On Friday, had a funny discussion with our largest investor regarding the value of parking spaces. His joke was that, when I’ve got loads of parking, I tell him how valuable parking is, and when I’m under-parked, I start talking about Uber. I’m not admitting that’s true, but I did tell him that I think
Today, we’re closing on a little fourplex deal in a neighborhood we really like. It’s a roughly $1.1MM all-in project, way too small on its own to be worth our time. However, it’s near a bunch of other stuff we’re renovating, it’s a simple project (no reconfiguration of the units), and we like the area
We’ve now reached the point in the cycle where brokers describe their over-priced apartment deals as “condo conversion opportunities”. Why would a broker do this? Well, if your client demands a price so high that no buyer could actually achieve any kind of yield on their investment, you don’t really have many options. But, in all
As we seek to deploy our current pool of capital at a time of generally high prices, we are running up against the issue of replacement cost. Here’s the problem: As a repositioner, you don’t really want to be in the position of spending more to buy and renovate a building than it would cost
A lot of people are wondering whether it’s already too late in the cycle to buy. After all, prices have bounced back up off the floor of 2009-10. For context: I sold a bunch of totally renovated buildings in 2011-12 for 10-10.5x the rents. I would get 11x all day right now, and possibly more.