hand out waiting for a tip. Instead of being treated like a guest, you're thought of as a walking ATM.

Wouldn't it be nice to find a resort that treats people like family. Where guests are the nicest, friendliest people. Where regular people are treated special with respect and snobby people don't fit in. Where it's easy to make new friends. Or where you can have some quiet, relaxing time together and remember why you initially fell in love.

Well the Los Angeles Times uncovered the perfect resort in their Readers Choice Awards, The Terra Cotta Inn Topless and Nude Sunbathing Resort.

Their site is

The Times wrote, "Widely regarded as the most mainstream nude sunbathing resort in the U.S., the historic Terra Cotta Inn is a popular clothing optional resort and spa located in the world famous playground of Palm Springs. Especially suitable for couples looking to sunbathe topless or nude for the first time. This is the perfect place to say goodbye to tan lines forever."

Terra Cotta was built by the famous architect, Albert Frey (middle right photo by Julius Shulman)  and is a historic mid-century modern boutique resort. Being a 17 room inn on 1 1/4 acres, it is the perfect size.

Originally built for celebrities, the resort was built with highwalls for privacy. Rooms are large and have all the modern amenities like king sized beds, flat screen TV and DVD player, free Wifi, free in room coffee, refrigerators, microwaves, and more.

The resort has a salt water pool and jacuzzi, free parking, complimentary early check in and late check out, pool side cooling system, free breakfast and afternoon snacks, etc.

 MSNBC picked them as one of the best value resorts out west and trip adviser rating site picked them as one of the best deals of Palm Springs. Repeat guests from all over the US, Canada, England, Australia, and Mexico love vacationing here and always count down the days until they can return.

 Not a nudist? Don't worry. You will feel very happy and safe at Terra Cotta. First timers are always welcomed and quickly become repeat guests which is why they have one of the highest repeat guest rates in the travel industry at just over 80%.

So if you want to try something fun, unique, romantic, and relaxing, then give Terra Cotta Inn a call at 800-786-6938 and as the Los Angeles Times says, "say goodbye to your tan lines forever."

Contact: The Terra Cotta Inn Clothing Optional Resort and Spa; Tom Mulhall

Local Distressed Property Expert Provides Guidance for Homeowners Trying to Avoid Foreclosure

Grand Rapids, MI, Aug. 06, 2011 --( Informative online report details foreclosure alternatives for homeowners facing unaffordable mortgage payments in Grand Rapids, MI area.

Local CDPE-designated agent, Donna Tashjian (top right photo) of Keller Williams Grand Rapids East has released a new report that provides 10 foreclosure solutions that can be used to avoid the costly effects of foreclosure.

The report titled “At the End of Your Rope? 10 solutions for alleviating the stress of an unaffordable mortgage!” provides information for homeowners dealing with the stress of possible foreclosure.

“It’s incredibly stressful for homeowners to take action when they are faced with foreclosure,” Tashjian said. “The reality is that over 6 million Americans missed a mortgage payment in April, so people should understand they are not alone.”

This community resource is available at www.DonnaHelpsHomeowners.INFO. In addition to providing more information about the alternatives to foreclosure, the report explains ten foreclosure alternatives that a homeowner can take advantage of like a loan modification or short sale.

To learn more, visit www.DonnaHelpsHomeowners.INFO

For more information about the CDPE Designation, visit

Contact:  Keller Williams, Donna Tashjian, 616-803-9456

San Francisco Luxury Home Sales Hit Three Year High, Coldwell Banker Residential Brokerage Reports

San Francisco, CA, Aug. 06, 2011 --( Luxury home sales in San Francisco reached their highest level since 2008 during the second quarter of this year as the high-end market continued to bounce back from the recessionary downturn, according to a new market report by Coldwell Banker Residential Brokerage, the region’s leading provider of luxury real estate services.

A total of 86 homes sold for more than $2 million in San Francisco during the April-June quarter, up from just 50 sales in the first quarter of the year and 76 during the second quarter of 2010. The 86 transactions marked the highest level of multi-million-dollar sales in the city since just before the Lehman Brothers collapse and the subsequent crash of the financial markets.

The figures were derived from Multiple Listing Service data of all homes sold in San Francisco for more than $2 million during the second quarter of 2011.

“After a fairly quiet spring, the housing market is heating up this summer, particularly the luxury market here in San Francisco,” said Rick Turley (top right photo), president of Coldwell Banker Residential Brokerage. “The high-end segment normally leads the way for the rest of the market in a housing recovery, so this is encouraging news for the entire market.”

