Are Sellers of Multi-family Investments Ready to Be Realistic on Their Value Expectations?

Contributing Author: Jay Verro, CCIM

It’s no secret that the Multi-family investment sector has been a strong, solid, stable performer in most marketplaces for more than a decade and it does not appear it will change in the years to come. However, most sellers have yet to adjust their mindset towards proper valuations as interest rates rise. Over the past year, the 10-year Treasury, which has been as low as 2.02%, is now hovering in the 3% +/- range. When you couple this with a lender’s upward trending interest rates, the lender’s underwritten NOI compared to a seller’s provided income and expenses, there is a disconnect between bank valuations and seller’s expectations. Recently, these factors have had a negative effect on underwriting and ultimately on the perceived asset value.

I’ve seen this in smaller properties, as well as properties that are operated with a seller’s staff that are shared over multiple sites. It is quite common for the allocation of salaries to be reported artificially low on the property being sold, which is a significant piece of the underwriting process. Continue reading Are Sellers of Multi-family Investments Ready to Be Realistic on Their Value Expectations?

University of Michigan Student Housing Research Report 2017-18

Contributing Author: Sean Lyons

An in-depth analysis of the private student housing market at Clemson University conducted by Triad Real Estate Partners. Triad Real Estate Partners concentrates in private student housing and multi-family real estate brokerage. Triad Real Estate Partners’ research team compiles in-depth market research reports on leading Universities in the United States.

Total Enrollment: Up 2.87%

For the second consecutive fall, total enrollment at the University of Michigan’s flagship campus in Ann Arbor grew by more than a thousand, registering 1,284 more students than fall 2016, for a new University record of 46,002.  Undergraduate student enrollment increased 2.89%, slightly out pacing the 2.83% growth of graduate and professional students. Continue reading University of Michigan Student Housing Research Report 2017-18

Spotlight Interview: Robb Bollhoffer: Managing Principal, 29th Street Capital

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Robb Bollhoffer, along with his acquisition team have grown 29th Street Capital’s apartment portfolio to over 7,000 units in only a few years. Robb’s career in commercial real estate began as a Senior Acquisitions Analyst at Trizec Properties, then Managing Director at Strategic Capital Partners, and now Managing Director at 29th Street Capital. Robb and his team at 29th Street Capital focus on acquiring add-value multifamily assets in 10 high growth markets across the U.S. In addition to Robb’s impressive resume and his many successes he is an all around great guy on a personal and professional level. Search Apartments for Sale on LDCRE.

Continue reading Spotlight Interview: Robb Bollhoffer: Managing Principal, 29th Street Capital

Spotlight Interview: Lee Kiser: Principal/Managing Broker, Kiser Group / Principal KIG / Principal, KIG Analytics

39d9b1b-1Lee Kiser co-founded Kiser Group with his partner Estella Kiser, in 2005, and has developed the company into the most recognized brand in Chicagoland for mid-market multi-family commercial real estate brokerage. Kiser Group currently has 23 staff members.

 

LD: Congratulations on Kiser Group’s 10-year anniversary! Your team has a very impressive track record for selling apartments throughout the Greater Chicagoland area.  Can you tell us a little bit about how Kiser Group distinguishes itself from other commercial real estate brokerage firms?

LK: Kiser Group brokers are the most highly educated, best-trained agents in the market. Our brokers’ ability to lead their clients to solid investments is unrivaled. Another differentiator is that Kiser Group provides its agents with everything they need to help their clients, including the latest technology, research, and marketing tools. No other firm in Chicagoland knows multi-family investment like Kiser Group. Continue reading Spotlight Interview: Lee Kiser: Principal/Managing Broker, Kiser Group / Principal KIG / Principal, KIG Analytics

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