RETURN OF THE BUYER

Can it really be that apartments are once again having to compete with  home buyers? (It can't be! Home buyers are tied up in the basement, there's no way they could've escaped!) According to one apartment mogul, you bet.
 
Perennial Properties Captain  Aaron Goldman told our audience last week during Bisnow's 3rd Annual  Atlanta Multifamily Summit that for the first time in four years, apartment operators are starting to see renters head back to the buy side. It's certainly not in droves, nor at housing bubble levels, but watch the video to hear Aaron tell it.
 
Cortland Partners' Marvin Banks—who purchased eight properties the past two years and will pick up five more in the next month— says banks would much rather fund brand-new apartment developments than rehab existing properties. (Everything you know you learned in kindergarten: New toys are better than your older brother's used ones.) ?The l ending community in this case was just so focused on the risk of renovation that I think they missed the boat,? Marvin told our audience of more than 350 at Cobb Energy Performing Arts Centre. ?There is actually less risk in a renovation deal.?
 
We chatted with Gables Residential?s David Reece (above) and AMLI Residential?s Fred Schreiber  about new projects. Both say their companies are seeking opportunities in metro Atlanta—mainly Intown projects. ?We're working on a couple of deals,? Fred says. ?But we?d love to find another suburban [site].? David says his firm also is ?looking very selectively at sites in town.? He also adds that, despite all the new apartment projects under way, supply is still behind demand. ?If there is any overbuilding, it's a blip,? he says.
 

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