Turley said Coldwell Banker is seeing similar improvement in other luxury markets around the Bay Area, including Silicon Valley, the Peninsula and Marin County. All of those markets have bounced back from their recessionary lows and in some cases are nearing their pre-recession levels in sales.

 Although the high-end markets have done best, Turley noted that many entry-level and mid-level markets around the Bay also showed solid gains last month. Bay Area home sales overall in June rose to their highest level for any month since June 2010, when expiring tax credits gave housing a final boost, according to DataQuick, the La Jolla research firm.

Coldwell Banker Residential Brokerage serves San Francisco with five offices.

For more information, please call 925-275-3085.

For more information please visit or call 925.275.3085. DRE # 00313415.

Coldwell Banker Residential Brokerage, Stephen Maita, 510.739.0620

Glenn Brown Joins RE/MAX Alliance Group

Sarasota, FL, Aug. 06, 2011 --( Glenn T. Brown (top right photo), one of the top Realtors in Sarasota, has joined RE/MAX Alliance Group in the Sarasota office at 2000 Webber Street.

A veteran real estate professional with 20 years of experience, Brown specializes in golf course communities.

Brown holds the Short Sales and Foreclosure Resource (SFR) designation from the National Association of Realtors (NAR), and is a 2010 recipient of the Quality Service Award from his previous broker.

His clients and peers have voted him a Five Star Real Estate Agent for Best in Client Satisfaction for five years in a row.

Joining the Glenn Brown team are husband and wife Richard (middle left photo) and Margaret Ruck (bottom right photo) also Five Star Real Estate Agents for five years in a row and consistent recipients of Customer Service Awards.

 “I knew if I moved to a new office, it would be RE/MAX Alliance Group,” said Brown. “RE/MAX a first-class organization that puts clients and agents ahead of itself, providing state-of-the-art technology, a strong support staff and a hands-on helping approach.”

“We are proud to welcome outstanding, proven professionals like Glenn and his team,” said Peter Crowley, President of RE/MAX Alliance Group. “They are tremendous assets to our customers, our company and our industry.”

RE/MAX Alliance Group
Sheila Brannan Longo
(941) 355-3006

Down Payment Resource Wins 2011 Inman Innovator "Most Innovative New Technology" Award

ATLANTA, GA, Aug.  06, 2011 --( Inman News (Inman) named Down Payment ResourceSM, a proprietary Web tool created by Atlanta-based Workforce Resource, LLC, the winner of the 2011 Inman Innovator "Most Innovative New Technology" award at the Real Estate Connect conference.

Down Payment Resource helps bridge the down payment gap for homebuyers and move real estate transactions forward in a difficult lending environment.

Inman's annual Innovator Awards, created in 1997, honor companies that use technology and innovation to enhance the real estate transaction process and improve the experience for consumers and real estate professionals.

"We are thrilled with this new honor," said Rob Chrane (top right photo), founder and president of Workforce Resource. "We hope the recognition of Down Payment Resource will bring more attention to the importance and need for awareness of assistance funds across the country.”
 DPR was one of eight finalists in the Most Innovative New Technology category including industry leaders Trulia and WSJ. The category’s finalists featured two new iPhone apps, a mobile agent search tool, a home design iPad app, a Web-based interactive floor plan, a broker/agent marketing system, and a quality assurance system.

For more information on all the awards and winners, please visit

Contact:  Workforce Resource, Tracey Shell, 404.317.8922

(877) 816-8050

Local Austin Texas Realtor® Achieves National Recognition

Austin, TX, Aug. 06, 2011 --( Scott A. Stevens (top right photo) with Citywide Realty, Northwest has been awarded the Accredited Buyer’s Representation (ABR®) designation by the Real Estate Buyer’s Agent Council. (REBAC) of the NATIONAL ASSOCIATION OF REALTORS® (NAR).

Realtor®, Scott A. Stevens of Citywide Realty joins more than 30,000 real estate professionals in North America who have earned the ABR designation. All were required to successfully complete a comprehensive course in buyer representation and an elective course focusing on a buyer representation specialty, both in addition to submitting documentation verifying professional experience.

REBAC, founded in 1988, is the world's largest association of real estate professionals focusing specifically on representing the real estate buyer. There are more than 40,000 active members of the organization world-wide. THE NATIONAL ASSOCIATION OF REALTORS®, "The Voice for Real Estate," is the world's largest professional association, representing over 1,000,000 members involved in all aspects of the real estate industry.

