One of the multifamily sector’s most reliable pricing anchors has been flipped upside down: in many trades today, brand‑new Class A assets are selling at higher cap rates than older value‑add product.
With core and core‑plus funds largely sidelined the last few years, value‑add buyers have become the marginal price setters and they are underwriting newer deals with a very different set of return targets. These investors are paying up for older stock they can actively improve, while demanding a discount on new deliveries that offer less scope for forced appreciation.
The capital most eager to transact today is not looking for long‑duration, bond‑like income streams; it is looking for upside. The result is an upside‑down yield curve by vintage that would have been hard to imagine a few years ago.

Source: Globe St.

















