Core Plus Apartments

Properties on the market during the next 18 months will face a shortage of buyers, so active Core Investors can acquire properties in well located areas, at higher cap rates, that will perform at a high level over the investment period.

"THIS TIME IS RIPE FOR CORE PLUS INVESTORS WITH LIQUIDITY TO ACQUIRE HIGH QUALITY CORE PLUS APARTMENT ASSETS FOR PRICES THAT HAVE NOT BEEN SEEN IN THE PAST 15 YEARS."

Jim Cunningham - Vice President, Property Management

High quality properties right for the picking.

This time is ripe for Core Plus investors with liquidity to acquire high quality Core Plus apartment assets for prices that have not been seen in the past 15 years. This is the result of the existing "perfect storm," where the faltering economy and rising number of job losses has put stress on Core Plus Owners, forcing them to sell their prime assets to gain liquidity. The result is a price reduction off of replacement cost.

These investments can be made with all cash, or there is favorable financing available with agency debt. Targeted unlevered IRR's are 9-10%, and low teens with conservative leverage.

The long-term demographic trends for the rental population from 2012 to 2020 will lead to positive results:

The peak of the echo boomers will be entering the rental market after 2012, and will be attracted to urban cores, transportation corridors and lifestyle areas
This growing rental population and a reduced supply will lead to higher rents
Good management and positive rent growth will generate substantial NOI growth over the hold period