You may contact the Real Estate Buyer’s Agent Council by telephone, (800) 648-6224, by e-mail,, or by visiting the REBAC website,

Contact:  Citywide Realty, Scott Stevens, GRI, 512-293-6330

RE/MAX Elite is Moving on Up

MELBOURNE, FL, Aug.  06, 2011 --( RE/MAX Elite, which has been the fastest growing RE/MAX franchise in the County of Brevard, FL over the last several years, has put in place two new initiatives that will further facilitate its continued expansion in the Brevard County real estate market.

Justin Brown (top right photo), Broker/Owner of RE/MAX Elite, recently announced that the firm will relocate from its current office at 38 Suntree Place in Melbourne to a brand new larger space in the Casabella Office Park which is located at 6022 Farcenda Place, Suite 101, Melbourne, FL 32940.

The expansion will make the new 7,500 square foot office home to support staff and around 60 affiliated agents. RE/MAX Elite already has a second Cocoa Beach location which moved and expanded its office just over a year ago.

The brokerage has ranked as the top producing RE/MAX office in Brevard County for 2009, 2010 and 2011. They were recently acknowledged in the RISMedia Power Broker and Real Trends 500 reports, which ranks the top firms in the country. RE/MAX International also recognizes them in the top 2% out of 6,240 offices in their network with sales of over 135 Million in 2010.

The new office will feature two conference rooms with flat-panel televisions, high speed T-1 Internet and Voice over Internet Protocol (VoIP) phone systems, multiple color copiers, direct phone and fax lines for all associates, plus a large 20x30 training room with projector and surround sound system! This training/meeting room will be perfect for home buyer/seller seminars, community classes, and training. The agents will also be able to access all of their computer files remotely, which is ideal if they are working from home or out looking at properties.

“As the real estate business has migrated online, the best offices have added agents and offered them enhanced technology and cutting edge training in everything from marketing their services to the intricacies of dealing with distressed properties,” Brown says. “We fully expect those trends to continue as the real estate market recovers from the slowdown in activity that we’ve seen in the last three years.”

For information on RE/MAX Elite, please visit:

RE/MAX is proud of its Premier Community Citizenship, which has raised over $100 million for deserving organizations like Susan G. Komen for the Cure®, Children’s Miracle Network and The Sentinels of Freedom Foundation.

For more information, contact:Heather Holliday, General Manager,

Axacore Named Top 50 Service Provider by Mortgage Technology Magazine

SAN DIEGO, CA, Aug. 06, 2011 --( Axacore Inc., a privately held provider of integrated Electronic Document Management and fax solutions that are supported by high-performance web servers and browser interfaces, has been named a Top 50 Service Provider for 2011 in the July issue of Mortgage Technology magazine.

“We’re honored to have been recognized as a top service provider for our dynamic electronic document management platform, XDOC,” said Steve DeBlasio (top right photo) National Sales Manager for Axacore. “This award reflects the dedication and commitment to reducing costs and improving service from origination through servicing.”

Axacore was recognized for its integrated and flexible document management and faxing software that provides ways to gain efficiencies that are not possible when relying on paper documents.

Axacore, based in San Diego, is a provider of award winning and powerful electronic document management systems that offer the flexibility of paper at a fraction of the cost.

Find more about Axacore at

Contact: Axacore, Steve DeBlasio, (858) 427-4301,

New Home Sales Soar for LGI Homes with a Record Breaking July

THE WOODLANDS, TX, Aug. 06, 2011 --( LGI Homes is pleased to announce that July was a record breaking month for residential closings.

With a previous closing record of 56 in October of 2010, LGI Homes reached 57 closings on new homes in July 2011, an all-time high for the homebuilder. Currently, LGI Homes is ranked 58th by Builder Magazine among America’s Largest Builders.

While LGI continues to increase sales, the Census Bureau recently reported that new home sales in fact, fell 1% in June. In Houston alone, research firm Metrostudy reported builders closed 23% less homes in the last quarter than from a year earlier, while LGI actually increased closings by 43%.

Since 2009, LGI Homes has increased closings every year and 2011 is looking to be no different.

 Recently, Chief Executive Officer Eric Lipar (top right photo) was reported saying to The Wall Street Journal, “It’s going pretty well for us, but we’re probably the exception.” Many builders would agree that LGI Homes is the exception and Eric says, “Our focus is on our people and our marketing. That is what makes us different.”

