BJ Turner serves as founding principal of Dunleer. BJ Turner founded the investment and advisory firm in 2014, and has since acquired more than 30 multi-tenant properties in Southern California.
In recent months, a key trend among apartment investors has been a return to core markets. The value-added yield in both secondary and tertiary markets has dwindled, and the capitalization rates in non-core markets have approached those of core markets. In many cases, core markets now offer rather compelling risk-adjusted returns when compared to non-core investments.
Many core markets will likely continue to see low supply and growing demand as highly skilled employees are attracted to these geographic locations. New developments will become increasingly difficult to execute due to high land prices, rising costs of construction, and delays due to the coronavirus pandemic.
COVID-19 has brought the threat of a recession and triggered historically low interest rates. Both of these factors serve to attract investors back to core markets as a hedge against an uncertain future.
