Multifamily transaction volumesCurrently outpacing 2015’s record-setting volumes

The multifamily momentum continues to roll

Transaction volumes in the first half of 2016 reached $68.2 billion – currently outpacing 2015’s record-setting year.

3.5 percent increase YTD. $30.6 billion in Q2

4.4 percent national average cap rates continue to compress

While the sector as a whole is strong and resilient, several

factors are propelling the sector to reach new investment volume

highs.

1. Mid- and high-rise product

Mid- and high-rise activity in secondary markets is up 56.7 percent year to date, especially for new product located in Central Business Districts (CBDs) and near transit.

“Strong demand for mid- and high-rise trophy assets and limited supply in the core markets, coupled with compressed yields has been a continuing factor in the capital migration into secondary markets.”

Managing Director Scott LaMontagne JLL Capital Markets – Austin

The Catherine

High-rise property in Austin’s SoCo submarketAustin, TX | Investment sale300 units | Ultra-luxury apartment building

Mid- and high-rise productRepresentative transaction

Secondary markets

OrlandoDiverse economies and attractive pricing is luring investors to top secondary markets. Consider Orlando, where job growth over the next five years is projected to increase 13.4 percent – the most among any metropolitan area in the country. (Source: Moody’s Analytics)

2.

“A diverse job base including healthcare and education, lower cost of living, strong infrastructure investment and high quality of life is fueling Orlando’s multifamily market. People are not going there just for tourism – it’s where they want to live.”

International Director Jubeen VaghefiJLL Capital Markets – Orlando

Transit-oriented

Whether it’s convenient access within a dynamic urban core or connectivity from the suburbs to major employment hubs, there continues to be high liquidity for multifamily properties located near mass-transit.

3.

Transit-oriented

“In Los Angeles, public transit ridership on the Metro’s expo line is up 50 percent year-over-year – what is now considered transit-oriented has expanded and proximity to these stations is an important amenity. Residents and investors alike will continue to seek out transit-oriented apartment properties.”

Senior Vice President Javier RiveraJLL Capital Markets – Los Angeles

Ballpark VillageIDEA1

Transit-oriented

Mixed-use project in San Diego’s East VillageSan Diego, CA | Joint venture and construction financing 259 units | 13,000 square feet of commercial space

Multifamily development in the Ballpark DistrictSan Diego, CA | Investment sale37 stories | 446 units | 400 feet tall

Representative transactions

Single-market portfolios

Sunbelt marketsSingle-market focused offerings increased 32.3 percent year-to-date. Value-add and garden-style assets in Sunbelt markets led gains while Phoenix saw nearly $300 million in such activity.

4.

Single-market portfolios

“Investors are interested in value-add and core opportunities in growth markets with a strong, diversified employment base. In addition, the high cost of new construction supports the strategy to reposition existing product.”

Executive Vice President John CunninghamJLL Capital Markets – Phoenix

Want to learn more about the latest multifamily investment activity?

www.us.jll.com/multifamily

Or contact one of our experts

Scott LaMontagneManaging Director, JLL Capital Markets

Jubeen VaghefiInternational Director, JLL Capital Markets

Javier RiveraSenior Vice President, JLL Capital Markets