Aesop on Multifamily

Slow and steady wins the race, if Thompson & Knight partner Ted Benn is any indication. He's been handling about one multifamily sale a month for the past eight months (totaling more than $183M), most of which have been REO property sales (not the Speedwagon, we hear he's more of a Jimmy Buffett guy, anyway).
 
We met Ted this week in the Thompson & Knight offices at One Arts Plaza, where he tells us the market for Class A Texas properties is actively attracting as many as 50 to 70 bids each. In most cases, the successful one is an all-cash buyer. Some newer properties are being sold at very low cap rates because the sale prices are still considerably below replacement costs, he says. Most of these sales are going to institutional buyers and REITs. Those buyers looking for short- to mid-term hold periods and those in need of immediate debt are largely inactive in this market segment, he says. The REO sales process has proven to be a learning experience  for many of the institutional and REIT buyers that are accustomed to buying from traditional owners and operators, Ted tells us.
Ted, here with his family and a koala in Australia this summer, will serve as moderator of Bisnow's Sept. 24 Multifamily Summit. (The koala politely declined our invitation to speak on the panel.) He tells us attendees will get a good cross-section of the multifamily market from the outstanding panel of well-known industry veterans. If you're looking for opportunities, the event will let you know what's out there, he says. Whether you're a buyer, seller, lender, investor, or attorney, you'll get a good snapshot of what's taking place in the market and where the opportunities are for you. Sign up now for the event, and say g'day mate to Ted while you're there.

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