Here’s another story pointed out by a reader. If only I had millions to sink into an apartment complex three years ago, I could have $6 million more now!
What difference can three years make in terms of rising real estate values?
In the case of Country Glen Apartments in Kent, which recently changed owners for the second time in three years: about $5.8 million.
…
Jim Claeys, a commercial real estate broker with CB Richard Ellis in Seattle, issued a press release Monday announcing the property sale, but did not name the buyer or sellers.Claeys, who represented both parties in the transaction, described the buyer and sellers as private investors from California.
So here’s the interesting question. Why is the California buyer willing to pay $5.8 million more for the apartment complex than it sold for 3 years ago (a 50% increase)?
- They expect to jack up rents by 50%.
- They expect the real estate to appreciate by 50%.
Choose one.
(Clayton Park, King County Journal, 06.06.2006)