Out-of-state buyers are increasingly entering the $10 million-plus apartment market in search of discounted deals, says Marcus & Millichap Real Estate’s Las Vegas office. Disparity between buyers’ and sellers’ price points could decrease for lower-tier properties, as a result. In the top-tier, however, the few best-in-class, REO assets that are on the market have not been priced at a significant discount, discouraging some potential investors. Class B/C assets, meanwhile, change hands at first-year yields in the mid-7% to low-9% range. Higher returns for these properties, compared to the coastal markets, will attract out-of-state investors. High rental demand is being seen due to elevated suburban foreclosure activity, especially in the Henderson, Southeast and West submarkets. Out-of-State Buyers Seeking Apartment Deals
Out-of-state buyers are increasingly entering the $10 million-plus apartment market in search of discounted deals, says Marcus & Millichap Real Estate’s Las Vegas office. Disparity between buyers’ and sellers’ price points could decrease for lower-tier properties, as a result. In the top-tier, however, the few best-in-class, REO assets that are on the market have not been priced at a significant discount, discouraging some potential investors. Class B/C assets, meanwhile, change hands at first-year yields in the mid-7% to low-9% range. Higher returns for these properties, compared to the coastal markets, will attract out-of-state investors. High rental demand is being seen due to elevated suburban foreclosure activity, especially in the Henderson, Southeast and West submarkets. 
