View of the side of a condo building

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Investors Eye Bulk Condo Purchases in Big Cities

February 17, 2021

The suburbs may be gaining home buyers at a faster pace in the pandemic, but investors are still banking on a big-city comeback.

Investors in Manhattan are being drawn to lower prices and are reportedly beginning to snatch up condos in bulk. Investors are looking for opportunities to purchase individual apartments wholesale, which has prompted The Wall Street Journal to call them to the “Costco shoppers for condos.”

Fund managers, real estate firms, and other bulk buyers are purchasing three to even more than 100 condos at sharp discounts. They are then renting them out with plans to sell them once the city’s housing market recovers from the pandemic. Developers may be more enticed to offer a quick bulk sale as some of their newer projects linger in big cities across the country.

But developers may prefer to keep these transactions more private, The Wall Street Journal reports. A bulk buyer may be able to acquire a significant discount on condos since they’re buying several—deals that a typical buyer who is just purchasing one may not be privy to.

AnneMarie Alexander, a real estate broker at Douglas Elliman Real Estate, told The Wall Street Journal that she is working with several investor groups who are placing bids to purchase dozens of new development condos in bulk. The prices range between 25% and 35% off the asking price.

Source: 
Bulk Condo Buyers Descend on Manhattan, Looking for Cut-Rate Deals,” The Wall Street Journal (Feb. 16, 2021) [Log-in required.]