CAPREIT Hunts Apartment Deals Away from the Core
As prices balloon, multifamily product in core markets isn't the ticket to strong returns that it used to be. CAPREIT president Andrew Kadish, who offices in Philadelphia, tells us why his company's massive acquisition roll has generally steered away from core product. Andrew will be a speaker at the Bisnow Multifamily Annual Conference (BMAC) on Dec. 3 in DC.
Pricing is extreme in some markets, with the combination of low-cost debt and the great availability of capital driving cap rates to historic lows in primary markets and a score of secondary markets as well, Andrew says. Even so, CAPREIT still sees growth opportunity for the company. "A midsize operator like CAPREIT must be nimble and have the wherewithal to explore and source opportunities in the secondary and tertiary markets to continue attaining attractive yields."
To that end, CAPREIT has acquired nearly $250M in new product this year and is on pace to acquire another $100M by year's end, Andrew notes. Currently, the company manages nearly 60 properties nationwide, with vacancies dropping 1% to 2% in each of them over the past 12 to 18 months. Among others, the company recently acquired Preserve at Cascade, a 210-unit apartment property in Atlanta, a solid location in the Cascade Heights neighborhood, but not in a core market.