Value-Add MF
Can't make sense of this. A value-add property that was sold in March 2021 just relisted for $10MM above what it sold for albeit nothing material has changed. Has anyone else seen anything like this?
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$10M is a big jump but happens all the time. https://www.investopedia.com/terms/g/greaterfooltheory.asp
If the units that have turned over are much higher rent and it’s a large deal, that’s not insanity
Depends how big the deal was back in March. Value Add MF is very overheated right now. Cap rates dipping into the 2s in good locations.
Perhaps planning and zoning changed. No way that just rents went up and cause this jump. They can probably just build way higher now or something
Nothing has changed about this deal since it sold in March. Market rents are up but loss to lease increased dramatically.
And we're supposed to take your word for it?
I don't understand the concept of saying "this thing no one could ever believe would ever happen, just happened!" and then refusing to divulge any info. There is no edge to grab on to for discussion or debate if you're just going to blithely insist that "nothing" has changed and that we have to take your word for it. Of course that markup is absurd in that case - but far more likely is that something really material did change and you didn't pick up on it
$10M increase, but what is the overall price? Cap rate compression has caused several of our properties values to increase more than that.
Doesn’t sound crazy. Lease trade outs have been double digits (blended new and renewal) all summer. Investors have been getting more aggressive on future growth projections as well as dropping exit caps. When noi is improving every single month and the capital markets are seeing cap rates compress almost monthly…makes sense you’d see a $10M pop.
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