CENTURY CITY, CA—“A wealth of private capital is encouraging investors across the country to place their money in multifamily properties, which provide superior returns over storing their capital in a bank.” So says Janet Neman, senior managing director of Charles Dunn Co.
In addition, Neman tells GlobeSt.com, low interest rates have created a “lucrative seller's market.”
When asked how the multifamily market was currently fairing on a national level, Neman says that “a national trend toward urbanization has created extremely tight markets in the cities, especially in areas where density and improved local amenities have dramatically raised asking rents.”
She adds that “There is a high demand for metropolitan multifamily properties that is outpacing the current supply.”
Neman, who says that she has witnessed several cycles over her three decade CRE career, says the past few years have been marked by the most rapid change.
“Fifteen years ago, the metropolitan markets were gaining speed, after which the housing bubble burst,” she says. “The recovery has brought a market unprecedented in its exponential value hikes.”
For example, she points to a multifamily portfolio that she sold in New York a few years ago and since then the price has quadrupled. In Los Angeles, where the bulk of her practice is based, the market has gone from fairly pricey to extremely pricey, she adds, and that goes for all product types in the multifamily market. “I can imagine Los Angeles being another Manhattan in just a few years.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
