Multi Family Market Report July 2021

As we reach the midway point of 2021 – it is incredible to reflect on the number of apartment buildings that have transacted over the past six months. Entering my 10th year selling multi-family investments this summer, I feel very fortunate to have formed strong relationships with many investors of apartment buildings and I am very proud to be a part of my clients growth and evolution in the marketplace.

I am having conversations daily with owners and hopeful Buyers of apartment buildings trying to make sense of a real estate market that is difficult to make sense of at times. As you will see from the transactions presented in this report, cap rates are incredibly low on properties that offer tremendous upside on rents. These transactions are difficult to comprehend for new investors entering the market, but it is the experienced operators who see the long term potential of these assets that are able to look beyond the going in cap rate and rely on their skill and expertise to increase their profitability. On the other hand, there are some transactions offering attractive cap rates in the 4’s, but Buyer’s should expect to pay a hefty per unit price for a stabilized asset with not as much upside. It is interesting to note that 80% of the transactions listed in this report were purchased by landlords already operating in Waterloo Region. This further demonstrates the difficulty of new buyers entering the market.

In the months ahead, we hope to continue to grow to meet the needs of old and new clients and to further establish our team as leaders in the Waterloo Region multi-family market. If you have any questions – please do not hesitate to reach out. We look forward to working with you to achieve your goals.

Enjoy the rest of your summer,