I'm currently working on a 9-unit, 5,000 sf brick building in the Back Bay (picture above - call me at 617-593-5685 for details pre-marketing), about to come on for $3 Million and, with projected net income around $145-$155K, priced well for a quick sale at about a 5 cap, while I'm representing the sellers of some Coolidge Corner multi-fams that, as $1.395 to $1.488 Million are offering projected 6.5 to near 7% cap returns (exceptional in this tight market).
We've seen other buildings trading as low as 4.5 or even 4 caps and, in a reverse of a trend from a few years ago, being bought as long-term rentals rather than quick condo conversions (despite, or perhaps because of the the strong condo market, we are seeing rents increasing and, as several local agents have told me this week, vacancy rates, especially in Brookline and nearby parts of Boston, hovering the very low single digits - as many landlords tell me - "we're 100% full at historic high rents.") With the chance to lock in mortgage rates at today's low's, we're seeing investors coming up with strong 30-50% down payments and acquiring property in these high value, "gold-quality" locations - the flight to quality in today's market is strong.
(Note: As a Vice President at Coldwell Banker Residential Brokerage, and affiliated with Coldwell Banker Commercial NRT, I specialize in helping buyers and sellers of investment properties throughout Greater Boston and can be reached at 617-593-5685 or todd.glaskin@gmail.com with any questions).
