It's caused by the high cost of construction. $30,000,000 gets you a few hundred mid-market three story walkup wood framed apartments with surface parking and some modest resident amenities.
From which, if all goes well, investors will see moderate rates of return after four or five years. On the positive side, it's all mailbox checks. On the downside, nobody will become a billionaire on the deal. So it's all risk minimization and most possible deals simply are not viable.
From which, if all goes well, investors will see moderate rates of return after four or five years. On the positive side, it's all mailbox checks. On the downside, nobody will become a billionaire on the deal. So it's all risk minimization and most possible deals simply are not viable.