LGI spends time with every buyer who walks in the door and will do whatever it takes get them qualified to purchase a new home; this means sometimes spending months with a customer to bump up their credit score or get them used to the idea of owning their own home.

LGI Homes is on the fast track for growth. Along with Houston, Dallas and San Antonio, expanding to Austin and Phoenix will mean LGI will be selling in four of the fifteen healthiest markets according to the March edition of Builder Magazine.

 For information about LGI Homes, please visit

LGI Homes, Alison Feazell, 281 362 8998,

HFF secures $30 million financing for Sheraton Salt Lake City

WASHINGTON, D.C. – HFF announced  that it has secured $30 million in financing for the Sheraton Salt Lake City (top left photo), a 362-room, full-service hotel in downtown Salt Lake City, Utah.  

Working exclusively on behalf of Driftwood Hospitality Management and a global real estate private equity fund, HFF placed the three-year, 4.4 percent fixed-rate loan with C-III Capital Partners, LLC.  Proceeds were used to refinance the property.

The Sheraton Salt Lake City is located at 150 West 500 South close to the Salt Palace Convention Center, the Utah State Capital and Gallivan Center in downtown Salt Lake.  Renovated in 2009, the hotel features an outdoor pool, indoor whirlpool, sauna, massage and body salon, fitness center and complimentary shuttle service to the surrounding area.

The HFF team representing the borrower was led by managing director Mark Remington, director John Bourret (middle right photo) and senior managing director Mona Carlton (lower left photo). 

 “Hotels are difficult to finance, but this property ramped up quickly after its renovations and outperforms its competition thanks to dedicated ownership and strong management, all of which created a desirable lending opportunity,” said Remington.

Driftwood Hospitality Management is a hotel management company that operates and develops hotels in the U.S., the Caribbean, and Latin America.

Mark T. Remington, HFF Managing Director, (202) 533-2500
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500

HFF arranges $16 million refinancing of leased fee interests at Sea Colony Resort Community in Bethany Beach, Delaware


WASHINGTON, D.C. – HFF announced  that it has arranged a $16 million refinancing for the leased fee interests at the Sea Colony Resort Community (top left photo) in Bethany Beach, Delaware.  

Working exclusively on behalf of Carl M. Freeman Associates, HFF placed the 10-yr, five percent fixed-rate loan with United Bank.  Proceeds were used to repay existing financing and for general corporate purposes.

Sea Colony Resort Community has nine high-rise and two low-rise condominium buildings with one-, two- and three-bedroom units situated along one half mile of beachfront, plus hundreds of low-rise condominiums west of US Route 1, all in Bethany Beach. 

Resort amenities include 12 pools, fitness center, private beach access and 34 tennis courts.  Hundreds of long-term ground leases underlying the condos served as collateral for the loan.

The HFF team representing Carl M. Freeman Associates was led by managing director Mark Remington. 

“CMFA took advantage of an improving financing environment to recapitalize this unique and extremely stable asset,” said Remington.

The Carl M. Freeman Companies, established in 1947, is a diverse company focusing on high-quality retail, residential, golf and office projects in the Mid-Atlantic region. The Retail Division includes over 1.5 million square feet of retail and office space throughout Maryland, Delaware and West Virginia.

 For more information about Carl M. Freeman Companies and their diverse interests, visit

Mark T. Remington, HFF Managing Director, (202) 533-2500  
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500                       

NAI Realvest Negotiates Three Long-term Leases Totaling Over 23,000 SF at Kissimmee, FL Shopping Center

ORLANDO, FL – NAI Realvest recently negotiated one renewal and two new long- term lease agreements totaling 23,014 square feet at Kissimmee Shopping Center (lower left photo) on Old Vineland Road in Kissimmee.

 Paul P. Partyka (top right photo), managing partner at NAI Realvest brokered all three transactions representing the landlord, Herndon, Va.-based KVOS, LLC.

 Bealls Outlet Center renewed its lease of 15,686 square feet at 2523 Old Vineland Rd. for five years.  “The significant growth Bealls experienced over the past three years at this location was the deciding factor on its extension of the lease for five more years,” Partyka said

 Kissimmee-based Jerr-a-bel’s Bridal, in an expansion move from the Poinciana area, signed a seven-year lease for 3,197 square feet at 2547 Old Vineland Rd. in the Kissimmee Shopping Center.

And at 2549 Old Vineland Rd. in the same center, the Tabernacula Nuevo Comienco church leased 4,138 square feet for three years.  “Tabernacula headed by Pastor Hector Mundo is expanding its space, relocating from a smaller location to accommodate the growing congregation,” said Partyka.

