Record setting apartment deal

Record setting apartment deal
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

The apartment market, at least for investors, appears to keep on chugging.  High home prices are forcing more people to rent.  Rents have been going up and apartments as an investment vehicle begin to look more and more attractive.  Earlier, I blogged about apartment rents continuing to rise in the valley.

Well it didn't stop there.  Check out this article from today's Arizona Republic.  A record breaking deal took place where 12 Phoenix area apartment complexes sold for a record combined $427.5 million dollars!  In total, we are talking about 5178 units for an average price of $82,651.  The new owners are planning to completely rehab the majority of these class B and C units.

Wow, average rents in these units are $800.  Apparently the 1% rule is alive and well when applied on a huge scale!

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
http://www.homesphx.com

 

 
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4 Comments on Record setting apartment deal

Wow! That's an incredible amount of money. My daughter's working for a property management company in Charlottesville this summer and she's leasing apartments everyday. The rental market is strong there. Thanks for the update Kaushik!

06/05/2007 06:49 AM by Debbie Malone, Lynchburg, Smith Mountain Lake, Real Estate Agent (RE/MAX 1st Olympic, ABR, e-PRO, ASP)

When an average mortgage is about $1700-$1800 per month in todays market. $800 for rent starts to sound pretty inexpensive.Not everone has the means to buy.

06/05/2007 12:52 PM by Keith Smolik (Security Mortgage Coproration)

Kaushik, the only new appartments that I have seen go up around here have been for low income renters, othere than that all of the construction has been either Condo's or Homes.

06/05/2007 06:44 PM by George Souto (McCue Mortgage Co.)

The 1% may fall on this deal depending on how much they choose to spend on each unit for the rehabs.  But you are right.  When you buy more units you should be getting a better cap rate.  Should be.

06/05/2007 06:48 PM by Chris Lengquist, RIPS (Keller Williams Realty)

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Real Estate Agent: Kaushik Sirkar (Call Realty, Inc.)
Kaushik Sirkar
Chandler, AZ
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Call Realty, Inc.

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