IS MULTIFAMILY OVERPRICED?

Laramar Properties co-founder Jeff Elowesays there's something of a gold-rush mentality in multifamily property investment these days (Go West, Young Men!). And it's mainly the large coastal markets that are bringing in inexperienced investors who might, when all is said and done, be paying a little much.
 
Jeff took time out this winter to hit the slopes in Snowmass, Colo., with his kids—Jeff's the tall one, we think—and he'll take time on March 13 for something a little less physical, our Bisnow Multifamily Summit (shameless plug: sign up today!). Multifamily assets in major coastal markets are attractive, Jeff says, because of relatively strong employment, supply constraints, and greater liquidity upon exit. But only at prices that make sense, and patient investors can still find those deals in an environment in which cap rates are all over the map, 4% to 8%.
 
Kirkland & Ellis' Josh Hanna was in Arubanot long ago on a rare vacation, enjoying an even milder winter than Chicago's, but he'll be back in time to speak at our event on March 13. Josh tells us that lately he represented Archstone in the formation of a new multifamily fund capitalized to the tune of $300M, along with the fund's first acquisitions—a $131M property in Manhattan and a $42M one in Boca Raton. He's also representing an investor from down under in a JV to acquire a trophy office property in Houston. Back in '07, Australians were the No. 1 foreign buyer of US property, but that came to a halt for a few years. The Australians are back, Josh says, looking for fair dinkum deals on US real estate.

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Related Topics: Jeff Elowe , Josh Hanna , Young Men
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