Despite concerns about potentially slowing economic growth and new rent control laws around the country, investors continue to go after apartment properties. The volume of U.S. multifamily acquisitions in the first nine months of 2019 was higher than during any other comparable period since this expansion cycle began a decade ago. In fact, this year might set a record for multifamily sales volume, says Alexis Maltin, manager of analytics with New York City-based research firm Real Capital Analytics (RCA). Investors spent $130.6 billion on multifamily acquisitions in the first three quarters of 2019, according to RCA.
Investors continue to be drawn to multifamily properties because of strong demand that has kept rents growing and occupancy levels well above 90 percent.
“From a fundamentals demand perspective… there is still a lot of race left in the apartment markets,” says Chicago-based Brian McAuliffe, president of CBRE Capital Markets.
of housing to match the growing number of new households. “The reason why fundamentals are so strong is that we have a housing crisis,” says John Sebree, director of the national multi housing group with brokerage firm Marcus & Millichap.
This has attracted not only experienced multifamily players, but also investors who are new to the sector, according to McAuliffe. “We get more buyers who are showing up on bid lists that are new names,” he says. But the amount of money chasing multifamily properties and the new, inexperienced investors entering the market are causing sector experts like Sebree to wonder if they are overpaying for assets.Find out more about multifamily financing at Liberty Realty Capital or to contact us about your next project to finance use the contact form to schedule a call.
No comments:
Post a Comment