August 11, 2022
In an interview with Wealth Management Real Estate, Derek Graham, President and Principal at Odyssey, shares his insight on how the increased cost of capital has forced a reset of multifamily valuations.
Buyers are beginning to ask for discounts and some deals fall through. But experts say the disturbance in the sector is based on “short-term uncertainty.”
In early June, two days before the Federal Open Market Committee increased the Federal Funds Rate by 75 basis points, Odyssey Properties Group struck a deal to buy a multifamily asset in Dallas at a 3.5 percent cap rate. The Los Angeles-based real estate investment firm was hoping to add the garden-style property to its existing portfolio, which consists of 44 properties comprising 7,217 multifamily units across 14 states with a total estimated value of more than $1.5 billion.