Apartments fetch $39M in buyers' market
The News and Observer reports: A Philadelphia real estate company is taking advantage of a buyers' market to snap up a northwest Raleigh apartment complex.
Switzenbaum & Associates on Wednesday paid $39 million for the 374-unit Ashley Park at Brier Creek. The price was 5 percent more than what Chicago-based seller Equity Residential, one of the nation's biggest real estate investment trusts, paid in March 2005.
It's the Triangle's biggest apartment sale of the year. At the same time, the deal shows just how much prices have cooled in recent years.
When Equity bought Ashley Park for $99,000 per unit, the deal represented the third-most expensive apartment transaction this region had seen. In ensuing years, as apartment investors flooded the region, prices soared. One Durham complex sold in late 2006 for more than $180,000 per unit.
In the past two years, as lenders have tightened loan standards, many investors have fallen out of play. During the year ending March 31, about $360 million have been spent on Triangle apartments, according to Real Capital Analytics, a New York research firm. That's down 71 percent from the same period a year earlier.
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Posted by: Nina Turner