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Multifamily
Division
Lloyd Kaipainen PC
Market Pulse
Autumn 2014
It’s been an interesting summer…some segments of the multifamily market were extremely
quiet, while others are sizzling as the big boys are buying like there is no tomorrow—a fourfold
increase since 1st quarter! The number of multifamily listings in MLS seems to be leveling off, with
about six months of inventory, however the historical inventory level for multifamily is typically three
to four months. The average price per unit of multifamily properties across the board seems to have
stabilized around $45K a door and CAP rates of 7 and 8 are in line for historical returns for B class
properties. Investors have raised the bar in regards to their return on investment, demanding higher
returns. Buildings that are selling at a 5 or 6 CAP are owner occupiers, owner carries or Class A
buildings. The problem is there are few 9 and 10 CAP buildings out there (other than D Class) and if
you do find a D Class, you will need very strong management to maintain that return.
So what do the big players see coming? Higher interest rates? A stock market crash? These
events will typically send lots of money chasing safer investments. The stock market continues to be
the favorite of the current easy money Fed policy, but at some point, the stock market bubble will
burst. And when it does, the investors will come back to sticks and bricks. Wish to lock in your profits?
Need an evaluation? Don’t wait! Call us now!
Multifamily Activity 2013/2014
450
405 387
Number of Listings
400
350
300
250
200
381
364
347
336
344 356
354 361
325
266
192
Current Active
Listings
Total Sold
150
100
50
Under Contract
0
Graph depicts all Multifamily listings, sold and under contract in the MLS System.
Data compiled by Lloyd and Lois Kaipainen. All rights Reserved - ©2014
$50,000
$49,000
$48,000
$47,000
$46,000
$45,000
$44,000
$43,000
$42,000
$41,000
$40,000
Average Price Per Multifamily Unit
$48,540
$46,529
$45,799
$45,700
$43,834
10-99U
$42,988
$41,990
$41,460
4th QTR 13
1st QTR 14
3 to 4U
2nd QTR 14
3rd QTR 14
Source: 3 to 4 units – MLS; 10 to 99 units – Costar; Data compiled by Lloyd and Lois Kaipainen.
All rights Reserved - ©2014
Please call Lloyd or Lois at 602-265-6617
or visit us on the Web at www.phxazapts.com.
SJ Fowler Real Estate, 2200 E Camelback Rd #110, Phoenix AZ 85016
Office: 602-265-6617 Fax: 877-504-2013
Email: [email protected]
Multifamily
Division
Lloyd Kaipainen PC
Properties for Sale
24 Units (11 commercial and 13 residential) 8 Parcels/2.7 Acres Mixed Use
th
Assemblage at 16 Street/Palm Ln, Great cash flow & future development
potential!!! $1,147,500 Other adjacent properties maybe available as well!
Papago View Apartments - 20
Coolidge Apartments Units Phoenix – 4 Two bed
12 Units Phoenix – 11 Two
units and 16 ones – always full!
bed units and a studio –
Onsite pool and laundry and
most with carports! $695K
plenty of parking! Possible
Seller Carry! $995K
8 Units/2 fourplexes Phoenix –
4 Units Phoenix – Three 2
Great Unit Mix with Six 3 bed/2
bed units and a 3 bed/2
bath units and two Studios.
bath with garages! Lots of
2005 Custom Block Built tile and on site laundry!
$209K each
$229K
 10 Units Phoenix – Mix of ones and twos – possibility to assume loan! $329K
 4 Units Chandler – All remodeled with slab granite countertops and tile floors! - $179K
 Portfolio of 2000 Built 4 & 5 Bedroom, Single Family homes – great return! $498K
 Portfolio of Condos – Mesa – call or email for details!
Lloyd & Lois’s 2014 Closed Sales
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DON’T
FORGET:
18 Units – 602 E Townley, Phoenix – Short Sale - $400,000/$25,000 per door
SEWER
8 Units – 2810/2814 E Monte Cristo, Phoenix - $300,000/$37,500 per door
RATES WILL
6 Units – 2613/2617 E Portland, Phoenix - $100,000/$16,667 per door
BE RESET IN
3 Units – 907 W Pierson, Phoenix – Seller Carry - $129,000/$43,000 per door
DECEMBER
20 Units – 1081 N California, Chandler – Seller Carry - $825,000/$41,250 per door
THROUGH
4 Units – 2837 E Marconi, Phoenix - $163,000/$40,750 per door
APRIL
3 Units – 1524 W Monroe, Phoenix – Historic! - $239,000/$79,667 per door
DEPENDING
th
3 Units – 10625 N 18 Ave, Phoenix - $120,000/$40,000 per door
ON YOUR
BILLING
7 Units – 1620 E Palm, Phoenix – REO - $135,000/$19,285 per door
CYCLE AND
8 Units – 2837/2845 N Salem, Mesa – Seller Carry - $490,000/$61,250 per door
CITY – GET
4 Units – 717 E Amelia, Phoenix - $252,000/$63,000 per door
THOSE LEAKS
4 Units – 2825 E Paradise Lane, Phoenix - $150,000/$37,500 per door
STOPPED
4 Units – 2254 E Broadway, Mesa - $150,000/$37,500 per door
st
NOW!
16 Units – 750 E 1 Ave, Mesa – Seller Carry - $540,000/$33,750 per door
I
NSTALL
LEAK
4 Units – 6749 W Palmaire, Glendale – All 2 Bed units - $135K/$33,750 per door
DETECTOR
3 Units – 3628 E Verde Ln, Phoenix – All 2 Bed Units - $173,250/$57,750 per door
VALVES IN
4 Units – 101 W Gary, Chandler – All 2 Bed Units - $185,000/$46,250 per door
nd
THE TOILETS!
4 Units – 804 W 2 , Tempe – All 1 Bed Units - $219,000/$54,750 per door
CALL FOR
th
3 Units – 5123 N 28 Dr, Phoenix – All 2 Bed Units - $107,000/$35,667 per door
MORE INFO.
th
3 Units – 8826 N 6 St, Phoenix – Seller Carry - $140,000/$46,667 per door
18 Units – 2503 E Clarendon, Phoenix – All 2 Bed Units - $825,000/$45,833 per door
3 Units – 1327 E Carol, Phoenix – Seller Carry - $132,000/$44,000 per door
4 Units – 2260 E Broadway, Mesa – All 2 Bed Units - $140,000/$35,000 per door
4 Units – 1978 E Don Carlos, Tempe – All 2 Bed Units - $259,000/$64,750 per door
4 Units – 4108 E Portland, Phoenix – All 2 Bed Units - $120,000/$30,000 per door
4 Units – 3351 W Harmont, Phoenix – 1 Three Bed Unit/3 Two Beds - $200,000/$50,000 per door
th
6 Units – 6233/6239 N 14 St, Phoenix – Great Unit Mix - $507,000/$84,500 per door
“If you want talk and promises, call the other guys. If you want results, call Lloyd and Lois!”
Call the #1 Multifamily Team* Since 2004! Lloyd & Lois Kaipainen at 602-265-6617
(*per MLS Stats)
Please call Lloyd or Lois at 602-265-6617
or visit us on the Web at www.phxazapts.com.
SJ Fowler Real Estate, 2200 E Camelback Rd #110, Phoenix AZ 85016
Office: 602-265-6617 Fax: 877-504-2013
Email: [email protected]