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Investing in Multifamily Properties in NYC

Connie Ogburn
 


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A multifamily real estate is a widely held strategic commercial real estate asset class. At the moment, the multifamily residential sector accounts for almost 25% of the New York commercial real estate stock. That makes it the second-largest share of institutional investors’ real estate holdings. Not that long ago, multifamily was strictly considered as a residential asset, but now it is firmly cemented as commercial real estate asset class. In fact, it is recognized as one of the four primary real estate asset classes, along with office, industrial and retail.

In this article, New York City real estate developer Solly Assa will provide a short overview of the multifamily asset class. He will discuss the main demand drivers, point out some particular changes in use and lay out the factors that can help investors make an informed investment decision.

Those who are not able to withstand the volatility of the stock market may find real estate as a perfect alternative. For the time being, investing in multifamily properties is a favorable strategy among investors. Single family and multifamily are two main types of properties in terms of residential real estate investment in NYC. Multifamily is an asset class that technically includes all buildings containing at least two housing units. It is can be divided into Class A, B or C, based on criteria such as age, quality, amenities, rent, and location. According to Assa, in order to analyze the key multifamily demand drivers, we need to consider that households are made up of either owners or renters. Homeownership currently stands at 62.9%, which is one of the lowest levels in the last 25 years. There are around 117.4 million households, but as the population grows, experts expect the number of total households to increase.

Today’s multifamily projects combine residential spaces and retail businesses in a harmonious fashion. Such convenient combinations are especially popular in downtown centers and suburban areas. Many developers customize their projects to the specific needs of the future tenants, hoping to provide them with the best experience possible. These modern developments contain elements of a live-work-play environment. However, before you decide on anything, make sure you pay attention to the following things:

• The location is extremely important for real estate investors, and multifamily properties are no exceptions.

• The number of units on the property, including the number of rooms in each unit. Evaluating the property as a whole is a crucial step.

• Practice due diligence and take everything into consideration to determine the potential income.

• Calculating the cost and considering your credit score.

Over the years, multi-family activity in New York City has significantly increased its limits and caused growth in the ownership sector. More and more developers are deciding to invest in such projects and try to meet the needs of the millions of modern people who seek a more urban, walkable lifestyle. Over the years, Solly Assa has overseen a number of multifamily projects. If you know your numbers and have a thorough strategy, your multifamily investment can easily bring you consistent cash flow month after month. Many seasoned investors have achieved financial freedom through investing in multifamily properties.

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