Investors See Opportunity for Class-B Multifamily Assets – NREI

Investors See Opportunity for Class-B Multifamily Assets – NREI

Apartment rents continue to rise across the country. National Real Estate Investor recently reported a significant trend with private capital investors chasing value-add projects in suburban markets. Investors are able to pay significantly less for class-B and class-C apartment properties relative to income compared to class-A property prices. The cap rates investors accept when they buy class- B and C properties are now about 220 basis points higher than cap rates they accept for class-A assets.

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