Value Add Cycle

What’s next for value-add deals: Boom or bust?For years, the value-add strategy dominated multifamily investing. Investors bought underperforming properties, made strategic upgrades, and increased rents to unlock significant value. But as more capital entered the space, competition surged, prices inflated, and true value-add deals became harder to find. At the peak of the cycle, deals were flipped multiple times, with each new buyer attempting to extract more value—sometimes beyond what was realistic.Now we’re in a different market. Capital has dried up for the most part, and many properties that once had strong financial backing are struggling with deferred maintenance and lower-than-expected rent growth. As the market resets, the next wave of value-add deals is beginning to take shape. But what conditions need to change before investors can take advantage? Learn more about LSCRE:www.lscre.com