North Bay Multi-Family Newsletter

Have we seen the bottom?

Here's what we know:

1.)   Nationally, apartment vacancy rates have dropped from 8.2% to 7.2%, from the fourth quarter of 2009 to the first quarter of 2010, on investment-grade properties,

2.)   In the first quarter of 2010, national average apartment rents on large apartment buildings are on the rise, after 5 consecutive quarters of declines,

3.)   The investment pace of national and international REITS(Real Estate Investment Trusts) has picked up vigorously in the past two quarters.

I’m often asked by property owners why they would want to sell at the bottom of the market. The answer is simple: A.) Unless you like to pay taxes, the exchange laws require that you trade into something “of equal or greater value.” Simply put, wouldn’t you rather sell your million dollar property at the bottom of the market and trade into two, million dollar properties at the bottom of the market?? B.) In parts of Sonoma County GRM’s have dropped by over 31% over the last three years. That means that a building performing at the same level in the summer of 2007 as it does today, would be selling for 31% less today. In parts of Marin County GRM’s have dropped by as much as 22%. C.) We’ve had five recoveries lasting five years or longer, after five full-fledged recessions, since the second World War. Could it happen again?

Whether saving for retirement, college tuitions, or a better life for those we leave behind, real estate is a tangible asset that has stood the test of time. And, one of the best strategies for success in real estate is optimizing being a buyer in a buyer’s market.

Update: A large apartment building closed recently in southeast Santa Rosa for over 10 times the gross rents, and over $150,000 per unit. Call me for the details!

Dave Domantas

Direct: (415) 785-3260

Cell: (415) 806-9777

Recent News Articles

Unemployment Rates across the North Bay dip in April

Business Journal Staff Report

NORTH BAY — The jobless rate decreased month over month in all North Bay counties in April, though still above 2009 rates for the same period, according to figures released by the Employment Development Department
Read More...

Landlords See Record High Rentention Rates

Multi-Family Executive

In late 2008, as the economy was quickly turning sour, the battle cry throughout the apartment business was to “keep heads in beds” at all costs. Now, a year-and-a-half later, it looks as though the industry was successful in doing just that.
Read More...

Apartment Sales Volume Up; Money More Available

CoStar

The apartment market continues to rebound from the "Great Recession" according to the National Multi Housing Council's (NMHC) latest Quarterly Survey of Apartment Market Conditions.

I’m Dave Domantas, and I’m an apartment property specialist in Marin, Sonoma, and Napa Counties. Call me for a complimentary estimate-of-value on your property. I have helped dozens of property owners substantially better their cash positions and increase their real estate holdings through informed decision-making that empowers my clients to make the best choices for their desired outcomes.