Commercial Real Estate Loans & Investment Sales

Pacific Security Capital Predicts Stronger Multi-Family Market - Why Rental Real Estate is Thriving

San Diego, CA, March 8, 2006 –- http://www.pacificsecuritycapital.com – Pacific Security Capital, a leading commercial real estate services company, announced today that there is strength in the outlook for the multifamily sector, despite cap rate compression in most major markets.

While many speculate over the single family home bubble, apartment owners and developers expect business to thrive during 2006.

“The strong demand for ownership housing has pushed prices beyond the reach of a larger percentage of the nation’s population and above what some consider sustainable values,” said Simon Acheson, Director of Pacific Security Capital. “As the economy continues to strengthen and the workforce expands, the demand for housing remains strong but inventory is priced at levels that more and more people can‘t afford or won’t spend.”

Pacific Security Capital believes that this growing trend is like to renew strength in the multi-family market.

“The single family home bubble is deflating and the condo market is saturated,” said Acheson.

Acheson will be presenting a session on Equity Financing for Multi-Family Projects at the upcoming Apartment Finance Today Developer Conference in San Diego, CA, March 8 – 10, 2006. Acheson will discuss the growth of rental real estate, including key questions, such as:
-    How high rent will rise
-    How developers can meet the increasing need for affordable housing
-    How long before rent prices peak

Join Simon Acheson at Apartment Finance Today’s Developer Conference.

Session Title: Equity Financing: Take an In-Depth Look at Equity Investor Trends and Deal terms in 2006.
Date: Wednesday March 8, 2006
Time: 4 – 5:30 p.m. PST
Omni San Diego Hotel, San Diego, CA
Register at http://www.housingfinance.com/aftdc/03_register.html

To learn more about Pacific Security Capital’s commercial real estate advisory services, please visit www.PacificSecurityCapital.com or call 1-800-844-6085.

Equity Financing

Article Via Chicago Tribune by Stephen D. Froikin

Equity means ownership. Equity financing means that you give an ownership share of your business to your investor. Your new "partner" expects to share in the profits of your business. Equity financing differs from debt financing in two ways:

1. Lenders expect to get their money back plus interest. The amount of your obligation is fixed. There is a repayment schedule and that's it. Once a lender is paid off the relationship is over.

2. Equity investors don't expect to get their money back in the same way as lenders. They expect to get a stream of income out of the profits of the company. There is no payment schedule and the stream of income can vary over time. This is a riskier situation for the investor, so the hope is for an even higher return than a lender would get. Of course, investors are interested in more than the stream of income. They'd like to be able to sell their share in the business if they ever need to. That's the return of capital, similar to a lender's getting back the principal amount of a loan, but the amount is not fixed. Instead, it depends on what a buyer would pay for the ownership share.

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For more information on Equity Financing, please contact Pacific Security Capital at www.pacificsecuritycapital.com or call 1-800-844-6085