$125K/door Calgary Multi-Family

[JDaley]

I just noticed an interesting listing that appeared over the weekend in Calgary, South Calgary (Listing ID: C1017529), a concrete building, it looks to be in good shape (well maintained), in a good area, and that listed and appears to have sold for $125K/door. I guess in the spirit of similar posts where increasing interest rates and increasing vacancies is a good thing, I guess the decreasing cost per door of a multi-family spells good fortune for us all in Calgary

! Actually I do believe multi-families are overpriced in Calgary and its refreshing to see multi-family listings begin to drop in price to more reasonable levels.

 

[gwasser]

QUOTE (JDaley @ Jul 28 2010, 08:57 AM) Looks good at first sight. Hope this is becoming a trend.

 

[RedlineBrett]

QUOTE (JDaley @ Jul 28 2010, 08:57 AM) I just noticed an interesting listing that appeared over the weekend in Calgary, South Calgary (Listing ID: C1017529), a concrete building, it looks to be in good shape (well maintained), in a good area, and that listed and appears to have sold for $125K/door. I guess in the spirit of similar posts where increasing interest rates and increasing vacancies is a good thing, I guess the decreasing cost per door of a multi-family spells good fortune for us all in Calgary

! Actually I do believe multi-families are overpriced in Calgary and its refreshing to see multi-family listings begin to drop in price to more reasonable levels.


Still showing as active on the system... but it`s active at 125k/door right now.

When I went through this building in 2008 it felt pretty wonky... like if you were standing in the top unit on the NE side you could put a golf ball on the floor and it would immediately roll towards the corner of the building. I have no idea if they`ve fixed it or not but since they`ve cut their price by 750k I`d assume no... Would definitely reccomend an extensive engineering study if you`re taking a serious look at this property.

EDIT - The history on it is pretty crazy too. They`ve been trying to sell on CLX for the better part of six years... mostly with the same agent. Only one pending sale which never went firm. They had it priced as low as 1.5 at one point...

 

[Thomas Beyer]

QUOTE (JDaley @ Jul 28 2010, 07:57 AM) .. Actually I do believe multi-families are overpriced in Calgary and its refreshing to see multi-family listings begin to drop in price to more reasonable levels.
We just wrote an offer for 132/door for a similar concrete building in Calgary .. a 5.5% CAP rate .. and got outbid again .. so 5% CAP rate is what you`re paying in Calgary for a decent asset, more or less .. and i is a result of cheap mortgage money, tight supply and lack of better yielding alternatives in the commercial real estate or stock market !

A bit better in Edmonton .. maybe 1% CAP higher .. but also very tight supply/high prices !

 

[JDaley]

QUOTE (RedlineBrett @ Jul 28 2010, 09:54 AM) Still showing as active on the system... but it`s active at 125k/door right now.

When I went through this building in 2008 it felt pretty wonky... like if you were standing in the top unit on the NE side you could put a golf ball on the floor and it would immediately roll towards the corner of the building. I have no idea if they`ve fixed it or not but since they`ve cut their price by 750k I`d assume no... Would definitely reccomend an extensive engineering study if you`re taking a serious look at this property.

The building sits on top of a hill so what you`re referring to is natural settling (of any building) not a structural problem otherwise there`d be cracks all around it as you`re suggesting. Why don`t you call the realtor and find-out the status of the building - there`s 4 offers on the table (they`re not accepting any further offers) with an engineering study begun. The place is in Marda loop and surrounded by posh buildings all around it and the building is well maintained.

 

[JDaley]

QUOTE (ThomasBeyer @ Jul 28 2010, 10:03 AM) We just wrote an offer for 132/door for a similar concrete building in Calgary .. a 5.5% CAP rate .. and got outbid again .. so 5% CAP rate is what you`re paying in Calgary for a decent asset, more or less .. and i is a result of cheap mortgage money, tight supply and lack of better yielding alternatives in the commercial real estate or stock market !

A bit better in Edmonton .. maybe 1% CAP higher .. but also very tight supply/high prices !

I agree but we`ll have to wait and see if this is indeed a trend, however with increasing vacancies and higher interest rates as well as increasing inventory (even in multi-families) it suggests prices are headed downward. On a side note, Thomas I thought you weren`t interested in investing in multifamies in Calgary? Good to see you`re in the ball-game now. Persoanlly I`d wait a little longer before snapping-up a property or two. Thanks for your reply.

 

[RedlineBrett]

QUOTE (JDaley @ Jul 28 2010, 11:24 AM) Brett you`re misinforming people. The building sits on top of a hill so what you`re referring to is natural settling (of any building) not a structural problem otherwise there`d be cracks all around it as you`re suggesting. I bet you paid > $200K/door on your units ? Why don`t you call the realtor and find-out the status of the building - there`s 4 offers on the table (they`re not accepting any further offers) with an engineering study begun. The place is in Marda loop and surrounded by posh buildings all around it and the building is well maintained.

