APARTMENT SURGE

The apartment market is hot, but not overheating just yet, said professionals at REIA's  monthly breakfast on Thursday. Trilogy Real Estate Group's Jeffrey Katz (here with HFF's Matt Schoenfeldt and Levenfeld Pearlstein's Tom Jaros  showing their support for diagonally striped ties) says he's seeing a lot of competition on the coasts that wasn't there two years ago. In 2009, he bid on a Portland, Ore.  asset for $67k a door. When it didn't sell that year, he bid on it again recently at $87k a unit, but lost out to a higher bidder.Matt  says Fannie Mae and Freddie Mac aren't the only source of capital anymore as life companies and CMBS are back investing in multifamily in a big way.
AMLI Residential's Greg Mutz  says there's more than $1B in new multifamily development in the pipeline right now, but that's just a small percentage of what it will take to accommodate the growth in renters. There's no new stock in single family and people have to live somewhere, he says. The spaces he's building are getting smaller, too. The average new unit is about 840 SF, and rents are still growing by  5% to 6% a year.

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