Specializing in investment property since 1975. Apartment Building Sales.

CURRENT COMMENTS - FALL 2020

Fall 2020, feels more like winter. The market has been good despite the Covid madness. Sales have been happening on a regular basis and prices have ranged from $120,000 per unit t o the mid $200,000's per unit. Pricing depends on location, unit mix, and interior improvements, for the most part. Construction type still plays a significant roll in pricing as does parking, balconies, elevator and underground parking.

Cap rates have been in the range of 3 to 5.5%. 3 caps for buildings with easily identifiable upside, and higher caps once renovations have occurred resulting in top market rents. Most buildings with long term owners are not at market rents, as after a few years owners are happy with no turn over and the rents remain the same. Remember Alberta does not have rent controls so if you maintain the building well or do a quality value-add in decorating then you can expect to get much better rents than before.

The biggest challenge is financing. People who have not been involved in commercial underwriting do not have a clue as to how it works and this includes bankers and residential brokers. So once again find a good location with good structural attributes and spend some money for a great long term investment. And please, please, please, talk to someone who knows what the hell they are doing when it comes to this business.