Market: As we begin September 2020, the Westlake/MacArthur Park multifamily market continues to see demand from buyers as values are holding strong. Over the last four quarters, the average price per square foot and price per unit increased and capitalization rates slightly increased.
Interest Rates: The Federal Reserve is keeping its benchmark interest rate near zero, while interest rates for five- and 10-year fixed loans have decreased since July.
Valuation Metrics: Average price per square foot increased by 11.3% and average price per unit increased by 9.6% over the last four quarters. Capitalization (CAP) rates for the period averaged 4.51%.
Rents: On average, year-to-date rents have decreased across all unit types, while year-over-year occupancy has decreased by 1.9%.
Outlook: We are seeing an uptick in demand for well-located properties now that parts of the economy are re-opening and expect it to continue as long as we don’t see a major shift in COVID-19 cases.
Owners: Call us if you would like to receive offers for your investment property, or if you would like to know the current value of your property.
Buyers: Give us a call and let us know your buying criteria.
Referrals: If you know anyone who is considering selling their property, please don't hesitate to make an introduction or forward this email.
