Is apartment market near its bottom? OCRegister (blog)
Webster: Currently, buyers expect to buy buildings with a Capitalization Rate of approximately 7%, which are looked at as good investments for today’s market and are projected to stay the same for the next 12 months.
Thornton: In some of the inland areas of Orange County, we’re seeing cash flows of 7% to 10%, and in some cases even higher. This is the time for investors to ‘lock in’ their financial future. On smaller buildings like four-plexes, you can get 30-year fixed rates in the low 5% range. Someday, we’re going to look back and wish we had bought the whole neighborhood.
Us: How has the housing slump impacted demand, sales and pricing for small apartment buildings?
