Where are all the 50+ unit multi-family deals?

[Chris Winterhalter]

Where are all the 50+ unit multi-family deals? Can someone transport me back to 2010? I've been actively trying to get into 1-2 deals since October of last year however inventory has been extremely tight. I've made strong offers on several buildings, 69 units, 73 units, 96 units etc etc. however haven't been able to lock down the deals. I'm looking at properties on a regular basis however most of the inventory is overpriced. My investors have been calling me asking me when they can put their money to work (not the worst problem to have). I've been networking with other big owner/operators in town and they are relaying the same thing. Multi-family is hot and the deals are scarce. Obviously I'm only giving my experience from one city (Cincinnati) however I'm curious if other multi-family investors have been experiencing the same thing. It's really interesting to see what the cycle has done since 2008.

Are there any investors out there with an abundance of deals still (50+ units)?

[Giovanni Isaksen]

Out in Seattle cap rates are in the high fours and investors are competing with institutional money as well as overseas investors who snap deals up with all cash. There still are small (< 50 units) '60s vintage properties scattered around that have room with value add but it's a hot market.

Portland has higher caps in the suburbs but smaller institutions are there too. You can still find some decent deals there if you are a long term holder and you stay under 100 units but that will make property management more expensive.

You can go north from Seattle and caps are a little better but if you go too far north you begin to compete with Canadian investors coming south and will bid up anything with a broker's six cap because it's twice what they can get in Vancouver where caps are in the threes.

In Seattle prices have crossed the Line of Doom (existing properties selling above replacement cost) and we're being pitched a lot of development deals. That typically means the apartment investment cycle is getting peaky but just when you think they'll be no renters to absorb the new supply Amazon announces another million sf of office buildings they're about to break ground on.

The saving grace is low interest rates. Ben/Janet say please buy assets so if you lock a property up with fixed financing (minimum 10 year fixed) and plan to hold through at least a full cycle you'll do just fine. If you're flipping with hard money you could get caught without a chair when the music stops