Multifamily Investors Turn Aggressive As Sellers Gain Upper Hand
All dressed up but no where to go. Well, that's the feeling among a number of multifamily investors according to Orion Group Chief Investment Officer, Mr. Ricardo Rivas. Investors are ready with their plans and financing but are chasing a dwindling number of properties Mr. Rivas contends.
The increased competition for available properties is letting sellers demand their price and sit on their properties until they get satisfactory offers. Investors who offer cash (hard money) with quick closing are gaining an upper hand given the strong competition.
Another casualty of the hot multifamily market is the value-add property. With most value-add product already having been traded, investors are dipping toes into deep value-add - properties, which involve replacing roofs and HVAC systems further straining returns.
Mr. Rivas, however, believes transaction volume should recover in 2018 as multifamily fundamentals will continue to remain strong and investors get greater clarity about Fed's interest rate moves.
The entire article can be read here.
