Oct
26
Written by:
Apartment REP
10/26/2010 1:23 PM
The Raleigh-Durham-Chapel Hill or “Triangle” investment apartment market has certainly heated up in comparison to 2009’s dismal performance. So far this year 25 apartment communities have sold for more than $428,200,000 compared to only 21 sales and $279,783,000 in all of 2009. That’s a 53% increase with more than 2 months left to go!
But that’s not the story. THE STORY is how the Class “A” apartment communities have totally dominated 2010 investment sales in the Triangle. Consider this:
• 44% of the total communities sold so far this year have been Class “A” deals
• Class “A” deals make up 76.7% of the total YTD sales $’s
• Class “A” deals comprise 54.1% of the total YTD 2010 units sold
• Because of the Class “A” deals, the $83,178 average price per unit for ALL Triangle apartment sales in 2010 is 37% higher than it was in 2009
• The 2010 Class “A” average price per unit YTD is 25.2% higher than it was in 2009
Average Class “A” CAP rates are 15.1% lower YTD than they were in 2009, and have compressed the average CAP rate for all 2010 apartment sales by 5% from 2009.
There are two significant takeaways from these facts: With apartment interest rates at all-time lows,
1. If you have a Class “A” apartment community and you’re considering selling, now is absolutely the best time to sell with the voracious demand the market is experiencing, and
2. Class “A” apartment sales and improving market fundamentals are influencing demand for “B” and “C” communities and it’s an equally beneficial time to sell them too.
Call Apartment REP if you would like to confidentially explore what your apartment community might be worth in today’s market. As apartment specialists who breathe, eat and drink only apartments we maintain encyclopedic market knowledge and a proprietary database that will be harnessed to achieve your objectives.
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