Apartment Building Investment Sales Jump 31% in Q1 2012 says Real Capital Analytics.

Apartment building investment sales continued their ascent in the first quarter of 2012, jumping 31 percent over the same time frame in 2011, according to New York–based commercial real estate research firm Real Capital Analytics (RCA).

  • Garden properties, totaling $7.1 billion in sales, drove most of the volume
  • High-rises rose $4.8 billion.
  • Both sectors jumped 30 percent from a year ago.
  • Portfolio deals also boosted the first-quarter totals, with 52 transactions involving 185 properties adding $2.6 billion in volume.
  • Distressed sales provided 13 percent of total sales, a 9 percent increase from the fourth quarter of 2011.

The volume trends are consistent across tertiary, primary, and secondary markets, but cap rate trends vary. In secondary markets, they remain unchanged; in tertiary markets, they’ve increased slightly; and in major markets, they’ve compressed.

See the whole MFE article: Apartment Sales Jump 31 Percent in Q1 2012

Tertiary markets still represent a value opportunity and at Ashworth Partners we’ve identified a few markets with unique drivers that catch the upswing. Contact us to find out more.