Worth $200 million rental apartments with 654-units residential building will be breaking ground this June in Seattle as Toronto-based real estate investment advisor — Bentall Kennedy wager that constructing new building would be cheaper to buy than to assume foreclosed properties, as demand for rental properties spiked. Foreclosed properties parades the real estate market for the past few years, and the foreclosure crisis increases the demand for rental properties such as luxury apartments.
In Scotsdale, Arizona, new apartments will be constructed by Modus Development , as the demand for rental properties in the area increases. According to a report, the residential project would also be the first new residential building constructed in the area for the past ten years.
The luxury apartment, according to the president of the U.S. branch of Bentall Kennedy, John Parker, would be the first residential project that is going to be constructed by the company in the city for the last ten years.
In an interview, Parker said that there is going to be an increased demand in rental properties for the next couple of years, and the company is expecting that it would lead to a good return of investment.
Toronto-based Bentall Kennedy manages $23 billion worth of real estate.
According to the report from the Commerce Department for this month, a 78 percent increase in construction activities for townhouses and multifamily homes are recorded for January 2011, as leading real estate firms decides to build new residential projects due to the high demand of rental properties.
The head of research at Bentall Kennedy, Doug Poutasse, there would be an increase of about 1 to 1.5 million additional renters a year for the next few years in the country, and it would be focused on rental properties in San Francisco, Seattle, New York, and Washington.