Alexanian: The fundamentals of demographics, strong city growth and future commitments, low crime rates, good schools and job growth and affordability gap to own all make for a stable investment landscape. The biggest carrot here is the upside in rents. This is a non-rent controlled environment coupled with recent uptick in rental trends across the board, and as a result, investors are able to realize value.

GlobeSt.com: What is investor demand like? You recently closed a $30M multifamily deal. What was demand like for that asset, and was it indicative of the kind of interest that you are seeing in this market? Please also include the types of investors that are active in this market and how this investor pool is changing.

Alexanian: In closing over 2,500 units in this market, our team, headed by Levon Alexanian, has spotted an interesting trend lately. While the local investors usually bid up deals in the $5 million to $10 million range that typically get 8-10 offers, we were excited seeing them willing to step up into the threshold of the bigger price points. In our most recent assignment, the BurGlen 100-unit portfolio that just closed at $32 million, we saw a wide spectrum of interest, from smaller local investors to institutional. Because the deal was comprised of seven separate buildings, it required a different management strategy to move the ball forward. We were very pleased to also represent the best-profiled buyer, who not only had recent proven experience in this market, but also was very flexible in their terms. The seller was already in escrow on a $57 million shopping center, a complex transaction, which required the buyer to respond accordingly.

Regardless of the investor profile, most are willing to give leverage for opportunity. Almost nonexistent vacancy factors and strong employment base contribute to the stability of investing in these sought after markets.

GlobeSt.com: How has pricing changed in this market over the last few years, and where is it heading?

Alexanian: The cheap cost of borrowing capital is still helping prices ladder up to some deals trading at sub 4% cap rates. I'm negotiating a deal now in the sub 3% cap range. The obvious conclusion is that rent growth has to stabilize in the near future. Until then, investors are confident in turning profits in deep upside pockets. We also are seeing across the investor profile most are willing to give leverage for opportunity in this market because of scarcity of product and stability of investing in this market.

The biggest deal flow modifier is the Fed, as rates adjust so will interest and conservativeness in acquisitions.

GlobeSt.com: These markets have also seen a lot of new developments. How do those projects affect pricing and existing assets? Is new development a challenge for investors?

Alexanian: So far the new development has lent an overall positive flavor both to the city and to the older vintage supply. The existing product lends a more affordable option than the more luxury styled new product, which is great considering the huge influx of migrating tenant base. The only concern that we hear from owners is the quickness of adding the 5,000-plus units and its rent sustainability to economic fluctuations, causing an over abundance of supply. For now, most are leased up and retailers are taking notice. With the likes of Shake Shack, Bloomingdales, the nation's largest Ikea, catering to the disposable incomes of the solid tenant base.