Multifamily Apartment Prices and Sales Volume Rising in Seattle
Apartment Finance Today reports: In the Emerald City, the multifamily market has been heating up. A rush of CRE investment activity has lifted the Seattle apartment market with about $396 million in transactions in Q2, more than double the first quarter’s $172 million, according to property market research firm Real Capital Analytics.
"Seattle is one of those markets where you’re seeing an economic recovery, some job growth, and some really positive absorption trends," says Dan Fasulo, managing director at Real Capital Analytics.
In Q2, the average price per unit jumped to more than $143,000, up from $89,000 per unit in the previous quarter. And average yields fell from 6.8% in Q1 to 5.1% in Q2, according to RCA's data. Of the 13 significant property trades closed in Seattle since the beginning of June, no less than five showed cap rates of less than 5%.
Interest from institutional investors has picked up in a big way. Last year, only 8% of all multifamily transactions were bought by large investors. But so far this year, 35% of the $568 million in transactions has been sold to firms like JP Morgan, Deutsche Bank and UBS. And foreign investment interest in Seattle is accelerating with 12% of this year’s transactions coming from cross-border investors, compared with about 3% in 2010.
Non-subscribers can get a report of RCA's latest Seattle Apartment trend data here.
View the full article on Apartment Finance Today: Multifamily Apartment Prices and Sales Volume Rising in Seattle
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Posted by: Matthew Stone