Home > multifamily, Uncategorized > Transaction Volume of Multifamily Properties are Rising

Transaction Volume of Multifamily Properties are Rising

National Real Estate Investor (NREI)        reports:

While transaction volumes for U.S. multifamily properties continue to be high and rising, apartment properties are not seeing the same trend in their price values, a phenomenon that has caused REITs to trade apartment properties as part of larger portfolios or through mergers13, according to data from global commercial research firm Real Capital Analytics (RCA).    says Dan Fasulo, Managing Director at RCA.

The top six markets for REIT apartment acquisitions in 2013 were Los Angeles, New York City, San Francisco, Boston and Seattle. Other top markets included secondary markets like Atlanta, Orlando, Dallas and San Diego.

Top apartment markets have largely fully recovered from the 2007 recession, causing them to produce less in yield than previously. Multifamily property prices were up 5% from peak levels in 2013, with property values in Manhattan now at record highs of 150%, according to the RCA Commercial Property Price Index (RCA CPPI).

Price values for other commercial property types, including office, industrial, retail and hotel properties, are still at least 10% below their peak levels. RCA CPPI index returns for apartment property types rose by 12% in 2013 at a much slower rate than the other property types.

Average cap rates for apartments in 2013 also lagged behind other property types, at 6.2%; nevertheless, apartment cap rates rose by 4 bps.

Categories: multifamily, Uncategorized
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