WHY APARTMENTS?
INEFFICIENT MARKET
Numerous and different market areas
Lots of mom/pop owners, absentee owners
Lots of non-institutional property managers
Performance numbers frequently misstate operations
DEMAND FUNDAMENTALS ARE POSITIVE
Increasing housing affordability but strict lender underwriting fueling apartment
Job growth is starting to pick up increasing demand
Strong pent up demand due to multigenerational households beginning to un-compress
SUPPLY FUNDAMENTALS ARE ALSO POSITIVE
Apartment prices well below replacement costs
Completions are very low in many areas,
generating tightening markets and rising rents
RENTS FIRMING AND POSTURED TO TAKING OFF
Occupancy is in the high 90% range
Heading into 6%+ rent increases