Multifamily Forecast: Investors Moving to Secondary Markets
The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing apartment opportunities, as a recent feature story from Multi-Housing News points out.
Mark Alfieri, CEO of Texas-based Monogram Residential Trust, lays it out clearly:
“The reality is that there is so much capital looking at U.S. multifamily. It is the number one asset class for investors globally. There is still terrific demand in the coastal gateway markets, but it’s gotten very expensive, not only to buy but also to build.”
Alferi goes on to explain that his shop is now focusing in on markets like Denver, Atlanta and Phoenix. Value-add plays — specifically those that update an older property with new unit finishes — are another option.
See the full article for additional insight into how investors are sourcing deals and catering to shifting demographics.