The multifamily transactional marketplace is coming back to life as a result of positive things beginning to happen. Sellers are realizing it’s not 2022 anymore and their properties won’t sell at a sub-3% cap rate. Pricing is coming down. While interest rates are high, they have come down in the recent past. For 1Q2024, rates dropped 56 basis points, the largest quarterly drop since 3Q2010. But annually, rates have increased by 246 basis points (ouch!). NOI is up, driving positive underwriting. And but for a few exceptions, the changes are generally uniform across the country. So, it’s beginning to feel a bit like a buyer’s market. Let’s hope it continues.

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.