GlobeSt.com: What do you see happening with transaction volume in this market over the next year or two?
Leeson: Demand for Orange County multifamily rentals is high, and class-B and -C inventory has not seen much growth since construction has focused heavily on class-A products. Vacancy levels remain historically low, providing a runway for continued rental improvement. These factors, along with an ample supply of lending sources and available capital will keep the market strong and highly competitive. I believe transaction volume will remain on par with current levels and that values will continue to rise.

GlobeSt.com: What else should our readers know about the Orange County multifamily market?
Leeson: I think it is important for readers to know that Orange County's multifamily market is strong. There is ample for-sale inventory, and the market offers many opportunities that are ideal for 1031 exchange buyers. Our team is very experienced in this arena, having completed 20 exchanges already this year. Finally, readers should know that Orange County is great place for both long- and short-term multifamily acquisition strategies.

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NEWPORT BEACH, CA—While the buyer pool for multifamily properties in Orange County remains diverse, buyers are becoming more aggressive in pursuing acquisition opportunities, Marcus & Millichap's senior managing director of investments Tyler Leeson tells GlobeSt.com. Leeson, along with VP investments Alex Mobin, recently represented the seller, a private investor, in the sale of Palm Gardens Apartment Homes in Tustin, CA, for $27.5 million or nearly $299,000 per unit. Leeson, Mobin and SVP investments in the firm's Long Beach office Steve Bogoyevac, procured the buyer, a private investor.

The transaction was Leeson's 37^th closed transaction year-to-date. We spoke with him about Orange County multifamily buyers are changing and what he sees in transaction volume going forward.

GlobeSt.com: How is the buyer pool for multifamily changing in Orange County in particular?
Leeson: I do not see the buyer pool necessarily changing. Orange County has traditionally had a very diverse buyer pool for multifamily product. While we've seen new multifamily syndicators and a lot of first-time buyers, the established area multifamily investors are still very active. What has changed is aggressiveness of buyers in pursuing acquisition opportunities.

GlobeSt.com: How are buyers gaining an edge in such a competitive marketplace?
Leeson: Buyers are gaining an edge by making offers non-contingent on signing, including no-loan contingencies and quickly paying higher-than-normal deposits. Buyers are also leveraging their relationships with multifamily owners in the area. Finally, buyers have been more willing to pay over the asking price in order to get an advantage.

GlobeSt.com: What do you see happening with transaction volume in this market over the next year or two?
Leeson: Demand for Orange County multifamily rentals is high, and class-B and -C inventory has not seen much growth since construction has focused heavily on class-A products. Vacancy levels remain historically low, providing a runway for continued rental improvement. These factors, along with an ample supply of lending sources and available capital will keep the market strong and highly competitive. I believe transaction volume will remain on par with current levels and that values will continue to rise.

GlobeSt.com: What else should our readers know about the Orange County multifamily market?
Leeson: I think it is important for readers to know that Orange County's multifamily market is strong. There is ample for-sale inventory, and the market offers many opportunities that are ideal for 1031 exchange buyers. Our team is very experienced in this arena, having completed 20 exchanges already this year. Finally, readers should know that Orange County is great place for both long- and short-term multifamily acquisition strategies.