But there is one investment that continues to yield a solidreturn despite the ailing economy--multifamily rental housing. Thereason is the downside protection offered by a steady flow ofrental income. No matter how bad the economy gets, people stillneed a roof over their heads, and rent will come ahead of carpayments, credit card debt and other financial obligations.

Indeed, the more people who are forced out of their homes byforeclosures, unable to buy a home due to tight credit or unwillingto buy a home due to uncertainty about the future of the for-salehousing market, the greater the demand for rental housing.Moreover, the New York/New Jersey metro area's dense populationcontinues to fuel demand, and that population has some of thehighest household incomes in the nation.

Because of this demand, we continue to see a large number ofapartment house deals, and we see no prospect of the demandabating. Although credit remains tight, interest rates are at anhistoric low for borrowers with good credit, enhancing theirability to purchase such properties.