In a lot of ways, it’s a seller’s market.
Multifamily communities have been selling like hotcakes, and by all accounts, the market is set to outdo itself again in 2013.
The volume of apartment transactions has expanded annually for the past three years, after hitting a trough of $14.9 billion in 2009. By the end of the third quarter, $47 billion in multifamily assets had changed hands in 2012, on pace to easily eclipse last year’s $53.9 billion.
While these figures speak to the overall health of the market, this expansion may not be good news for buyers. New and old money continues to circle over the sector, from smaller, local players and national institutions alike, as bargain-hunting investors increasingly chase yield off the beaten path. The competition gets a little steeper with each passing day.
The apartment market’s recovery was led by Class A properties in major metros. But just like Yogi Berra said, “Nobody goes there anymore because it’s too crowded.” With so much interest in the cream of the crop, a trickle-down has occurred and will accelerate in 2013.
“We are already seeing more money go into… Read more…