Charles Blumenkehl, managing partner of Blue Asset Management LLC sees buyers favoring smaller and more energy efficient homes with lower costs over larger “McMansion’ type properties.
According to Blumenkehl, “the trend for buying smaller more practical housing has been increasing over the past few years for a number of reasons. Obviously, affordability is a factor, given the economic contraction of the past few years leaving less buyers positioned to buy the more expensive larger homes in their markets. In addition, the trend to go green, using less energy and wasting fewer resources, the trend to move closer to urban areas which provide more nightlife and shopping, and the trend for owner occupied multi family housing is impacting the big box home marketplace”. Blumenkehl added, “As a result of the lesser interest in these large homes today, our fund is more focused on acquisitions of smaller single family type homes between 1500 and 2200 square feet and multi-family homes that meet owner-occupant criteria.”
Blumenkehl also said he sees a slowdown in sales of these type properties amongst real estate funds who occupy the same business space as his fund, and sees an increased trend to lease/to purchase larger homes as a means of keeping them afloat and avoiding the expensive carrying and maintenance costs these properties can represent.
Blue Asset Management LLC was founded in 2008 by Charles Blumenkehl to leverage opportunities made available through the mortgage meltdown and foreclosure crisis impacting the economy. Blue Asset Management is a purchaser and seller of performing and non performing residential and small cap commercial mortgages, distressed and investment real estate in northern New Jersey. For more information about Blue Asset Management LLC, log onto the company website at www.blueassetmanagementllc.com or call the company directly at 973 835-1400.