In your opinion, when do you think 2000 and later built multifamily product will become the 1960-1980 "value add" deals? And what do you imagine will happen to the 60-80's stuff? Redevelopment?
I've been thinking about getting into newer product for long term hold and are ok with lower returns on the assumption that in 30 years it would become the next value add type stuff. Could be totally wrong. Thoughts?
[{"id": "g0e2sms", "text": "Really depends on location and market.", "replies": [{"id": "g0e7swz", "text": "And level of value add.  In 2005-2007 we\u2019d buy late 90s class a/b stuff in southern markets and add some community amenities and do light kitchen refurbishments (new appliances, countertops, maybe new lighting.  One company that we used to manage some of those properties would also do value add on suburban class c stuff and rip stuff down to the studs before building back up.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g0eiubs", "text": "Since 2000 the only major home technological improvements have been in the telecommunications sector and LED lighting. We now have WiFi instead of wired connections. No more phone or cable lines. And a plethora of WiFi enabled devices (phones, laptops, TVs, Alexa, the \u201cInternet of Things\u201d). And LED lighting incorporated in appliances/building design.\n\nThere\u2019s really nothing to renovate at this point aside from putting a plastic cover over an old cable/Ethernet plug and putting in new appliances with LED lights.\n\nWe haven\u2019t had a major shift in housing construction like Plaster to Sheetrock, or the addition of Central Air Conditioning, or knob/Tube to Romex Wire - in a while. The next potential major shift would be Pex Tubing, Spray Foam insulation, solar panel installation, and \u201cIOT\u201d integration - but that\u2019s not anything that affects the aesthetics or usability for consumers.", "replies": [{"id": "g0em457", "text": "I do wonder how all the 5 story wood frame apartments IBC 2000 opened the door for are going to age in the longer term.", "replies": [{"id": "g0g2srx", "text": "I think the EIFS they built the skin out of on all these 5 story wraps are gonna look like shit.  Some of them are already beginning to look like shit.", "replies": [], "depth": 3}, {"id": "g0gphcp", "text": "That's literally all you see in my area.", "replies": [], "depth": 3}], "depth": 2}, {"id": "g0gt918", "text": "A lot of the construction improvements are for build efficiency like pex tube or spray foam, it really adds no value from the old way to do things if it\u2019s already existing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g0eq38y", "text": "Buildings usually get depreciated over 60 years +/-, depending on the type of build, size, and renovations.\n\nAt a certain point, it becomes more expensive to to renovate, where the renovation itself doesn't ad value to the property.\n\nI'd say, around 70 years is target for redevelopment, right in that 60-80 year window, that would be a 1950's build today in 2020, it can definitely happen sooner if the highest and best use changes.\n\nWhatever is being built now will likely be in place until the turn of the next century.", "replies": [{"id": "g0fhwhd", "text": "Great answer right here", "replies": [{"id": "g0guwjm", "text": "Thanks", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g0ev16a", "text": "Currently working on a value add deal where the owner built the property in 1990 and hasn't touched it since. Massive amounts of repairs. I would assume that there is already some 2000 construction that has become value add. I really think that this is just dependent on property management. My guess is you will see stuff less than 25 units become value add pretty soon and anything larger where there is built in management will take another decade or two", "replies": [], "depth": 1}]