News
SIMON SELLS
April 25, 2011
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| Cushman & Wakefield's Simon Butler tells us his Boston multifamily investment sales team, which includes Biria St. John,Michael Byrne, John McLaughlin, and the pretty sweet view that we snapped above, has been busy throughout the downturn. But what a difference a recovery makes. In September '09, he sold the Avalon at Faxon Park in Quincy for $159k/unit, which amounted to a 6.8% cap rate. In January, he sold the Reserve at Marina Bay in Quincy for $256/unit, a 4.9% cap rate. Rents are rising, confidence is returning, and institutional buyers have come back to the market. He tells us that buyers are willing to accept lower yields, 4% to 5% now compared to 7% for Class-A suburban multifamily in '09. |
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| As the newest member of the team, John's seeing a new trend in ?11. Land is selling again, as developers plan to build. They're zeroing in on urban locations near downtowns and the better bedroom suburbs. New buyers coming into the Boston market include: REITs like UDR from Denver, pension funds like CBRE Investors, and new private players like Dawn Homes of Albany and Acumen Real Estate from Miami. Pre-recession, buyers werelooking throughout the region. Today, buyers are more urban focused, and some like Equity Residential are shedding apartments in outlying locations such as Manchester, NH and buying in Boston. |
