As for areas attracting the interest of small investors, Mickley says the close-in Seattle areas -- Capitol Hill, Queen Anne, Fremont -- are especially hot. And, classic brick buildings are in favor. Apartments like the 20-unit Daphne at 433 13th Ave. E on Capitol Hill. Richard Belden of Paragon represented the buyer in the $2.9 million 1031 exchange that closed at the end of 2001.
Mickely, a broker/partner with Seattle-based Paragon Real Estate Advisors, tells GlobeSt that while the velocity of transactions has slowed, deals are still being struck—as long as the numbers approach reality. "Buyers are approaching things more conservatively now. In the past they where they would look at numbers in terms of market rents they're not looking at real, current numbers."
"The good news," says Mickley, "is that sellers are getting more realistic with their asking prices and there are more of them now that are willing to part with their properties. And on current inventories we're seeing more, and larger, price reductions than we were seeing a year ago."
The reality of the numbers appears to be the key, and Mickley quips, "Numbers have come down -- like gross and multipliers. It's a slower market, but things are still getting done, and properties are selling."
The recent up-tick in interest rates haven't deeply impacted deal-flow according to Mickley. Although, brokers will most certainly welcome any new rate cuts, such as those the Fed has been hinting around the past few days.
The trick to rates, however, appears to be in finding long-term money. With rates at their lowest levels in years, fixed-rate loans require a nimble borrower capable of jumping through multiple hoops.
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