Apartment Investor's Advisor September 2009 EZine

Katherine J. Higgins

The Market Leader in North Bay Apartments

Investment Broker

Bradley Real Estate - Luxury Division

(415) 721-2595 office

(415) 302-7730 cell

(415) 721-2596 fax

851 Irwin Street, Suite 104

San Rafael, CA 94901

www.khiggins.com

Apartment Investor's Advisor

September 2009 EZine

Marin Investment Market Sees Brisk Activity this Fall

Dear Investors,

The Marin investment market, particularly apartments, has been very active the past several months as sellers have become more realistic about pricing. The 2-4 unit category has seen a dramatic increase in open escrows over the past two weeks at all price levels.
Many properties that have been on the market since spring are now pending as a result of reduced pricing.

In the 5 or more unit and commercial categories activity is also increasing with more escrows and closed sales. Gross rent multipliers in central Marin have dropped from high 13's of last year to as low as 10.8 with the most recent sales (see below). In Southern Marin gross rent multipliers continue to be the highest in the county with a recent 8 unit sale in Tiburon closing at 16.9 GRM with a price of $2,300,000. Another 10 unit sale in Mill Valley closed at 14.8GRM on low rents. The final sales price was $2,200,000.

Downtown San Anselmo continues to see the highest prices in central Marin, with GRM's in the 13.7-14.5 range. Currently several prime properties are listed in the down town area (see below) with relatively high multiples, but low rents that could be raised upon sale.

Even though the news media has been reporting lots of alarming stories about commercial real estate, Marin properties are maintaining well, with only a handful of properties selling at deep discounts. Financing for apartments is continuing to be offered by local lenders such as First Federal of San Rafael and Luther Burbank at a very competitive rate of 6.25% for a 5/1 ARM. Downpayments required depends on the income stream but most lenders will want 30% down unless the property is steeply discounted.

Rents have flattened out since the first of the year and have stabilized. Potential buyers need not worry about rents declining further as the economy seems to have halted it's steep decline of last year.

I see a very active investment market for the remainder of 2009. And 2010 looks extremely promising as prices have come down to reasonable levels for the serious real estate investor.

Happy hunting!

Katherine J. Higgins
Investment Broker
Mobile: (415) 302-7730

Below are are recent listings and sales through this office. Please call me at 415-302-7730 if you would like more information on any of these properties or would like to schedule an appointment to view a property.

You can also visit my website at www.khiggins.com.