With all of the new apartment supply hitting the market, it’s no surprise investors not in the merchant building game are turning tovalue-add rehab opportunities in multifamily. In fact, repositioning is so hot in the disposition space, forward pricing on class B value-add is practically approaching class A apartment real estate, with sub-five cap rates popping in major markets across the country.
Underwritten into these deals are valuation increases that reach 6 and 6.5 resale cap rates, sometimes within three years. Expectations like that make asset management perhaps the most critical job function within multifamily. Not only are asset managers assigned with keeping revenue and NOI steady when rents slow, they will also be tasked with identifying the most profitable rehab plays on value-add deals from the outset.
“Asset management is really the first line in any sort of value-add situation,” says Bonaventure Realty Group’s Elizabeth Karl. “From a big picture standpoint of evaluating the feasibility of a deal to taking an entire project through the whole entitlement process requires the balance of a lot of moving parts. Everything can look great on paper but at the end of the day it comes down to execution.”
At the Maximize: 2014 Multifamily Asset Management Conference (Maximize), we’ll look in depth in balancing these moving parts—. In addition to sessions on water and waste measurement, management and revenue, we’ll take a look at the top ten strategies for expense management that move the bottom-line. It’s basically the asset manager download of the biggest lifts that can be gained in the course of a multi-year holding period.
We know you can sketch out kitchen and bath upgrades in your sleep, so we invite you to join us for a deep dive into future initiatives that make sense for your portfolio. We’ll factor in time, hours, change management, and the entire financial impact of strategies to move the needle. Between sub fives in and 6.5s out, there’s a lot of asset management needle to move.
Register today to join us for Maximize, October 13-15 at the Omni Amelia Island Plantation Resort in Florida. We look forward to seeing you there.