News
MULTIFAMILY MONDAY: Well-Stocked Southern Waters
March 28, 2011
| Distress acquisition opportunities abound, CBRE multifamily housing group managing director Kyle Draeger tells us. Of course, for Bostonians seeking the most fertile fishing grounds, Kyle?s advice is: go south, young investor. |
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| Last month, Kyle?s group closed on a 300-unit rental apartment complex in Ft. Myers, Fla. paying in the high $20Ms with an LTV of 75%. He liked the deal because it had a strong sponsor and the property, like so many in Florida, has been distressed for a few years. As a result, Kyle says, that market is seeing significant price deterioration. A unit valued at $200k four years ago, might sell for $75k now. Since the end of last year, Florida has been the place for bargain hunting; a year earlier it was Phoenix. The trick to these deals is to know when to sell, Kyle tells us. Boston, meanwhile, has had ?little if any? distress close to the city, he says. To glean more of Kyle?s insights, hear him speak atBisnow?s Capital Markets event, March 31. This Thursday! (Sign up here.) |
