2nd Quarter Report
July 10, 2024 – Bloomfield Hills, MI
IPO is pleased to announce our 2024 Second Quarter multifamily investment sales. Further overview statistics and a current market outlook are shared below.
The YTD transaction level has been muted due to continued adjustments to higher interest rates. Values are down from peak levels but still strong in many markets. Deals are still getting done as operating fundamentals are outstanding and the cost of capital is still reasonable from a historical perspective.
- Q2 closed with over $78M in transactional volume
- IPO’s expansion continues in Kentucky with first closing
- 14 multifamily sales transactions; reflecting over 860 units in total
Notable Transactions:
Glengarry Park, Waterford, MI: 300 units, $31,350,000
Golfview, Sterling Heights, MI 100 units, $14,500,000
Jefferson Place, Fortville, IN 50 units, $7,300,000
Lockwood of Davison, Davison, MI 191 units, $6,250,000
Ballpark Apartments, Lexington, KY 18 units, $1,083,300
The price discovery phase that the market has been in for the last 18 months is starting to crystallize. As sellers adjust to lower valuations, we are seeing transactional volume pick up steam. Our current pipeline includes over 30 pending transactions. Many perspective buyers that have been waiting on the sidelines for a big drop are starting to adjust expectations as well. The sentiment among active buyers is that current market conditions are perhaps as optimal for purchasing as they can reasonably expect. Thus, we are seeing an uptick in activity on both sell and buy side.
Many owners refinancing in 2024 or 2025 are no longer expecting to be bailed out with drastic rate cuts by the Federal Reserve. With bank lending significantly more restricted, it is likely transactional volume will pick up even further as the year progresses into 2025. The overall continued strength of the underlying operating fundamentals make multifamily the best place for real estate investment capital, even in a tougher market cycle.
IPO is a multifamily brokerage firm that is made up of nimble and creative problem-solvers who navigate deals in challenging landscapes. We strive to be the best brokerage in the apartment industry and show this in everything we do. Our goal is to build partnerships that stand the test of time, deliver significant value for our clients, and in the process, create generational wealth. We would like to thank our clients for entrusting us with your multifamily investment brokerage needs. As you plan for 2024 and 2025, contact us and let us know how we can help you with any important investment decisions.