What is a Multifamily Property?
Multifamily property has one foot in the residential sector and the other in commercial investment. It is the “hottest” type of commercial investment real estate property in 2014, due to the loss of homes during the Great Recession. Types of multifamily property include:
• Market Rate Property – comprise the vast majority of multi-family living, renting for “whatever the market will bear.”
• Student Housing – colleges have virtually exploded and cannot keep up with, or don’t wish to compete with, the needed capacity for housing.
• Senior Housing – focused on older, often retired, residents. Some have non-acute healthcare services.
• Affordable Housing – The Low Income Housing Tax Credit (LIHTC) program encourages the private market to invest in affordable rental housing.
Common Multifamily Needs and Goals
In multifamily housing, you are either a buyer or seller. Buyers should know:
• Multiple tenants reduce your risk of vacancy, and management companies exist at affordable rates,
• Acquiring these projects can be done in many ways, plus sheer economy of scale are appealing.
Sellers realize that:
• The right markets will allow rates and value to appreciate faster than expense, and
• Your “pay day” when you sell the project is often bigger.
How Can We Help You?
Buying, Owning and Selling any Investment Real Estate should be a rational process.
• What amount of equity (cash) do you have and what degree of risk are you willing to take?
• How much effort do you want to expend, versus using a property management firm?
• Who are the buyers and sellers already active in your targeted market(s)?
• What are the “metrics” of each property and how do they compare?
There are many more things to consider in Multifamily Investment, but commercial real estate principles that our Advisors have learned will be applied to your benefit. Talk to a SVN Advisor today.
If you are looking for space outside the northwest Florida markets, you can visit our corporate website. There, you will find all the multifamily property listings provided through SVN.