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Small Investors Parking Money in Apartments

SEATTLE, WA-Asking prices are beginning to drop and individuals are looking for less volatile alternatives to the securities markets. The convergence is keeping deal flow moving, says Paul Mickley of Paragon Real Estate Advisors.

By Janet Parker | Updated on January 18, 2002

SEATTLE, WA-”Individuals are buying apartment buildings for current income or as a place to park conservative money as an alternative to being in the stock market,” says Paul Mickley. “Some are looking for cash flow, and others are putting up large down payments just looking for a somewhere to put cash.”

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.”

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