FAIRFAX, VA—Value-add multifamily deals are still feasible for buyers even as pricing rises to $200,000 a unit in some cases. So says ARA's Drew White who has closed two deals here totaling close to $100 million in recent days and has another $80 million across two deals rolling out in the next 30 days in Northern Virginia.
"There is a continued high interest in value-add opportunities, especially in Northern Virginia—despite the large pipeline of new Class A product," White says.
While Class B rents are stagnating and vacancies inching up for this asset class, the rent differential between Class B and Class is not inconsequential – and it is enough to make the numbers work for a rehab of a Class B property, White says.
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