In an article on the explosion in the number of transactions for apartments, condominiums and other multi-family developments, the Daily Journal quoted Stephen C. Ryan, a partner in Cox Castle & Nicholson's San Francisco office. Ryan noted that his work in this area has "markedly" picked up in the past year.
"Between the Lehman crash and the summer of 2010, multi-family housing was just as impacted as all real estate by the economic downturn," Ryan said. "But then it was like a light bulb went on, and all of a sudden, everyone was in it. I think part of it was pent-up demand that hadn't been met when the economy crashed and the markets seized up."
Ryan added that many questions remain. "Fannie and Freddie are definitely in limbo," he said. "The overall question is what kind of government-sponsored lender structure are we going to have."
Another area of uncertainty is Gov. Jerry Brown's plan to reroute redevelopment funds from counties to the state, Ryan said.
Still, the multi-family housing space is so hot, Ryan said, "A lot of this feels like a bubble, which is a concern among some who practice in this area."