NEW YORK – May 19, 2021 – Berkadia announced today a record-setting start to the year for Berkadia Real Estate Advisors, reaching a total investment sales volume of $5.2 billion in the first four months of 2021, totaling more than 150 multifamily transactions across market rate and Affordable housing properties. As the apartment sector remains highly sought after by investors driven by its resiliency and liquidity characteristics, Berkadia has closed investment sales transactions across the nation, but most notably in Seattle, Phoenix, Dallas, Washington, D.C. and Detroit so far in 2021. Berkadia’s average deal size has hovered around $27.5 million, but the firm has seen a significant increase in larger transactions signaling that sidelined capital is re-entering the market and eager to capitalize on institutional quality assets in markets exhibiting strong fundamentals.
“With the apartment sector making up nearly 40 percent of all commercial property sales activity in the first quarter, our team is energized by the activity we have seen to kick off the year, particularly given the uncertainty we faced at this time last year due to the COVID-19 pandemic,” said Keith Misner, Senior Vice President and Co-Head of Investment Sales at Berkadia. “The increase in investment sales activity points to investors’ confidence in the resiliency and long-term fundamentals of the sector.”
According to Berkadia market data, Dallas-Fort Worth, Phoenix and Atlanta led all markets in investment sales activity in the first quarter of this year, each posting higher-than-normal deal activity. At the same time, expensive gateway markets, such as Los Angeles, New York City, Seattle and Boston, saw slower investment sales activity compared to the start of 2020. This should not be a surprise given the pandemic only accelerated the trend in migration out of more densely populated urban markets to lower cost markets and investors shifted their focus to secondary markets accordingly.
Berkadia’s growth in investment sales activity succeeds the acquisition of Moran & Company and launch of Berkadia Institutional Solutions, powered by Moran at the beginning of 2021. The dedicated platform for institutional investors combines the robust suite of services and resources of Berkadia with Moran’s 25-year legacy to deliver greater access to fully integrated capital solutions for clients.
“We have seen promising momentum in the market so far this year and remain optimistic on the investment sales outlook for the months to come,” said Mary Ann King, Berkadia’s Co-Head of Investment Sales and Head of Berkadia Institutional Solutions. “As we continue to see robust activity across the nation, we remain committed to being a trusted partner and advocate for our institutional clients, helping them see around corners to achieve the best long-term strategies to achieve their investment goals.”