Blue Asset Management Bullish on Multi Family Housing

Wayne, NJ, April 05, 2011 --(PR.com)-- While residential real estate sales are still affected by the foreclosure crisis and restrictions on financing still impact the real estate market creating difficulties in obtaining home financing for many buyers, the need for housing still remains. The result, according to Charles Blumenkehl, managing partner of Blue Asset Management LLC, is that multi-family housing has become a more popular investment for the company as it seeks to take advantage of the lower market values and rental demand in today’s current environment.

According to Blumenkehl, “There is no question that new and existing multi family housing is returning to healthier market conditions. We see this in our own fund, and our perspective is supported by studies released from both the National Association of Realtors and the National Association of Home Builders.” Blumenkehl points to statistics released by the two organizations over the past two quarters which show demand for existing multiple family dwellings increasing while builder sentiment for the development of multi-family housing has increased to its highest level since 2006.

“Additionally,” says Blumenkehl, “with interest rates as low as they are and real estate prices at such attractive levels, qualified buyers of multi family homes can often find themselves living 'rent free' with the rent they receive from the rental unit or units in their home exceeding the cost of their mortgage payment, and the yield for funds like ours are more robust as a result.”

Vacancy rates for multi family property are also declining as more families in need of housing end up renting instead of purchasing due to financing restrictions. Also, families who have lost their homes due to foreclosures or short sales having no choice but to rent for the next number of years. The Multifamily Vacancy Index, a study which measures the level of vacancies in the real estate rental market, also declined to its smallest number since the third quarter of 2006-and is half of what it was a year and a half ago, indicating substantially fewer rental vacancies in today’s real estate market.

Charles Blumenkehl and Blue Asset Management LLC own, manage and operate residential and commercial rental properties throughout northern New Jersey. For more information about Mr. Blumenkehl or Blue Asset Management LLC, log onto the company website at www.blueassetmanagementllc.com or call the company directly at 973 835-1400.

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