Polger: “Our current investment thesis is that as a direct result of this dichotomy, there is much more room for measurable rent growth with the older properties, especially after they are improved and modern amenities are added.”
SAN DIEGO—There is a significant difference between what a new apartment project costs to build or buy today and the pricing on 1970s and 1980s vintage projects, which can typically be acquired for well below replacement costs, Pathfinder Partners LLC's senior managing director Lorne Polger tells GlobeSt.com. As we recently reported, the San Diego-based firm specializing in opportunistic real estate investments has acquired two Phoenix-area multifamily communities totaling 300 units for a combined total of $34.1 million. Polger said the acquisitions, both build in the 1980s, represent value-add opportunities, with room for rent growth.
We spoke exclusively with Polger about the apartment-building boom of the '70s and '80s, the appeal of those value-add multifamily properties and what to look for when acquiring these types of communities.
GlobeSt.com: A number of multifamily properties were built in the '70s and '80s. Why are these an attractive investment now?
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
