Multifamily Projects

Andrew Hefe, CEO of Crescent Resources has stated that his company is on scheduled to emerge from bankruptcy in early 2010. He has indicated the real estate development trends to be inconsistent but is much more optimistic about apartments. He has indicated that multifamily projects will be a significant opportunity for real estate investment and development in the next several years. His predictions:

35% of the population will be unable to purchase homes and will have to rent

Multifamily housing will be essential to meet the demands of population growth

There is a lack of supply and the demand will exist.

For those of us in the trenches, what do we do with this glimmer of wisdom?

I am a strong advocate of rezoning for value and searching for the "needle in the haystack". Review the zoning maps in your community.
Highlight all of the multifamily, high density, and commercial retail areas.
Analyze the highlighted areas for land still zoned residential within higher use locations.
Most likely it is a left over parcel and not a large parcel. A 3-4 acre site can produce an apartment complex that most multifamily developers will consider.
Undertake a due diligence investigation of the property. If it doesn't make sense, walk away and do not spend any more time on trying to make it work.
If it makes sense, contact the owner - maybe they will want to partner with you to increase the value through rezoning.
If you have found a property that seems to make sense and if you need a second opinion on what to look for, contact me.
For those that follow me on this blog -- no charge for advice! I invest in others.