Hot Market - in Apartment Buildings

[Northern Light]

According the article below from the Globe and Mail, bidding wars are routinely erupting when older apartment blocks come up for sale.

Apparently some in mid-town Toronto have sold for a cap-rate as low as 2% (that's the estimated ROI based on current rental income after factoring in the cost of purchase).

Sophisticated investors are desperate to buy Canada’s apartment buildings; values soar despite COVID-19

Renewed hunger for rental properties has led to a surge of bidding wars this fall that would routinely draw 10 or more interested buyers

www.theglobeandmail.com

 

[TrickyRicky]

Good eye on this article.

I was going to post it in a rental rate thread but couldn’t find it right away.

A lot of tenants are getting squeezed in a vice between this global institutional capital and, ironically the measures tenant advocates are proposing and getting implemented to help tenants.

Why? Because global capital is looking for distressed assets to squeeze out a few more yield-points out of. Meanwhile, increasing regulatory and financial restrictions and sophistication are delivering assets into institutional hands.