Housing “Recovery” Showing New Cracks, This One Will Expand!
Posted By thestatedtruth.com on October 2, 2013
Wise Dog Sources:
“We know from experience that if Carlyle Group is a seller (of anything), then you’ll want to be a seller also. Yes, they are that good.” “They buy wholesale, and sell retail or above. There’s no meat left on the bone when they’re done!”
Carlyle Group LP, the private-equity firm with more than a third of its $2.3 billion U.S. real estate fund in apartments, is reducing holdings of multifamily housing as rent growth slows from a post-recession surge.
The company is considering apartment sales as rising construction reduces multifamily shortages and price gains for rental properties make them less attractive for private-equity firms that seek returns of 20 percent or more.
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“Our capital was useful at the front edge of the recovery.” [in other words, we sparked the bubble and now we want out]
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Apartment-rent growth is slowing as the U.S. homebuying market rebounds and a wave of multifamily building adds to supply. In the third quarter, tenants on average paid 3 percent more than a year earlier after landlord concessions, down from 3.9 percent annual growth in effective rents in 2012
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“This remains well below what one would usually expect given such a low national vacancy rate,” Ryan Severino, senior economist at Reis, said in the report. “This reflects continued modest employment and income growth.”
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“Investors really want the new Class A properties so we’re selling into that demand,” Stuckey said.
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“Our basic view is we’re in a low-growth environment,”
Wise Dog
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