What's Hot for Multifamily in 2022?
A leading news source in commericial real estate, GlobeSt.com recently shared their summary of what executives in the industry predict will be in store for multifamily in the coming year. They suggest that second only to industrial real estate, multifamily was a massive value winner over the last year.
They suggest that business models, personal preferences, geographic area, expertise, and connections all affect the strategies apartment owners will seek going forward, but value-add strategies will be key.
From the article:
“Given the volume and velocity of capital looking for exposure to the sector, we are expecting all categories of multifamily assets to be competitive,” Matt Frazier, founder and CEO of Jones Street Investment Partners, tells GlobeSt.com. “However, where value-add strategies offer opportunities for incremental investment return, and where renters have more income as payrolls continue to rebound, value-add strategies may be particularly sought after.”
“Once you purchase a multi-family asset, always look for the value-add,” agrees Jonathan McKay, founder of the McKay Organization. “Plain and simple: value-add is the opportunity to make money on your buy. By investing in a few renovations, you can elevate a property to a comparable price that is more than what you paid for, including renovations. With this strategy, you can expect consistent cashflow and solid equity appreciation.”
You can read the full article HERE