Continued low interest rates make the multifamily market even more attractive, McConnell says.

“Current pricing is a function of the amount of capital in the market, the low interest rate environment and very strong underlying fundamentals,” says McConnell. “For example, cap rates for Class A assets in Northern New Jersey are averaging 4.5 percent, which is about 100 basis points lower than its 5-year average of 5.5 percent. The drop in cap rates that we have seen has, for the most part, leveled off. However, buyers are still willing to push the envelope on pricing for assets in very desirable markets with high barriers to entry.”

McConnell sees active demand for a wide range of multifamily opportunities.

“Buyers do have a voracious appetite for all types of apartment properties and across all submarkets,” he says. “In particular, there is high demand for properties located near transit hubs, such as Jersey City and the 'Gold Coast' area of Hudson County. There are a lot of investors looking to buy property there, as well as new development occurring in those areas to satisfy renter demand. Today's investors also have a strong desire to buy properties that appeal to millennials, or the new 'renter by choice' generation, who want to locate in live-work-play destinations.

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