Apartment Sales Up 31%; CBRE Stays on Top
Real estate investors continued to flock to the multi-family sector last year, as sales soared 31% to another record.
Some $87.3 billion of large apartment properties changed hands in 2015, far above the previous high of $66.7 billion set the year before, according to Real Estate Alert’s Deal Database, which tracks deals of $25 million and up. While other property types saw trading slow in the second half, multi-family deals continued full-throttle. There were $38.3 billion of first-half transactions — and another $49 billion in the last six months.
Buyers from around the world have been drawn to U.S. rental properties as it’s become accepted wisdom that American home-ownership rates will persist at historically low levels. Anxiety about interest rates, volatile stock markets, falling oil prices and other macroeconomic issues have given investors in other asset classes pause. Not so for apartments.
“Multi-family is about as close to an intrinsically hedged asset as you can get,”
said Jason Pantzer of New York’s Pantzer Properties, which specializes in East Coast apartment investments. “In a good market you can drive rents, with asset values shooting up, and everyone benefits. In a dicey market, where everyone has concerns, the last thing tenants are going to do is move out of their apartment and come up with a down payment to buy a home. The last thing developers are going to do is get new financing to build.”