{"title":"Managing risk in apartment development","authors":"Marc A. Louargand Ph.D, Brian T. Murdy","doi":"10.1002/bref.67","DOIUrl":null,"url":null,"abstract":"<p>Multifamily investment is popular with US institutional investors at present despite weak fundamentals in the rental market. There is evidence that apartments provide some protection from recessionary forces and are the first product type to recover from a downturn. Capital flows have increased to the sector, putting downward pressure on capitalisation rates. Development of new stock allows investors to capture the spread between return on cost to build and capitalisation rates on existing properties. Managing the risks inherent in development is a different prospect than underwriting existing properties. This paper examines methods for managing the risks associated with construction, marketing, financing and interest rate risk, among other factors. Copyright © 2002 Henry Stewart Publications</p>","PeriodicalId":100200,"journal":{"name":"Briefings in Real Estate Finance","volume":"2 3","pages":"203-209"},"PeriodicalIF":0.0000,"publicationDate":"2006-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1002/bref.67","citationCount":"38","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Briefings in Real Estate Finance","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/bref.67","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 38
Abstract
Multifamily investment is popular with US institutional investors at present despite weak fundamentals in the rental market. There is evidence that apartments provide some protection from recessionary forces and are the first product type to recover from a downturn. Capital flows have increased to the sector, putting downward pressure on capitalisation rates. Development of new stock allows investors to capture the spread between return on cost to build and capitalisation rates on existing properties. Managing the risks inherent in development is a different prospect than underwriting existing properties. This paper examines methods for managing the risks associated with construction, marketing, financing and interest rate risk, among other factors. Copyright © 2002 Henry Stewart Publications
管理公寓开发中的风险
尽管租赁市场基本面疲弱,但目前多户住宅投资受到美国机构投资者的欢迎。有证据表明,公寓在一定程度上保护了经济不受衰退的影响,是第一个从衰退中复苏的产品类型。流入该行业的资本有所增加,给资本化率带来下行压力。新楼盘的开发使投资者能够获得建设成本回报率与现有楼盘资本化回报率之间的利差。管理开发项目中固有的风险与为现有房产提供担保是不同的前景。本文探讨了管理与建设、营销、融资和利率风险相关的风险的方法,以及其他因素。版权所有©2002 Henry Stewart Publications
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