From Yahoo Finance: 2025-03-27 11:39:00

Apartment sales volume reached $7.5 billion in February, marking a 7% year-over-year increase, according to MSCI Real Assets. Cap rates rose 20 basis points to 5.6% compared to February 2024. Garden apartment cap rates rose to 5.6%, while mid- and high-rise apartment cap rates reached 5.4%. Mid- and high-rise apartment sales surged 32% year-over-year.

Individual asset sales in the apartment market have grown by double digits for five consecutive months, reaching $6.9 billion in February. However, portfolio and entity-level sales dropped 45% year-over-year to $631 million. Apollo Global Management’s acquisition of Bridge Investment Group Holdings for approximately $1.5 billion may boost numbers later in the year.

Despite potential for more mergers and acquisitions among smaller REITs, economic uncertainty could impact the sales market later in the year. Thomas Henry of Fogelman Properties anticipates post-peak conditions to support better rent growth and occupancy gains. Sellers may adjust pricing, offering opportunities for well-capitalized buyers to secure quality assets.



Read more at Yahoo Finance: Apartment sales increase 7% to $7.5B