Posts Tagged ‘Arizona’

Investors excited for federal REO rental conversion

February 10th, 2012

Federal plans to market 200,000 foreclosed homes as rentals are drawing major interest among investors including private equity firms, Bloomberg reports.

More than one firm plans to invest $1 billion or more in the opportunity from now to 2016, according to the news source, as they vie for the chance to be involved in a move that is expected to exercise a significant positive impact on the national housing market.

GTIS Partners indicated it expects to invest largely in the hardest-hit states, such as California, Nevada and Arizona. Investors and property management companies in harder-hit states should expect the largest changes, while those in areas with fewer foreclosures will likely experience less of a difference as these new rental homes become available.

Proponents of this move believe it will stem the tide of dropping home prices and reduce lender losses on foreclosed and distressed properties. Proposals for how to go about converting REO properties to rentals have been under discussion since September, and now officials and investors are preparing to move forward.

Investor opportunity in Phoenix rentals

February 9th, 2012

According to GlobeSt.com, demand for rental housing in Phoenix is expected to level off this year after a moderate increase during 2011, though investment activity is expected to remain strong.

Such an increase in demand would represent a continuation of the trend that marked 2011, in which demand was high enough for rents to increase sharply. Net effective rents rose 12 percent overall since 2009, one expert told the source.

The demand for rental housing is high enough that construction of several new apartment units are planned, indicating there is likely an opportunity for investors to purchase profitable rentals in the area. Rental property services are available for those who wish to own a property without operating it.

According to the source, Phoenix has been the target of significant investment recently because of the market conditions. One aspect of the market that has improved recently is the number of real estate-owned properties in the metro area, which decreased in 2011.

Some investors are reportedly pursuing value-add deals in the area to better appeal to prospective tenants. Colliers International executive Brad Cooke told the source this year would see a shift from REOs to traditional sellers.

Get in on the Ground Floor of a Growing Downtown

April 21st, 2008


Creative Commons License credit: Richard Jones

Downtown revitalization is a phrase that has been on the lips of many cities across the nation. What this term refers to is the investment of government funds into rebuilding the downtown neighborhoods of their cities in order to attract business, residents and tourism. Riverwalks, urban parks, luxury loft-style apartment buildings and reinvigorated arts districts are all symbolic of downtown revitalization. (more…)