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Posted 17 Aug 11 By: No comments yet

Great Investment: Albuquerque Multifamily Real Estate

Looking for a great investment? Looking for a great investment in real estate? Well, according to Erik Olson, senior advisor and multifamily specialist, market indicators are showing that the multifamily sector is leading the recovery in commercial real estate. In addition to working with a couple of investors who are seeking properties with 75+ units, Erik is seeing resurgence in local investor interest in properties with between 4 and 25 units.

Erik identifies several factors that are driving investors to consider investing in smaller multifamily properties. Occupancy rates in the Albuquerque MSA are averaging 97%. The decrease in vacancy rates is leading to increasing rental rates. With rents steadily rising, the Albuquerque multifamily market becomes even more attractive to investors. The Albuquerque market, according to Erik, is primed for some private sector multifamily development but with very few entitled multifamily land sites left for potential construction, demand for existing multifamily properties will continue to be strong.

In addition, financing for multifamily properties is also becoming more available. “New Mexico’s Credit unions have provided a welcome breath of fresh air with multifamily and commercial financing. At least two of our largest credit unions have started a big push to lend in the commercial real estate market and have been extremely aggressive in their attempt to expand their lending portfolio. We are seeing 70/30 LTV’s and 4.75% fixed for 5-year loans for multifamily and commercial assets,” said Erik. “High occupancy rates, increasing rental rates, and lack of developable multifamily tracks will continue to drive demand for our local multifamily properties. I see a very bright future with this type of investment product.”

Wednesday, August 17, 2011
NAI Maestas & Ward | Phn 505-878-0001


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