"Multifamily properties remain very attractive to investors,"says Jeffrey Wiener, president and co-managing director. "Demandfar outweighs supply, especially in Northern New Jersey, among bothour long-time clients and investors new to the market. Themultifamily real estate market continues to be the strongestsector."

The product type also provide a safe place to invest whereowners can get a decent sheltered return, especially compared tothe low returns presently offered by banks, Robert Holland, seniorvice president and co-managing director, tells GlobeSt.com."Despite the recent gains in the stock market, investors alsoremain cautious given its volatility in the last few years.Multifamily properties are generally safe long-term investmentsespecially in our markets. In New Jersey, for example, vacancyrates remain relatively low, rents are among the highest in thenation and we are experiencing an increased demand for multifamilyproperties."

The popularity of multifamily as an investment type stems fromthe stability of returns and the availability of financing atattractive rates, agrees Brian Whitmer, director of Cushman &Wakefield's Metropolitan Area Capital Markets Group in EastRutherford. "Multifamily has the advantage of plentiful debt beingoffered by the government-sponsored agencies Freddie Mac and FannieMae, at loan-to-values as high as 80%; commercial real estatemortgages are topping out at 60% to 65% LTV," he tells GlobeSt.com."Lower interest rates, ranging from 4.6% to 5.5% on five- to10-year term loans, also support lower cap rates. Additionally, theability to be interest-only for the first two years allowsinvestors to be debt leverage neutral when cap rates are in the low5% range. They can maintain that position once amortization beginsin the third year by taking a positive outlook toward rental rategrowth."