While there is lingering concern about rent payments in the apartment sector, it is clear that many multifamily properties are trading at pre-pandemic pricing.
Need proof? Look at Equity Residential's recent sale of Vantage Pointe, a 679-unit apartment property located in downtown San Diego.
EQR sold the property for approximately $312.5 million at a disposition yield of 4.1%, which generated a preliminary unlevered IRR of 8.8% over the REIT's ten-year ownership period. Mark J. Parrell, Equity Residential's President and CEO, said that the company sold the asset at the price it had ascribed to it before the pandemic.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
