Multifamily Investment in U.S. Hits Record High Over Last Year
2015-09-10
According to research from CBRE, investment in U.S. multifamily reached $127 billion for the year ending Q2 2015 - the highest four-quarter total in history and growth of 36% over the 12-month period. The total surpasses the mid-2000s peak of $100 billion achieved in the year ending Q2 2006.
Investment in multifamily communities has been robust for several years and this trend continued during Q2 2015, with $30 billion flowing into the sector. The quarter's total reflects a 35% gain over Q2 2014, although a slight decline from Q1 2015 (-3%). Multifamily acquisitions represented 27% of the total $110 billion invested in U.S. commercial real estate in Q2 2015.
The Los Angeles-Southern California area attracted the most multifamily investment in H1 2015 at $5.3 billion ahead of Dallas/Ft. Worth ($3.0 billion), Washington D.C. ($3.0 billion), Atlanta ($2.8 billion), and Houston ($2.5 billion).
Cross-border investment in U.S. multifamily totaled $2.1 billion in Q2 2015 (not counting properties acquired through entity-level acquisitions). The H1 2015 total of $4.4 billion is already higher than the full-year 2014 figure of $3.7 billion. Mexico represented the largest country source of cross-border acquisition capital for multifamily investment (31%), due to a significant portfolio transaction, ahead of Canada (29%).
"Investment in U.S. multifamily product continues its extraordinary run, reflecting solid confidence in future market and asset performance. Drawn in by solid fundamentals, investor interest in the sector remains high, per sales activity and underwriting trends. Equity and debt investment volumes continued to rise, along with transaction sales prices. Cap rate declines have been minimal, which signal total projected investor returns are close to bottom," said Brian McAuliffe, Executive Managing Director, Institutional Properties, CBRE Capital Markets.
The Los Angeles-Southern California area attracted the most multifamily investment in H1 2015 at $5.3 billion ahead of Dallas/Ft. Worth ($3.0 billion), Washington D.C. ($3.0 billion), Atlanta ($2.8 billion), and Houston ($2.5 billion).
Cross-border investment in U.S. multifamily totaled $2.1 billion in Q2 2015 (not counting properties acquired through entity-level acquisitions). The H1 2015 total of $4.4 billion is already higher than the full-year 2014 figure of $3.7 billion. Mexico represented the largest country source of cross-border acquisition capital for multifamily investment (31%), due to a significant portfolio transaction, ahead of Canada (29%).
"Investment in U.S. multifamily product continues its extraordinary run, reflecting solid confidence in future market and asset performance. Drawn in by solid fundamentals, investor interest in the sector remains high, per sales activity and underwriting trends. Equity and debt investment volumes continued to rise, along with transaction sales prices. Cap rate declines have been minimal, which signal total projected investor returns are close to bottom," said Brian McAuliffe, Executive Managing Director, Institutional Properties, CBRE Capital Markets.
Source: http://www.worldpropertyjournal.com/real-estate-news/united-states/los-angeles-real-estate-news/multifamily-investment-report-2015-cbre-apartment-data-cross-border-real-estate-investment-multifamily-investors-peter-donovan-apartment-listings-9344.php
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