Multi Fam Pipelines
Wanted to start a discussion and gauge the rooms temperature on if anyone out there has interesting pipeline right now? I source deals for an LP, so I'm in the market meeting with new potential GPs, and the deals I'm seeing are terrible. Shit assets with tons of capex going for 4 caps in average locations.
Every bid process I've seen play out has 20+ offers, so it is a race to the bottom in terms of value. Seeing value-add deals trade for what will realistically be a 12%the market makes magic happen on exit cap rate.
I feel like this implies the capital markets do not view the apartment industry as risky anymore - like at all. Or, player in the market have changed from traditional real estate investors into traditional yield seeking allocators looking for alternatives to fixed income.
Anyone think similar or disagree?