The apartment market is booming and some experts say it is being overbuilt. One Charlotte-based firm will rely on the continued strength of the apartment sector. Ginkgo Residential Trust Inc. may go public. They are in the business of owning and managing apartments in the South. They have four or more complexes located in Charlotte at this time.
They plan to raise funds through public stock offerings in the amount of $250 million dollars. in a public stock offering. They filed for permission to go public. There is a United States Commission that deals in securities such as these public stocks. Their focus is on mid-level apartments. They want to expand along with the growing economy, where there is growth in jobs. Apartments are an investor’s dream these days. It is growing over and above other commercial real estate.
The recovery that started in early 2010 is growing stronger. For those who haven’t heard of the real estate investment trust, it is formed by investing in mortgages or properties. It is then traded the way stock is traded.
The average apartment building that is one of Ginkgo’s investments has two or three bedrooms, has two or three stories and is built two decades ago. This is lucrative business with the apartments having a 94 percent rate of occupancy. People who lose a home to foreclosure, must rent a place to live, possibly long term since they cannot qualify for a mortgage after losing a home through non-payment. It is those who have lost their homes to foreclosure, who must have a place to live.
In addition, there is another group of people born between 1977 and 1997, who are called the echo boomers. The trend is for them to get married and start families later. Thus, they rent longer before looking for a house to purchase. Some continue to rent because they do not qualify for a mortgage. These echo boomers are one fourth of America’s total population and they include recent graduates, police officers, paramedics, office workers and teachers.