Cap rates are still too low in the Seattle mutlifamily market.
Seattle multifamily property owners are still not coming to grips with slipping prices in their markets. While we have seen some rise in cap rates over 2-3 years ago, investors now are wanting better than the 5-7% that many sellers are offering.
Articles I am reading are pointing to investors wanting 8-11% cap rates on B and C class properties, so a lot of Seattle multifamily property owners are going to have to cool their heels for a while if they want to sell. What they are not seeing is that the mutlifamily real estate market is going national. Buyers in Seattle with money to invest do not have to put up with low local rates of returns. Instead they can purchase properties all across the country, have them professionally managed and still get a great returns.
We keep looking for good properties to make offers on, but some of these sellers still have their heads in the clouds about what their ‘investments’ are really worth in today’s real estate market.
Do you have a mutlifamily property you need to sell in the greater Seattle area? We are looking for value priced multifamily properties right now, so if you need to sell, we can make you an offer!Tweet