Cap Rates

  • Western Union: Behind the Scenes of the Essex–BRE Deal

    Multifamily Executive goes behind the scenes to offer a comprehensive, revealing blow-by-blow account of the dance between Essex Realty Trust and BRE Properties. Deal junkies, this one's for you.

     
  • Cap-Rate Gap Between Older, Newer Properties Starts to Narrow

    Older property cap rates remain on a downward trend, suggesting sustained interest in ready-to-renovate properties, while newer asset cap rates are leveling off, suggesting a possible concern that recent deliveries could be more strongly affected by the growing supply wave.

     
  • Lender Interest Strong in Acq-Rehab Market

    Lenders continue to seek acquisition-rehab deals despite the growing appetite for new construction.

     
  • Niche Assets Climb the Rankings of 2014's Top 50 Owners

    Low-income, student housing, and military holdings are helping some companies make their mark on this year’s owners list.

     
  • Sky-High Prices for Land Force Developers to Get Creative

    As land prices soar, developers are being a bit more tactical in choosing where to place new projects.

     
  • Crowdfunding: The Future of Multifamily Investing?

    The core concepts of crowdfunding have been around for decades. But the improvements made in technology and social media have eased the process and widened the pool, providing more opportunities for sponsors and investors alike.

     
  • The Future of Apartment Cap Rates

    With construction growing, the cycle maturing, and interest rates rising, many observers are now wondering whether cap rates have bottomed and will head upward over the next few years.

     
  • At Your Service

    Lenders fought hard against stiff competition to make loans to affordable housing properties in 2013. Among those competitors, commercial banks once again crowd the top of affordable housing ­finance’s annual list of the biggest lenders.

     
  • Banks Battle for Development Deals, as LTCs Rise

    Competition among banks for construction loans is heating up for the strongest deals, as loan-to-cost ratios inch up to 80 percent

     
  • MAA and Colonial: A Tale of Two REITs

    While these neighborly REITs began life with similar footprints and trajectories, they took very different paths in the years ahead. And today, one owns the other, combining to form the industry’s second-largest REIT, eclipsed only by Equity Residential.

     
  • The Other Cheap Capital: Rethinking Hold Periods

    Multifamily portfolio owners could do well to investigate longer-term asset holds and the long-term, generational investors looking for more than an IRR.

     
  • Who's Buying? REITs May Be Net Sellers This Year

    One thing is sure: as the pricing cycle peaks, purchases become more selective, sales increase, and prices suffer, says guest columnist Luis Mejia, CoStar's head of multifamily research

     
  • Eat, Pray, Merge: An Inside Look at the Essex-BRE Deal

    A dinner with investors in November may have nudged BRE Properties to join forces with Essex Property Trust.

     
  • High Time: A Seller's Market?

    Jared Kushner hadn’t been running New York–based Kushner Cos. long when he noticed something problematic in early 2007: He could no longer justify buying apartments.

     
  • Fast Forward: 2014 Market Preview

    Bell Partners had a busy year on the investment front in 2013, buying more than 2,280 units as of early November. But as cap rates continue to drop across the nation, “We plan to be an aggressive seller and a very cautious buyer,” in 2014, Jon Bell says.

     
  • Condo Conversion Currency

    When Michael Reynolds looks back at the condominium scene in 2009, he’s happy just to call himself a survivor.

     
  • Taper Caper: Where Interest Rates are Heading for Multifamily Borrowers

    As the Federal Reserve tapers its rate-lowering bond purchases, what movement should borrowers expect ahead in the benchmark 10-year Treasury yield—and in turn long-term mortgage rates?

     
  • Cap Rate Outlook: Inflation vs. Investor Demand

    Cap rates often rise when interest rates rise, but that may not be the case in many markets in 2014.

     
  • Point: Why 2014 Will Be a Seller’s Market

    As single-property transactions and cap rates head to near-record levels, interest rates perk up, and inflation fears hover, some industry analysts (and even a few executives) have started to ask themselves—Is now the time to think about selling?

     
  • Counterpoint: Why 2014 Will Be a Holder's Market

    Just because it seems like cap rates can’t go down any farther, and many formerly favorable markets will be flooded with supply, that doesn’t mean everyone wants to sell.