Sunday, April 24, 2005

Raleigh real estate is on fire.

Raleigh real estate is on fire. Especially multi-family residential. Investors can't seem to get enough and cash flow is optional. Capitalization rates are as low as 2-4% on apartments in good shape. Inside the beltline (ITB) is even more expensive as investors "land bank" properties, apparently for redevelopment or condo-conversions.

Recently, a listing of a 10 unit apartment building by a colleague of mine generated three different inquiries from sunny California!

The combination of a soft stock market, rising interest rates and a positive jobs outlook in NC has investors and developers betting on a strong rental market for years to come.

No comments: