How to search for Multifamily properties above $20 million dollars
I have a client that’s looking to purchase a Multifamily property in the $20 million dollar range and preferably above 175 units. Said client is doing a 1031 exchange so time is of the essence. What is the best way of finding this deal?
[{"id": "i1qpf3b", "text": "Find sunbelt mf property that hasn\u2019t sold in 5+ years", "replies": [{"id": "i1uwivq", "text": "Good luck. I am seeing markets in sunbelt where basically every single property traded", "replies": [], "depth": 2}], "depth": 1}, {"id": "i1qrf6c", "text": "Sadly, trying to exchange into the crazy MF market at that size is difficult at best. The money they may be saving in taxes could be lost just in the yield premium they need to pay to enter the MF market. \n\nStart dialing for dollars with brokers and work your relationships, in the hopes of connecting with an off-market or pre-market opportunity.. perhaps be prepared with proof of down leg funds via an accomodator's pof letter that covers the entire equity check.\n\nIt may not matter though. It's such a seller's market that even deals that haven't gone to full market are commanding onerous terms..shortened closing time frames, pre-approved PSA at the offer submission, crazy amounts of hard EMD funds etc..\n\nMF sales brokers are having field day while they can. And there's tons of other 1031 dollars that just sold at the top, chasing the same deals too.", "replies": [], "depth": 1}, {"id": "i1qtz1f", "text": "The primary problem with 1031s... the rush on time leads to overpaying for the replacement asset...\n\nAre they fixed on MF or open to a wider range or replacement properties?", "replies": [], "depth": 1}, {"id": "i1qxilq", "text": "Here:\n\n20mm+\n\n175 units +\n\n[https://www.loopnet.com/search/apartment-buildings/usa/for-sale/?sk=9705147e671d97a47968ebd6ef6f3551](https://www.loopnet.com/search/apartment-buildings/usa/for-sale/?sk=9705147e671d97a47968ebd6ef6f3551)\n\n&amp;#x200B;\n\nContact the brokers with the ones you like and ask if the seller will cooperate with a 1031", "replies": [{"id": "i1r2021", "text": "Why do some brokers/sellers not want to deal w 1031s?", "replies": [{"id": "i1r2mpl", "text": "Often the purchaser has a finance contingency and often they are stretching on the purchase (not well capitalised) It\u2019s a weird spot that attracts non-institutional capital.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i1qzcw2", "text": "What area are you looking for?", "replies": [], "depth": 1}, {"id": "i1r3c9v", "text": "For $115k per unit, you\u2019re going to be VERY limited in what you can afford to buy. 175 units is large enough to attract interest from the true big dogs in commercial-size multifamily (I have spent my whole career working for these guys \u2014 and while I am not on the acquisition side anymore, my company is famously aggressive).\n\nMost of what we buy tends to be in the $200k per unit  or higher range. Yes, we buy in some high growth southeastern markets\u2026 but most of our transactions are in the Midwest, and what I said is still true.\n\nMore than likely you\u2019ll have to drop your unit count or go pretty far off of the beaten path to find your deal. Places like Evansville, IN or Springfield, IL or Frostburg, MD. Aka the middle of nowhere, for all intents and purposes.\n\nI don\u2019t mean to be callous here, but $115k/unit just won\u2019t cut it for institutional product in growth markets. If I were your client, I\u2019d try to buy 120 units on a 1031. That\u2019s small enough that it won\u2019t attract so much interest from big guys. Of course\u2026 you\u2019re not going to be able to drop your price, even though you\u2019re buying less, in todays market.", "replies": [], "depth": 1}, {"id": "i1r8isn", "text": "Serious question to your question and I don\u2019t mean to be rude\u2026but are you not subscribed to any multiple listing services? At minimum on the local level/realtor association? LoopNet? CoStar? Crexi?", "replies": [], "depth": 1}, {"id": "i1raqzq", "text": "We\u2019ve got 2 going to market in Lafayette la. 17m total.  How much debt do you need to replace?  Stable, all updated.  B area, B assets.  Love to get you in before the MM broker takes it to market.", "replies": [], "depth": 1}, {"id": "i1scrs3", "text": "What state?", "replies": [], "depth": 1}, {"id": "i1szxbx", "text": "A commercial realtor should be able to find any listing in that range.  Additionally, if you go to contact companies that do a lot of 1031 exchanges, they may have clients looking to sell something like that, not yet on the market, and exchange into an even more expensive property for themselves.", "replies": [], "depth": 1}, {"id": "i1zqx0x", "text": "PMd", "replies": [], "depth": 1}]