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Buying Opportunities Could Arise Amid Turmoil

Sales continue to stall in the apartment sector. Yet as more owners find themselves in distress, they will be forced to put their assets on the market at prices that are finally favorable to buyers.

By Sule Aygoren Carranza | Updated on October 13, 2008

[IMAGE(1)]NEW YORK CITY-The tidal wave of turmoil that has washed over Wall Street seems to have spilled over to the property markets. For the apartment market, sales totals were on track to grow–that is, until the federal takeover of the GSEs and crisis among the banking institutions came into play. Property trades, for now, appear to have stalled.

There were $4.5 billion worth of multifamily trades at the beginning of September, with another $6.5 billion in contract. That would have brought the quarterly total past $9.3 billion. But once news of the Fed’s conservatorship of Fannie Mae and Freddie Mac, along with the Wall Street crisis, came out, buyers and sellers delayed, re-traded or called off deals. “With the events of the past few weeks, all bets are off,” says Dan Fasulo, RCA’s managing director of research. In the past decade, he adds, “I’ve never seen such uncertainty in the market and such a lack of investor confidence.”

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