"This was a historic fourth quarter for our firm as themultifamily investment market rallied, clearly demonstrating thatapartment-rental buildings are far more resilient than any otherreal estate class, including office, retail and industrial," KenUranowitz, Gebroe-Hammer's managing director, tells GlobeSt.com."Based on these closings and current deals in the pipeline, weexpect this trading velocity to continue into 2010."

According to Uranowitz, multifamily investments are favored bylocal savings and loans and community banks, which have emerged asthe leading lenders in today's economy. This is primarily becauseapartment buildings are considered to be a less volatile investmentrisk due to the basic need for housing. In addition, the rentalpool remains consistently strong. Uranowitz adds that he has alsoseen buyers who do not require financing, opting instead for 1031exchange deals and plunking down all cash.

"For the past 12 to 18 months, potential first-time homebuyershave been rendered inactive by high rates of unemployment and alack of income stability. It will take some time for any noticeableimprovement, not just in real data, but more importantly, from apsychological vantage point," he says.