According to a recent article in the Commercial Investment Real Estate Magazine, Institutional Apartment Investors nationwide are “on the hunt” for properties to purchase. They are moving beyond the highly sought after “Trophy Properties” and are now looking at secondary markets and class “B” and “C” buildings.
The article goes on to say that the main driving force behind this change in attitudes toward class “B” & “C” buildings is the search for higher yields. Private investors, equity funds and some institutional investors are frustrated with the lower yields on the “Trophy Properties” in larger metropolitan markets.
This change in Investors attitudes has resulted in an increased amount of interest from larger, out of state investors, seeking Multi-Family properties in our market. In addition, the recent national fascination with western North Dakota and the Bakken oil development, along with our State’s envious fiscal condition, adds even more interest to the attraction in North Dakota investment properties.
Demand for properties is also driving multifamily development in the Fargo- West Fargo-Moorhead area. Although we have experienced an increase in construction of new multi-family properties in the area, vacancy rates are remaining low in most areas of the market. This healthy trend makes available properties highly sought after, and as a result, values are on the increase.
If you, or someone you know, may have been considering the sale of a multi-family property, now may be an excellent time to contact me for an evaluation of the property. We have the Buyers who are looking to invest in the area.