Why Now’s the Time for Multifamily Owners to Pull the Trigger on Deals

Pricing for Class-B assets and well located Class-C is at an all-time high for DFW making this the best sellers’ market in recent memory, says Marcus & Millichap national multi-housing group associate director Michael Ware (here with his two favorite assets, 7-week-old William and 17-month-old Estella). He’s still tallying up the numbers, but 2014 looks to exceed both volume and transactions over the previous year for his team, which includes Marcus & Millichap national multi-housing group director Will Jarnagin, senior associate Stephen Crittenden and recently added Matt Moore. This year looks to be an even better year for transaction volume, although Michael doesn’t anticipate significant cap rate compression continuing on the B and C assets.

His team has 13 deals either under contract or listed totaling more than 2,000 units and $80M in volume solely in the Class-B and -C realm. Plus, he tells us he has 10 more deals that are in the proposal phase while chasing some off-market product. Among the deals in escrow: 200-unit Simari, 146-unit Pioneer and Executive (pictured), a 700-unit confidential deal and the 159-unit Los Colores, among others. Michael says it’s hard to know how much runway is left in the multifamily market, but he advises owners that if they don’t see themselves owning a particular asset through another down cycle, then there’s not a better time to pull the trigger. Michael says if you don't mind holding through the next downturn, just make sure to address major deferred maintenance or capital items while the market is good now and refinance with some cheap long-term debt. Congrats to Will, who recently got hitched.

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