Yet GSA continued support -- coupled with more aggressivelending from some equity providers -- is closing deals and evenintriguing new buying opportunities for some investors. "The twoagencies are still in the market," says David Baird, nationaldirector of multifamily for Sperry Van Ness in Las Vegas. "Theunderwriting is a little tighter but they are probably the onlyreliable long term source of financing now with decentpricing."

Buyers must put up a larger equity piece, as much as 10%. Butnow that they are getting a bigger piece of the deal, equitylenders are becoming distinctly more aggressive in this space,Baird says.

With financing still relatively available, new investmentopportunities for some buyers are arising, thanks to the turmoil inthe residential markets, says Mike Hurst, VP of capital markets forBuchanan Street Partners. "In an environment where occupancies orrental rates are increasing, you have some opportunity to createadditional NOI because of where the market is." Because more peoplewill be locked out of the homeowners market, demand for apartmentspace will cause rates to rise, he explains. In debt plays, if aborrower kicks in more equity into an acquisition financing, he orshe can take advantage of a favorable swap environment to fix thecost of capital at 5%, Hurst says.