The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
Offering A type properties and multi-family buildings for B pricing provides opportunities in an otherwise highly competitive market. Municipalities will team up with development teams on projects that help and improve their communities, often with tax credits to make it happen. This is an opportunity zone in this time of high migration to certain areas throughout the United States.
Richard Wilson: Great. Where is there an opportunity in multi-family real estate development given how competitive that space has become?
Chad Moss: Dave alluded to it earlier. When you’re looking at offering an A type building at B prices, the way you get there is through tax credits. And whether it’s a municipality offering incentivizing the developer to come up with a project that would help the community and give them relief on whether it’s permitting or come from a CRA fund or whatever, or it could be in an opportunity zone. I think all those little things they help out a performer to make those types of project happen.
Richard: Right, okay, great – yeah, that’s helpful.