Midwest Real Estate News August 2011 : Page 1
midwest R E A L AUGUST 2011 Louisville ready for recovery Page 8 E S T A T E N E W S ® THE DAKOTAS | ILLINOIS | INDIANA | IOWA | KANSAS | KENTUCKY | MICHIGAN | MINNESOTA | MISSOURI | NEBRASKA | OHIO | TENNESSEE | WISCONSIN WWW.REJOURNALS.COM VOLUME 27, ISSUE 5 D I R E C T O R I E S O N PA G E 3 2 : R E A L E S TAT E L A W | E C O N O M I C D E V E LO P M E N T | B U S I N E S S & I N D U S T R I A L PA R K S Multi-family market flourishes Expect no change as long as single-family market woes continue. "This remains such a stable market," Filter said. "The demographics and demand are very good in the multi-family sector right now. I haven't seen anything in the economy to indicate that interest rates are going up any-time soon. I see strong prospects for the multi-family sector for some time." The financing key Like all commercial real estate sectors, the multi-family market saw its funding sources dry up as the Great Recession tightened its hold on the country. But the real estate pros working in the multi-family financing arena today say that this is changing. Capital is returning to the market. Aaron Abelson, senior vice president for the Mid-west region of Alliant Capital, said that developers in-terested in building multi-family projects in strong urban in-fill locations are finding it easier to find fi-nancing today. MULTI-FAMILY (continued on page 16) by Dan Rafter, Editor evin Filter doesn't care whether you're talking about affordable rental housing, market-rate multi-family housing or senior living facilities. Every sec-tor in the multi-family category is strong today. And this isn't the first year that this has been the case, said Filter, president of financing company Oak Grove Capital in St. Paul, Minn. The Midwest's multi-fam-ily market has been the strongest of the main commer-cial real estate sectors ever since the economy first started slumping back in late 2007. "Like every other market in 2008, the multi-family market was a bit shaky in 2008. But it certainly has re-covered," Filter said. "Vacancies have continued to fall. The market for all sectors of the multi-family business has come back. Class A, B and C, they've all reduced vacancies and started to see increases in rents as a re-K sult of increased demand." Filter is far from alone in this assessment. The multi-family market remains that most consistent of all com-mercial real estate sectors. While industrial, office and retail continue to struggle in most Midwest markets, apartments and senior-living facilities are filling up. Landlords are increasing rents. And, in small doses, the Midwest is even seeing new multi-family projects sprout up in select markets. Most important of all, financing is becoming an eas-ier get for the developers of multi-family projects, whether they're building new apartment complexes or renovating older ones. It all adds up to plenty of positive news for those real estate professionals who make their livings man-aging, building or providing financing to multi-family buildings.