Foreign Investors Fancy U.S. Multi-Family Properties
Even in the wake of a real estate investment downturn, multi-family properties are still popular with foreign investors. This is especially true for Canadian buyers, who make up the majority of foreign investors in the U.S. market. CBRE reports that foreign capital has contributed $50.1 billion to the multi-family market since 2014, despite rising construction and labor costs over that same period. Most foreign buyers tend to focus on class-A properties, paying an average of $43 million per community. They are willing to spend more on multi-family properties because they value the lower long-term volatility and stable rates of return of the market, which relies on the income of hundreds of tenants over time vs. single tenant occupancy that tends to dominate the retail or corporate spaces. Read more about it at National Real Estate Investor and Pensions and Investments online.
Crowdsourcing platforms have also made investing in multi-family properties easier, more affordable and accessible at a time when the market is increasingly attracting young and old tenants alike - a trend that is likely to continue for years to come as demographics and housing costs shift.
CalTier Realty offers a Reg A+ Tier II fund to non-accredited and accredited partners across a portfolio of select, quality multi-family properties for value addition and reposition. We also be launching a crowdsourcing option in the near future. To learn more about this and our investment strategy on the West Coast and in high-growth areas, please contact us.