April 8, 2016
Demand for multifamily units and properties intensified in 2015, leading to big transactions and huge renter demand, according to the National Multi-Housing Council NMHC 50 2016 report. Metrics included national absorption of 260,000, occupancy at 95.9%, and starts numbering 380,000.
The NMHC, relying on statistics from Real Capital Analytics (RCA) data, showed apartment transactions at an all-time record of $150 billion. Total number of units sold – 1.2 million – also hit a record high. The average sales price per unit was another record at $136,130, while the cap rates dropped to 5.9%.
Large buyouts also made news. Lone Star Funds acquired Home Properties for $7.2 billion, Clarion bought Gables Residential, and Brookfield Asset Management acquired Associated Estates. In the works: Blackstone’s acquisition of Greystar Real Estate Partners’ portfolio, expected to close sometime this year.