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U.S. Multifamily Acquisitions Hit Record Highs
U.S. multifamily acquisitions rose by 4.4% last year to $184 billion, the highest volume since Real Capital Analytics began tracking the market in 2005, CBRE reported. Overall investment was largely driven by single-asset purchases totaling $145 billion in 2019, up by 10.3% year-over-year.
Investment increased Y-O-Y in 23 of the largest 30 markets by volume. Boston had the largest increase at 73.4%, followed by Seattle (65.5%), Las Vegas (63.4%), Baltimore (47.6%) and Charlotte (30.8%). Buffeted by recently enacted rent regulations, New York City had the largest decline in 2019 (-35.2%), followed by Chicago (-26.5%) and Houston (-17.1%).
“We expect sustained enthusiasm and capital for multifamily investment through 2020, along with deep pools of debt capital to finance buying activity,” said Richard Barkham, global chief economist and head of Americas research at CBRE. This landscape should help bring reluctant sellers to the market and keep investment activity at very high levels.”
Pictured: Met Tower in Seattle, which traded for $216 million.
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- ◦Sale/Acquisition
