Multi-Housing News - August 2009 - (Page 6)

executive insight It’s Fine to Acquire Today Opportunities might not be better in 2010 says JLL’s David R. Hendrickson With a 2008 global revenue of $2.7 billion, Jones Lang LaSalle (JLL) serves clients in 60 countries worldwide. The company’s multifamily group provides comprehensive investment advisor and real estate investment banking services. David R. Hendrickson, managing director at JLL, updates Keat Foong, executive editor at MHN, on the apartment acquisition and financing markets and explains why opportunities may not necessarily be better in 2010. To what extent is the capital shortage an impediment to multifamily investment sales deals today? Although multifamily debt is difficult to obtain today compared to the recent past, underwriting is not that different from the 1990s. Lenders are requiring real equity and realistic debt service coverage on in-place income that looks similar to the late-90s. If a buyer can find a suitable property at current cap rates, the yield over their cost of debt is very attractive and relative investment returns look good. If I were buying a property today, I would recommend locking in the interest rate for up to 10 years, enough to get past any near- to mid-term increase in interest rates. Will cap rates continue to rise? Although I believe capitalization rates will continue to increase and apartment prices Q&A Elevating property management to a new level of intensity Kaplan Management Company is now accepting fee management assignments 6363 Woodway Dr, Suite 300 Houston, TX 77057 (713) 977-5699 Contact Michael Kaplan or Geoff Simpson at Kaplan@KapCorp.com over 31 years of property management experience

Table of Contents for the Digital Edition of Multi-Housing News - August 2009

Multi-Housing News - August 2009
Contents
From the Editor
Executive Insight: David Hendrickson, JLL
Market Pulse
Operations
Finance: Green Lenders
Property Management: Mentoring
Development & Design: Green
Profile: AMLI
Market Report: Florida
Kitchen & Bath: Saving Water
Products: Paints & Finishes
Technology: Resident Screening
Perspective: Leasing Practices

Multi-Housing News - August 2009