404: People Paid Way Too Much For Multifamily Properties

Over the last five years, overly exuberant investors vastly overpaid for multifamily properties. Instead of basing their pricing on in-place property performance, they based their pricing on overly aggressive proformas. In many cases, these proformas didn’t materialize because of increased renovation costs and declining rents. Because of these factors plus increased borrowing costs, we’re starting to see distress in the marketplace. Bill Hamm, Co-founder of Broadwell Property Group, was smart enough to sell off his portfolio a couple years ago when the market was incredibly frothy. Bill is now looking to jump back into the market to acquire B Class core properties in great locations in major metro markets with 5 – 7 year holds.