Distress Finds Single-Family
Investors seeking distress ops are trying out single-family housing, specifically portfolios, according to Colony Capital prez Richard Saltzman who spoke at NYU Schack's 46th annual cap markets conference in Manhattan on Wednesday. (Ok, we know single-family isn't multifamily--unless you buy up a lot of it and stack it end to end...) Economic, wage, and employment growth is still mediocre, he says, which has turned the rentership versus ownership argument on its head. You can buy these houses at a significant discount to replacement cost and rent them with 6% income growth, he says. "It's a recipe for great investment success, and that's why we're in that space." His other investment sweet spot: Europe, echoed by many of his fellow panelists. (Sounds good to us, we've got a pair of lederhosen that are just collecting dust.)
