Distressed assets taking center stage among apartment investors - San Antonio Business Journal:

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Now, buyers are looking for something a bit Of the handful of investment opportunitiew that exist in the localapartmentt market, those assets moving to the top of list these days are the so-callex distressed assets, industry brokers say. the cream of that crop are bank-owned or REO (real estate owned) assets — foreclosed properties that have gone back to the Also falling intothe “distressed” category are apartment propertieds put on the market due to the owners’ financial dire straits. Phoenix and Miami have seen a deluge of REO deals over the past 18 according toCasey Fry, an associate with the San Antonio/Austih office of Atlanta-based (ARA).
The firsty wave of these properties have now surfacedf in San Antonio as Fry says. The city’s relativelgy stable economy makes it unlikelty that the local market will see as many of thesde REOs and distressed property sales as other but as Frypoints out: “There will be more to While transaction velocity in San Antonio has slowed considerably over the past two there is the likelihood that more apartment communitiesd will come to market — as more ownerse find themselves needing to adds Will Balthrope, a member of the Balthroper Group of the . Balthrope’ws partner is Ryan who is based inSan Antonio. Balthrope’s office is locatedf in Dallas.
Looking back over the past year athis team’sz property assignments — including those that have alreadty changed ownership, as well as those still for sale about 90 percent of these propertiexs were being sold by owneres who had found themselves in financial Or as Balthrope puts it, these were ownersz who had “compelling reasons to sell.” What’a the attraction of distressed assets? Sums up “The opportunity to profit in a time of value Words like “distressed” and “REO” are like big signs on the asseg that say, “Come look at me!” Balthrope says.
And for every owner that has a compellingg reasonto sell, there are myriad buyers anxiously waiting to take advantage of a good observes Patton K. Jones, managinbg director of ARA’s Austinn office. So who are the buyersw now? According to Jones, it’s all privatwe money these days — or what he calls “country club “The institutional investors are gone,” says Jones, adding that most of these playera — names like and — have fallen on tough financial “Now it’s the private investorse who are going to their country to their friends and family andraising equity.
” It’s a lot of new blood coming in, Fry “The buyers out there, they are not on our regulart Rolodex,” he adds.