As the economy continues to be hot and investors start seeing the policies put in place by the new administration, the question on everyone’s mind is whether investment in multi-family properties in Eugene will continue to grow in 2017. While lenders have become a bit more conservative in funding new developments, that will not “seriously dampen the enthusiasm among investors for apartment properties”, according to the experts at Globest.com.
“There are a lot of reasons to be optimistic about transactional velocity,” Steve Rachman, regional manager/managing broker of Marcus & Millichap’s Chicago O’Hare office, tells GlobeSt.com. He notes that:
…a lot of money is still sitting on the sidelines
And with healthy rent growth forecast for 2017, investors should be willing to place a lot of bets on the apartment sector, even if it means having to settle for compressed yields.
Rachman puts it this way:
We’re seeing multiple bids on everything we list
Rachman’s office specializes in class C properties, and that portion of the market is one place private investors can go to secure greater cash flow. Properties in the city may come with a cap rate of around 4%, but many in solidly performing suburban areas such as Oak Lawn, Glen Ellyn or River Forest are in the range of 6% and even close to 7%.
So the answer is simple: multi-family properties in Eugene will continue to be an excellent investment this year.
It’s true: across the country, and Eugene is no exception, investors continue to see 2017 as a year of opportunity. René Nelson is your local multifamily expert—call her at (503) 912-6583, or visit eugene-commercial.com to get started.