Multifamily Owners Happy To Let Go
It's not a seller's market just yet, but it's still a good time to divest your multifamily properties in the Carolinas, Multi Housing Advisors managing partner Marc Robinson tells us. (When's it gonna be a seller's market? We've got hundreds of custom bird houses priced to move.)
Even though interest rates have ticked up recently, they're still at historic lows, meaning that cap rates also remain at historic lows, thus yielding very strong asset pricing, Marc tells us. (He's here with colleague Jordan McCarley.) That wouldn't be so important if buyers weren't keen to get into the game, but they are--buyers of all stripes have discovered multifamily markets outside of the largest cities and away from the coasts. (They were playing around with Google Earth and were astonished to see America had stuff other than NY and LA.) "This creates an excellent environment for sellers," Marc says.
Marc and Jordan repped a number of sellers in recent multifamily deals in the Carolinas, including two in Charlotte: the 454-unit The Park, located at 2332 Dunlavin Way, which Northland Investment Corp sold to FMM for $12M; and the 220-unit Beacon Eastchase at 1600 Chasewood Dr, which Eller Capital Partners purchased for $8M. The duo have also repped sellers in a number of smaller deals in Greensboro.
Trade Street Residential CIO Ryan Hanks asserts that it's just as good a time to be a buyer of multifamily. "Charlotte boasts employment fundamentals that position it for sustained economic growth," he tells us. "What also makes Charlotte attractive is its below-average cost of living compared to other major metro areas." (You can pay your rent here and still have enough left over to eat, which is a nice perk.) Businesses will continue to be drawn to the area, resulting in demand for housing, and so it's still a good time to get a piece of the multifamily action. Trade Street Residential recently acquired Fountains Southend, a newly constructed, 208-unit, Class-A urban TOD in Charlotte for $34M.