North Austin Rising
Experts at Bisnow's Austin Multifamily Summit Wednesday predict 2014 will be the year of Class-C properties. That's because they account for 50% of CMBS loans maturing next year, and value-add deals are going incredibly smoothly. Deverick & Associates managing director Deverick Jordan (whose two young children are 11 months apart) says this will have a big impact on North Austin. There's a lot of older Class-C product there, and they make for great value-add plays because they have solid occupancy, sell at 7 caps, and properties are seeing as high as 15% rent growth. (A rehab can push it from $0.80/SF to over $1/SF almost instantly).