Chicago, IL, June 26, 2013 --(PR.com
)-- Signs of an improving multi-family housing market are visible with an increased demand for apartments. However, even with the high demand for units, prices for buying buildings are still rising. This is most likely due to the fact that capitalization rates are near their all-time low and rents are higher than ever. According to Al Goldstein, President of Pangea Properties
, a private real estate investment trust (REIT), it’s important to make rents affordable to match the incomes of potential residents, while adding value to the community.
“To make a profit investors are continually raising their rent rates without adding additional value to their residents. We are also not seeing enough healthy wage increases in the current economy for residents to keep up with the rising rent,” says Goldstein. “As the market heats up again the result for many investors is an expensive purchase price which is leading to expensive rents, limited property improvement and thus unaffordable units that remain empty.”
Pangea Properties is taking a different approach by evaluating what value they can bring to the building, while looking into the surrounding neighborhood and community initiatives before purchasing properties to ensure they make a sound investment. Their unique focus lies in a specific niche market where distressed, foreclosed or boarded up buildings are all too common. By making sounds investments and even after investing significant money in the complete rehabilitation of the building, including an array of amenities and security features not typically available at their price point, Pangea Properties is still able to rent units at or even below market rents. The added value and superior level of service allows Pangea to focus on the longevity of their investments, while providing ideal renting options within the established market.
“Prior to purchasing any building we look at how our presence will better the community and provide long term quality for our residents,” continues Goldstein. “It can be difficult to rationalize a risky investment, especially for multi-family buildings, if you aren’t able to add value to the property and community. Instead of simply capturing the value of a building investment, we strive to provide affordable apartments and stability to our residents to benefit them in the long run.”
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 by Al Goldstein and Steve Joung with one mission: to bring service, value and care to its residents. The entrepreneurs saw an opportunity in the Chicago market to create a real estate firm that serves as both the property owner and building manager, utilizing a call center to support the high bar for service and scalability. Today, Pangea has invested 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 WGN TV, Chicago Magazine and the Baltimore Business Journal, among others. Pangea's Founder Al Goldstein has been named one of Crain's 2013 40 under 40 and is a finalist for Ernst and Young's Midwest Entrepreneur of the Year. For more information, visit Pangea online at www.pangeare.com, www.Facebook.com/PangeaRE or on Twitter @PangeaRE.