FAIRFAX, VA—Value-add multifamily deals are still feasible forbuyers even as pricing rises to $200,000 a unit in some cases. Sosays ARA's Drew White who has closed two dealshere totaling close to $100 million in recent days and has another$80 million across two deals rolling out in thenext 30 days in Northern Virginia.
"There is a continued high interest in value-add opportunities,especially in Northern Virginia—despite the large pipeline of newClass A product," White says.
While Class B rents are stagnating and vacancies inching up forthis asset class, the rent differential between Class B and Classis not inconsequential – and it is enough to make the numbers workfor a rehab of a Class B property, White says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
