Investors have been swept along in the ongoing rush to get into alternative investments. The need for returns, low yields in traditional markets like fixed income, and high prices in equities have pushed large amounts of capital into alternative investments, including multifamily real estate. Attractive value growth and cashflows flush with rising rents have compressed cap rates, dropping into the 3% to 4% range.
MZ Capital partners has taken a different path. Instead of being squeezed in with many other bidders for assets, founder and managing principal Michael H. Zaransky explains how the firm has pushed a developer role. Picking the right demographics and locations, they can develop high quality rental housing to satisfy a large segment of consumers.
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