Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Finding Upside in Real Estate’s Downturn

By Ben Steverman - 2011-09-27T18:19:45Z

5 of 15

Playing on Pricing Power

Greystar Real Estate Partners manages 190,000 apartments and owns 15,000. Founder Bob Faith is buying many more, including a bankrupt Los Angeles apartment complex. He says he gets good prices--$20 million to $50 million for a complex of 200 units or more--because of eager, debt-laden sellers. Developers aren't building apartments at a time when the "echo Baby Boom" is entering prime renting years and many other Americans have lost homes through foreclosures, he says. "Lots of demand and very limited supply gives pricing power to landlords." Publicly traded real estate investment trusts that own apartments have done well, with Equity Residential (EQR) and AvalonBay Communities (AAVB) both returning about 30 percent in the past year.

Photograph by Getty Images
Advertisement