Why Competition Is Rising in Non-Core Markets

RADCO Companies recently acquired its first Orlando area multifamily asset, Parks at Sutton Lake.

ORLANDO—Competition is starting to heat up in non-core markets but there are still many deals to be made with 7%-plus cap rates. Investors can purchase an asset in a secondary market at a 7% to 8% cap rate, invest in renovations, actively push to bring it to full occupancy and sell for a nice profit as the market gets frothier.

“There is competition in the secondary and tertiary markets, but we can remain competitive within our buying criteria in these areas, which is harder for us in ‘core’ markets,” Francis Greenburger, CEO and founder of Time Equities, tells GlobeSt.com. “We’re not seeing an increase in pricing. I anticipate that may change after we continue acquiring in these submarkets.”