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Rental Property Listings Prove Popular Among Investors

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By : John Cutts    99 or more times read
Multifamily properties and apartments under rental property listings became the primary asset choice among commercial real property investors during the start of the second half of 2010. Latest data showed that the apartment markets of major metro areas in the U.S. were the focus of investors' attention for the period July to September.

The multifamily property market benefited from a surge of transactions that involved large sales closed in the late summer. The second half sustained the solid performance of the apartment market which also recorded huge sales during the first six months of the current year. Most of the large transactions were done by real estate investment trusts (REITs), with pension funds, private equity, private individuals, developers and insurance companies also becoming part of the mix.

Sales data from CoStar Group showed that both regular and distressed multifamily structures in major cities around the U.S. posted high numbers. For the second half of the year, the interest from REITs and other investors is showing no sign of slowing down. Plans to invest in apartment spaces continue to pour down, with Southern California, Massachusetts and Maryland being the preferred areas of investment.

One example of the continuing interest in multifamily and rental property listings is UDR Inc.'s announcement that it plans to acquire several apartment communities for an estimated price of $455.1 million. The investment is one of the largest deals that will be completed in 2010. The plan includes the Marina Pointe at Marina del Rey in Los Angeles and the Garrison Square in Boston.

Marine Pointe will cost UDR $157.5 million, while the Garrison will be worth over $600,000 per unit. Analysts consider these buys great assets and have asserted that the purchase demonstrates investors' opinions about the apartment market. They further reveal that such level of activity is currently absent in other commercial property markets, especially among office structures.

Other notable transactions are Grubb and Ellis Apartment REIT's plan to acquire the Oakton multifamily properties of MR Holdings LLC, along with all of Mission Residential Management LLC's assets. The deal is estimated to be worth $182 million. Cornerstone Real Estate Advisers LLC, on the other hand, has sold a multifamily properties comprised of 325 units to Invesco for more than $120 million.

A handful of REITS are reportedly preparing large deals within the apartment and rental property listings market, leading analysts to predict that the total transaction worth for the second half will likely be higher than the year's first half.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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