Apartment properties built after 2017 have dominated US multifamily transactions in 2023 and 2024 due in part to a flight to quality as investors transition to core and core plus strategies.
Buyers have been favoring newer assets that often feature modern amenities and energy-efficient designs that attract both tenants and investors in hopes they will generate stable and predictable cash flows and contribute to higher transaction volumes, according to Berkadia's quarterly CRE market update for October.
At the same time, sellers have been motivated to dispose of newer assets for several reasons, including liquidity needs, end of fund life, the need to achieve broader business goals and loan maturities, said the report. Merchant builders have been selling when lease-ups are slow or costs too high.
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