Just offering my thoughts on what the building was like when I was in there? You are offering your opinion that it is such a smoking deal at 125/D. "Natural settling" or not certainly made me (and my client) suspicious enough to look elsewhere... albeit at 3.25M. It`s on 26th ave and it was far from a gem two years ago.

 

[JDaley]

I`ve been in the building - its quite nice and not at all what you`re describing. There`s multiple offers on the property, call the realtor (R. Vekeman). I hope $125K/door is indeed the new lower benchmark so we should welcome this as good news!

 

[JDaley]

For those interested, here`s the listing :

http://www.icx.ca/propertyDetails.aspx?pro...dKey=2116071976

 

[housingrental]

I`m interested in hearing more discussion between Brett and JD on Calgary real estate

 

[REINteam]

Gentleman,

This kind of bashing of each other is unnecessary on our forum. I understand that frustrations occur because opinions will always differ, but there is no need to attack each other personally.

This argument should be kept to a civilized nature, and any further attacks will be dealt with by our moderators. Thank you for your cooperation.


Regards,
Madison Norton

 

[JDaley]

QUOTE (MadisonNorton @ Jul 28 2010, 01:48 PM) Gentleman,

This kind of bashing of each other is unnecessary on our forum. I understand that frustrations occur because opinions will always differ, but there is no need to attack each other personally.

This argument should be kept to a civilized nature, and any further attacks will be dealt with by our moderators. Thank you for your cooperation.


Regards,
Madison Norton

Thank you.

 

[RedlineBrett]

I am more than happy to talk real estate and specifics with any member...

 

[gwasser]

Other forums and comment sections (e.g. the Globe and Mail`s) can get quite heated and unproductive. Many of those contributors are pretty hot under the collar (or are thinking with other parts of their body than their head). On this forum, we`re trying to keep things friendly and factual.

 

[JDaley]

You mentioned the property in this post was once listed as low as "1.5", I`ll assume its $1.5MM, did you know the original owners paid approximately this amount in 2003 or at $75/door. They listed once before at $750,000 above the current price in 2008. Roger knows the owner and the owner is now retired. Do you own similar property in Calgary ? lets stick to discussing this opportunity, objectively.

 

[REINteam]

Hi all,

Sorry, been away sick and missed this discussion. However, as I`m known for (sorry Adam), I`m going to edit some of the responses as they don`t fit with the general feel of www.myreinspace.com or the guidelines. I`m all for constructive criticism, I value opposing opinions and this forum is 100% dedicated to healthy debate...but key word there is healthy.

To all posters - please keep any past posting grudges in the past, keep personal attacks out and let`s get back to the business of real estate. Any further posts to this topic will be deleted if not appropriate...not edited.

In the future, if you have questions regarding posting material, if you want to make sure it "jives" with the guidelines, feel free to shoot me a quick email at [email protected].

Thanks for your cooperation in this matter.

 

[housingrental]

That`s okay I forgive you Ray
I was able to read all of it before it was deleted

 

[JDaley]

For those of you interested, this unit sold with a clean engineering report (5 days on the market) . I think this now establishes (or should establish) a new lower bench, which is great for the market. Its hard to see investors rushing to spend $150-160k/door for a multi-family in Calgary knowing a decent unit in a great neighborhood just sold for $125K/door with a clean bill of health.

 

[Thomas Beyer]

QUOTE (JDaley @ Jul 29 2010, 09:25 PM) For those of you interested, this unit sold with a clean engineering report (5 days on the market) . I think this now establishes (or should establish) a new lower bench, which is great for the market. Its hard to see investors rushing to spend $150-160k/door for a multi-family in Calgary knowing a decent unit in a great neighborhood just sold for $125K/door with a clean bill of health.
150/door for upgraded large 2BRs with a view of the Rockies is not too expensive even if the building next door sells for 125/door as it may be uglier with more 1BRs ..

 

[BrianPersaud]

QUOTE (ThomasBeyer @ Jul 30 2010, 12:09 AM) 150/door for upgraded large 2BRs with a view of the Rockies is not too expensive even if the building next door sells for 125/door as it may be uglier with more 1BRs ..


Hi Thomas,

Two recent solds in Toronto:

1. $120/door with a 6.3% cap (the buyers assumed the first at 55% LTV and put the remaining cash down) 322 doors - Nice area in Scarb
2. $55k/door cap hard to determine because the amount of repairs and maint involved (all cash offer at $4 million) 72 Doors - North York

Ever think about coming to Toronto?