Multifamily interest continues to remain strong; the demand for deals appears to be at peak levels. We are seeing the return of “pre-sale” transactions—a trend that we haven’t experienced in years. Buyers are also focusing on suburban deals, another trend that is gaining momentum as cap rates on infill locations fall below the 5 percent mark.
The most sought-after deals are where a “value-added” story exists, especially the early 1990s vintage product, where kitchens and baths can be updated. We’ve seen several recent deals where a new buyer has gone in and updated these rooms then realized significant rental increases. There is tremendous equity available in the marketplace for deals with a story.
Read more...Real Points » Blog Archive » Brian O’Boyle: Demand for Multifamily Deals at Peak Levels via Dmagazine.com
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