Transaction Trends in Small Multifamily Assets
- A high percentage of U.S. multifamily inventory is in small properties, and a significant percentage of multifamily renters live in small properties. In the capital markets world, investment in and financing of smaller assets is very active.
- Small assets (five to 50 units each and $10 million or under in sales price) represented a moderate 9% of total multifamily sales volume in 2018 (through August), but 39% of all transactions.
- Sales volume for full-year 2018 is expected to exceed the nearly $12 billion annual average of the past three years.
- Total transactions volume year-to-date is 4.5% higher than last year.
- Small assets tend to be older properties that generally have high occupancy levels.