December 26, 2007

Just a quick note to tell everyone that we are moving our offices tomorrow.  Our new address is:  6232 N. 7th Street, Suite 208, Phoenix, AZ.  85014.  Our phone number will stay the same, 602-943-3370 and the fax number will be 602-943-4002.

We look forward to the change and to the new year. 
Have a Happy New Year!!

Linda


October 18, 2007

We want to thank those of you who e-mailed us your responses or called to comment on our newsletter and web page. We appreciate and welcome your input.

We’ve been reviewing your comments along with what we read and hear, daily, in the papers, on the web and from our peers. You all know that I feel very strongly about Arizona in the long term. We’ve seen these peaks and valleys before and weathered this type of storm quite well. I know back in the early 1980’s, when I was still a banker; we went through a very similar situation with housing due to the increase in interest rates (reaching highs in the low 20% range). We said that we might as well put a box on the front desk so people could drop their keys off when they got off of the elevator. We made it through that and we will make it through this, also. Many “experts” feel it will take our economy from 12 to 24 months to regain stability. We look on the bright side as this is a shorter time period than many other markets.

The one shift we still need to see in this apartment market is an adjustment to prices. We have seen this in a dramatic way in the residential market with large price reductions, special offers of cars, vacations and extras included. You name it. We are beginning to see this in the multi-family market, also. We are tracking many of these properties. A lot of these properties were purchased within the last two years. They are now being put back on the market with an asking price that has no bearing on NOI let alone on proforma NOI. Many of these owners are telling us that when they bought these properties, they were told that they would be able to sell them for large profits after only one year! Well, it’s just not happening. Not only have rents actually gone down in many parts of the Valley while concessions have gone up, many apartment dwellers are moving into the single family rental market, creating an increase in vacancy in the apartment market.

Lenders have also decided it was time to take a deep breath and slow down. Most lenders we talk to are not even looking at proforma numbers; but are saying let’s see where the property is today. They are looking for real equity and real, not future, debt coverage.

There are many good properties on the market today that are just not selling and they are not selling for this reason.

Give us a call!! We look forward to hearing from you.

Linda

Newsletter October 2, 2007.pdf


NewsletterSeptember 24.pdf


Newsletter09-17-2007.pdf