Results for ‘Income Property Benchmarks’ category

Why developers prefer to build luxury apartments

Here’s a question that’s been popping up all over the place: Why do developers only build apartments for the rich? The answer, as with most things in our business, is in the math. Imagine you can buy enough land to build 10 units for $1MM, or $100,000 per unit. Let’s say you have two options:

Whoa! Got my hands on someone else’s PPM…

Just got my hands on the marketing materials for a deal being syndicated by one of my (larger, more established) competitors. Was obviously thrilled to take a look at the forecast economics and how they are structuring deals. The structure is fine. They’re actually not really being compensated sufficiently for the work they’re doing on

How leasing impacts acquisitions

“Hey Jacob. What did we get for the last 2/1 we rented at X?” I think I ask that question of Jacob, who runs our management business, 4-5 times per week. Why? Because we’re constantly recycling the market information we glean from leasing¬†back into our acquisitions underwriting. The go/no go decision on each deal is

Are rents sustainable?

One of my agents was in my office yesterday wondering whether current rents are sustainable. She happens to be looking for a new apartment and can’t believe 1/1s are going for $1350 in City Terrace. In my opinion, rents are very sustainable and, if anything, likely to increase. Why? During the Great Recession, tons and

807 N Madison is leased up

We just finished leasing up the front structure at 807 N Madison, our most recently completed renovation project. Leasing the 10 units took us something like 31 days. We began construction in mid September of 2014, so the entire process took approx. 300 days (a little longer than we would like, due to some unanticipated

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