For more information, please contact:
Paul P. Partyka, Managing Partner, NAI Realvest, 407-875-9989, or
Patrick Mahoney, President, NAI Realvest, 407-875-9989,
Beth Payan or Larry Vershel, Larry Vershel Communications, Inc., 407-644-4142 

Cushman & Wakefield Finds Orlando’s Industrial Vacancy Declines as U.S. Vacancy Falls to Two-Year Low

ORLANDO, FL – Cushman & Wakefield released midyear 2011 statistics for the U.S. industrial market that show the overall vacancy rate for Orlando has declined.  At the same time, the overall vacancy rate for the U.S. has declined to a two-year low.

 Orlando’s overall average vacancy rate declined to 14.0 percent at midyear 2011, down from 14.6 percent at this time last year, and down from 14.5 percent at the end of the first quarter of 2011.

 Meanwhile, the overall vacancy rate for the U.S. declined to 9.7 percent at midyear 2011, down from 10.6 percent at this time last year, and its lowest level since the first quarter of 2009. 

With a 0.5 percentage point decrease from 10.2 percent at the end of the first quarter, it was the biggest quarterly decline in the U.S. industrial vacancy rate since the first quarter of 1997, when the vacancy rate dropped 0.6 percentage points to 7.8 percent.

 The U.S. markets with the highest quarter-over-quarter declines included the San Francisco Peninsula (declined from 8.5 percent to 7.1 percent), Boston (declined from 19.6 percent to 18.7 percent), Northern New Jersey (declined from 10.0 percent to 9.2 percent) and Silicon Valley, Calif. (declined from 12.7 percent to 11.9 percent).

 For a complete copy of the company’s news release and chart showing national vacancy rates, please contact Brook Hines, Tel: 407-541-4401,

RECI Notes Concerns on Fragile CMBS Markets

CHICAGO, IL—The Real Estate Capital Institute’s current Scoreboard shows that as the stock market hit news lows in the first week of this month, bond investors hardly fear the Federal budget discussions and impending downgrades, helping keep mortgage rates low.

Instead, low treasury yields are driven by global financial market concerns and a double-dip recession.  In the past month, treasuries moved down to previous lower levels of the nearly a year ago, while floating rate pricing remains nearly unchanged.

More recent concerns revolve around the fragile CMBS markets as any savings
in lower treasury costs are absorbed by higher swap spreads.  Spreads widened more than 100 basis points as note buyers are nervous about the market recovery and quality of securitized mortgage instruments.  Look for more volatility in this lending sector for the remainder of the year, as more mortgage bonds are issued based on stabilized pricing.

 During the past year, income-property sales volume has increased by at least 25%, as investors step back into the buying arena.  Institutional demand for trophy assets (mostly from REITS) in major markets skews pricing dynamics even as market conditions improve. 

Such investors will even consider paying above replacement cost in select "fortress" markets as extremely high prices drive new construction.  Greater profits await investors willing to consider non-downtown areas.  Capitalization rates dive below 5% for CBD assets and are about 200 to 300 basis points wider in outlying areas.  In search of more yield, private buyers now reign in secondary markets.

Multifamily rental increases go unabated with growth rates of 7% or more in
select supply-constrained markets.  Population demographics with a larger
younger workforce, rising rental rates, falling vacancies, limited supply and low mortgage costs are the ideal conditions for continued profitability in this property sector - especially in stronger employment markets.

 However, nothing lasts forever.Investors should take note of improving home ownership conditions, supply threats and other forces on the horizon.  Low cost mortgage debt is fueling new apartment construction and de-conversion of existing condominium inventory. 

Furthermore, unsold home inventory is about three times the normal levels, creating an extremely attractive ownership scenario not seen in years.  Many housing markets are at rock-bottom prices and home ownership is now less costly than renting in numerous cities.  Lastly, banks are starting to loosen consumer credit and mortgage pricing based on historically low interest rates, adding even more reasons to consider ownership vs. renting.

The Real Estate Capital Institute's Director, Jeanne Peck (top right photo), professes that "We're clearly at, or near, the bottom of the housing market and at the top of the rental market."  She adds, "What goes up must come down, but the
prospects are still very strong for owning core apartment assets."

 The Real Estate Capital Institute(r) is a volunteer-based research organization that tracks realty rates data for debt and equity yields.  The Institute posts daily and historical benchmark rates including treasuries, bank prime and LIBOR.  

 Jeanne Peck, Research Director
The   Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624