Besen & Associates, Inc.
Name: Shallini Mehra
Title: Associate Broker
Company Name: Besen & Associates, Inc.
Years in real estate: 15
What real estate associations or organizations are you a member of? YMWREA and CHIP.
What trends are you seeing so far this year? With higher interest rates and banks lending at lower LTVs, investors are no longer buying 2-4% cap-rate deals and relying only upon asset appreciation. There needs to be a real value-add component or a return that is north of 6%. Many investors are seeking out stable, cash flowing properties in other states which yield 7-9%. On the development side, investors are more interested in ground lease and JV opportunities with land owners. For value-add, investors still love buildings under long-term ownership as well as buildings with preferential rents. On a positive note, the quality of apartment renovations continues to improve in all neighborhoods, decreasing the gap between 1st, 2nd and 3rd tier markets.
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