Eric Christopher, Commercial & Investment Real Estate Broker

Just Closed - 944 E 5th St., Long Beach. Interesting transaction - A turn of the century house, converted into a Triplex, a free standing batchelor unit and a Duplex. An odd mix to say the least! The location saved the day on this one -- basically Alamitos and 4th Street. Congratuations to Sellers -- Jay & Sue and also Buyers, Marshall, Jesse et al :)

Just Closed - 5523 Atlantic Ave., Long Beach. This 6 unit complex sits in a pretty tough zip code, but the actual property is in pretty decent condition. Congratulations to Sellers, Julio and Jean Pierre as well as Buyers, the Weinberg family, All whom I had the pleasure to represent in the transaction.

http://www.latimes.com//la-fi-0808-long-beach-trade-center

The Long Beach Business Journal interviewed me about the strength of the Seller’s market for apartments. Prices appear to be heading higher, at least until interest rates go up. http://www.lbbizjournal.com/

Just closed my 12 unit listing at 1980 Henderson Ave., Long Beach. OK building in a "tough" area, but that's the only place to get cash flow now. Buyer demand is off the hook with interest rates at all time lows. It makes selling listings easy (??)..But getting the listing is a different story!!! :)

How long Janet Yellen and the FOMC can support the economy with artificially low interest rates? You can see the skittishness in the markets every time she opens her mouth. The effect, however, is that a Buyer can still achieve an apartment loan for 3.65-3.75% interest. That extra cash flow can really help in the "shake down" period when you are doing repairs and trying to stabilize the property. Prices have been rising as a result. Now that rents are beginning to increase, prices will stay on the same uptrend until rates are increased. Additionally, the economy typically does well in a pre-election year.

One month into the new year, the Long Beach apartment market is on good footing and will experience improvement in 2012. Some owners still report challenges in keeping units occupied, but most cite improvement from one year ago (and also reduced move-in incentives). This will continue in 2012 with additional jobs added to the economy. As occupancy approaches normal, small rent increases are anticipated. Increases are being reported in some Orange County submarkets. Sales activity of Long Beach apartments is increasing as interest rates hold in the 4.0 - 4.25% range, fixed for 5-10 years. At the same time, Investors have realized apartments have performed splendidly when compared to other assets over the last five years. Buyer confidence is higher than it's been in 4 years.

Since the City of Long Beach doesn't have enough money to support its services, and just announced HUGE pay increases for city employees, it's proposing a feee on Long Beach apartment owners for a "Fire inspection fee" of their properties. Forget the fact that Insurance companies already do this in order to offer coverage and Long Beach apartment owners already pay for fire department services in their property tax bills You've got to love hidden government shake downs to cover inefficiency

Southern California apartments continue to be an excellent investment class, compared to other types of real estate and the volatile stock market. Long Beach apartments are especially attractive with no rent control to contend with. I was lucky enough to contribute to the below linked article in the Long Beach Business journal. Let me know your thoughts.

Demand increasing for OC apartments based on people needing to move from foreclosed homes and some job growth. People are happy to move back out of Mom & Dad's or off their friend couch!

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