Apartment investors that need more information about commercial real estate loans can contact Winston Rowe & Associates at 248-246-2243 or visit them online at http://www.winstonrowe.com
The quick recovery of apartment fundamentals, interest in purchasing core assets has driven up the pricing of class-A apartments in primary markets to near pre-crisis levels in both cap rates and price per unit. As of the second quarter of 2011, the average transaction cap rate, including all asset classes, declined by about 20 basis points to 6.6 percent, while average cap rates for class-A apartments in primary markets declined to 4.7 percent.
Additionally the pent-up demand, the shift in preference from homeownership to rental is generating additional demand for apartment units. The homeownership rate has fallen from 69.0 percent in the third quarter of 2006 to 66.1 percent in the third quarter of 2011, which translates to approximately 2.7 million potential new household renters. Combined with the increased rate of foreclosures has also impacted the rate of homeownership and we expect it will continue to do so in the near-term.
Even with home affordability currently reaching an all-time high, many potential buyers are choosing to rent for now because of declining U.S. home values as well as the difficulty in qualifying for a mortgage, which makes it harder to buy homes. Winston Rowe & Associates expects housing prices will likely remain weak for the rest of the decade.
Winston Rowe & Associates has an excellent knowledge based investor resource for apartment building valuation and market analysis located at:
http://www.winstonrowe.com/
Winston Rowe & Associates has a core focus on building long-term relationships, delivering exceptional and individualized customer service, and positioning loan products that best achieve their client’s goals. Their preemptive problem-solving approach is perfect for clients with credit and time sensitive issues.
Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243
processing@winstonrowe.com
Winston Rowe & Associates has no upfront free private commercial loans in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming
