Repositioning a Multifamily Asset

Multifamily investments, particularly value-added strategies, have been of keen interest to real estate investors for years now. Successful execution of a multifamily investment offers excellent risk-adjusted returns when compared to other classes of real estate such as industrial, retail, and office. From a volatility standpoint, multifamily enjoys relatively stable long-term cash flows with less downside risk during periods of recession due to stable tenancy in most major markets. The stability during downturns is also supported by the fact that recessions tend to make renters out of owners, increasing demand for apartments.

Lennar Technology: The Connected Consumer Has Arrived in Multifamily

As multifamily homebuilders progress into the 21st century, they have looked to integrate electronics and technology to simplify and enhance their businesses. The use of programs like Yardi and MRI for both property management and accounting have become the standard. Like Moore’s Law – the observation that the number of transistors in a dense integrated circuit will double approximately every two years – the use of technology in multifamily properties must equal both the pace and demand of present and future tenants.