First Half ’19 Investment Sales Update

July 25, 2019

First Half ’19 Investment Sales Update

July 25, 2019
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RECORD BREAKING FIRST HALF

The multifamily sector logged record-breaking deal activity in the first half of 2019. The $80.5 billion in executed transactions bested the previous record for deal activity set in the first half of 2016. This development is impressive given the that we are late in the current expansion cycle. Growth in deal activity was most apparent in secondary markets. Baltimore, Inland Empire, Charlotte, and Tampa posted strong year-over-year grow.

SINGLE-ASSET, GARDEN-STYLE APARTMENTS DROVE GROWTH

With less entity and portfolio deal activity in the first half of 2019, growth was driven by single-asset deals. Garden-style apartments performed well compared to mid and high-rise communities, which is to be expected as secondary markets outpaced urban-centered markets from a deal activity standpoint.

PHOENIX DRAWING RECORD INVESTMENT

DFW remained at the top of the list for deal activity in the first half of 2019. Phoenix has continued to draw serious investor interest with strong rent growth and a booming economy. Through June, $4.0 billion in transactions have been executed in Phoenix, moving the metro up to No. 2 for investment activity in 2019. Los Angeles, Atlanta, and Houston round out the top five for deal activity.

Source: RCA; Berkadia Research

~Jonathan Rappa, Director of Research