Investing in Real Estate

For the past decade, the real estate market has been experiencing some fluctuations. For years, it’s gone back-and-forth as being regarded as a safe investment. Now as we’re entering the end of 2015, investing in real estate is once again a relatively safe choice. Jerold Novack

While most investors are still experiencing feelings of unease after the 2008 market crash, investment portfolios are once again being diversified with real estate investments since 2013. Some are even saying investing in real estate is safer than investing in gold.

And why would’t they? Real estate investments tend to have an excellent long-term yield in addition to being a great hedge against inflation. The trend to invest locally is popping up, as discussed on the Blue Rock Real Estate website. The driving force behind the trend, according to Richard Spillane of Spillane Money Management, is that investors buy properties in familiar neighborhoods partly for the income and partly for the diversification. The attraction to the properties is that investors can actually “get their arms around” them.

While there are still a few investors ready and willing to invest in properties that are miles, states, and oceans away, Elke Mariotti, a CFP and an agent with Signature Premier Properties in Huntington, N.Y., said the appeal to investing locally is in its simplicity.

In today’s market, real estate investing is more about capital preservation, as there is little impact on commercial real estate yields due to the spread between cap rates and interest rates remaining so great. U.S. real estate is a fully-priced market, and investors know it.

In the last year, Chinese investors have surged nearly $6 billion in United States commercial real estate properties, $4.5 billion of which went directly to properties in Manhattan. Foreign capital is beginning to look at secondary markets as lucrative, and are clearly taking advantage of it.

Jerold Novack Blue Rock Real Estate

 

The Charles Makes History

A unique, luxury space located in the Upper East Side of Manhattan, The Charles was designed by Ismael Leyva Architects, developed by Bluerock Real Estate, LLC built in 2013. The condominiums are all four-bedroom, four-bathroom spaces that take up the entire floor with elevator access inside each apartment. The Charles

Located on First Avenue between East 71st and East 72nd Street, the 32-floor, 27-unit architectural marvel sits in a coveted, quiet neighborhood between the East River and Central Park. Recently, the luxurious residence made headlines for a record-breaking sale according to real-estate appraiser Jonathan Miller: the highest amount ever paid for a home on the Upper East Side east of Third Avenue.

Two buyers, who are related to one another, purchased the spaces on the 29th, 30th, 31st, and 32nd floors to create an approximately 11,750-square-foot quadruplex. The spaces (two duplex apartments, one penthouse apartment) sold for a total of $58.635 million.

And for that price, the buyers will not only get a large, luxurious and unique space in one of Manhattan’s wealthiest neighborhoods, but The Charles also features concierge and doorman services, a gym facility, as well as a children’s playroom.


 

Visit the Bluerock Blog for links to more press about this historical sale.

 

Bluerock Residential Growth REIT Announces First Quarter 2015 AFFO per share of $0.13 vs. Guidance of $0.10-$0.11 per share; Pro Forma AFFO per share of $0.29 vs. Guidance of $0.26 – $0.28

Bluerock Residential Growth REIT, Inc. (NYSE MKT: BRG) (“the Company”) announced today its financial results for the quarter ended March 31, 2015. READ MORE>>>