Housing values are slowly starting to recover and with this resurgence, money is trickling back into the market. Chief Acquisition Officer Pete Martay of Pangea Properties, a private Real Estate Investment Trust (REIT), explains that an indicator of this upturn in the market stems from capital becoming more readily available.
“Across all asset classes capital has grown,” says Martay. “In addition to a significant amount of new equity capital, debt markets are also improving. As a result, the markets have become more competitive and driven up prices.”
Overall supply in the market is down as banks have already purged the worst of their assets and much of the assets they still have are unprofitable. “Significant capital is chasing a limited number of deals,” adds Martay. “While there are still some opportunities they are fewer and farther between. Pangea has been more selective as many of these distressed properties have made their way through the system and grown more expensive.”
ABOUT PANGEA PROPERTIES: Pangea Properties is a private real estate investment trust (REIT) targeting the distressed residential multi-family real estate market. Pangea was founded in 2008 with the mission to bring service, value and care to its residents. The unique REIT serves as both the property owner and the building manager, utilizing a call center to support the high bar for service and scalability. Today, Pangea has over $250 million into 8,000+ apartment units throughout Chicago, Indianapolis and Baltimore, with the goal of continuing to expand within current markets as well as into new markets. Pangea has been highlighted by several media outlets including USA Today, WGN TV, Chicago Magazine and the Baltimore Business Journal, among others. In 2013, Pangea debuted at number 42 overall on the annual Inc. 500 list, ranking first overall for the Chicago market and second for the entire real estate industry. Pangea’s founder Al Goldstein has been named one of Crain’s 2013 40 under 40 and is a recipient of the Ernst & Young Midwest Entrepreneur of the Year. For more information, visit Pangea online at www.pangeare.com