(To read more on the multifamily market, click here.)
WASHINGTON, DC-Investors continue to focus on opportunities inclass B multifamily units in the area, drawn by low vacancy ratesand a growing spread differential in rents with class A facilities,according to the latest research by Delta Associates.
Vice president Grant Montgomery tells GlobeSt.com that a trendamong investors is to acquire class B and class C units, renovateand reposition them--even if only slightly--and then raise rents.It is a typical strategy of course, but is particularly well suitedto the DC market's current environment. "Even after the new ownersraise rents it is still seen as a bargain by renters," he 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.
