May 13, 2019

The drop in interest rates fired up value-add buyers, causing cap rates to fall even further. While there are slightly fewer groups aggressively targeting only value-add deals (particularly in Texas due to real estate taxes), competition has grown even fiercer. Hard money acquisitions at contract signing are becoming more frequent. The combination of high-net-worth capital More

The demand for equity in the multifamily space will be immense, as equity capital stays fluid. There’s plenty of equity-provider interest in multifamily, especially from global institutions who want experienced, specialized operators to mitigate risk. Targeted IRRs will be in the mid-teens-plus with preferred returns in the low-teens. Construction IRRs should be in the high-teens More