Hungry for Multi-Family: Aren't We All?!

Hungry for Multi-Family: Aren’t We All??

If you’ve had a conversation with a real estate investor, chances are the term “multi family” or “apartments” has been discussed. Why is that? The sales volume of multifamily properties equated to $12.5 billion before the end of last year alone, while 2016 was a record-breaking year for apartment sales.

Contributing to the attractiveness of multifamily properties is the strong potential cash flow; mixed with tax breaks, attractive interest rates, maintained property value, and ease of financing.

But apartment sales are only hot in Cleveland, right? Wrong.

The secondary and tertiary markets saw fifty-five percent of the sales of apartments over $1 million last year. Cap rates in primary markets have remained low, while cap rates in secondary and tertiary markets have fallen from 8 percent to about 6 percent.

Where are all the properties hiding?

A trend we’ve seen is the increase of off market sales in apartments, but did you know that marketing a property can increase the sales price by 23%, which opposes the idea that off-market deals can yield higher payouts? We’ve recently worked with bankers who have shared an increase in appetite for lending on multifamily products, however, we need more properties! There are so many investors seeking multifamily… Is now a good time for you to sell? Call us today. We’d love to show you what we can do for you and your multifamily property.

View our multi-family properties here.