Good piece in National Mortgage News about the volume of lending that Fannie is providing to buyers of smaller multifamily properties. We have certainly taken advantage of this program, and it is good to see that it is growing and that it is a "critical part" of their work! The availability of financing at rates that are now within 20 basis points of the large balance loans is a big deal in the small property space - especially since smaller complexes can often be purchased
Great article in National Real Estate Investor today on the big-box sector, and it had some surprises in it: the investor appetite for NNN big-box stores is actually increasing, despite competition from the web. Definitely need to be choosy - investors are staying away from the "stale" big-box retailers who may be out of business or scaling back in the face of competition from the likes of Amazon - but the surge in store count of the Walmart Neighborhood Markets, as well as
Much to absorb here in this recent article from Costar! The long-and-short of it is that retail rental rates are seen rising - in particular in secondary and tertiary markets, and in particular the Carolinas are looking very well positioned. Almost all of the increased construction activity is focused on the big City - metro areas such as New York and Miami, and that means that the overhang of current inventory is steadily - and rapidly - declining in our neck of the woods.
Great piece in the Wall Street Journal on consumer spending picking up - this should be welcome news to retailers and multi family property owners. From the article: U.S. consumers showed signs of strength in January, taking advantage of low oil prices to increase their spending and offering a welcome counterpoint to the gloom that has gripped investors and roiled markets since the start of the year. Sales at retail stores and restaurants rose 0.2% in January from the prior m
We came across this article which appeared this past summer in “Multi Family Executive”. It does a nice job of making the argument as to why Class B/C apartments are turning out to be better investments than the Class A properties which are getting all the headlines! This has been a theme that resonates with Prudent Growth Partners. We believe that B/C properties – which tend to be smaller and which tend to trade at a higher cap-rate (typically 7.25 to 7.75) represent a sup
Great article highlighting the great diversification available to investors who have REITs in their portfolio. However, the real estate LLCs that are structured by Prudent Growth Partners provide something even more attractive – cash-on-cash distributions that are, on average, 2 or even 3 times higher than a typical REIT. This is mainly due to the fact that we only buy true “value properties” with strong cash flows. It is also due to the “illiquidity premium” associated with