Small asset purchases in multifamily sector on pace to exceed annual average since 2010

There were 1,531 small property acquisitions in first half of 2019, representing 36.7 percent of all multifamily asset purchases and revealing the scope of small asset buying, according to CBRE. However, this purchase count is conservative since a notable number of transactions were under $2.5 million and therefore not included in the total.

The percentage of small asset purchases in 2019 is on pace to exceed the 35 percent annual average since 2010. The expected gain is attributable to several factors, including healthy property market fundamentals, investors’ search for new investment opportunities, new buyers entering the market and attractive financing options.

Based on dollar volume, small asset investment seems modest at 7.8 percent of total multifamily investment in first half of 2019. But given the very large total volume of multifamily acquisitions, this percentage is quite significant.

Investment on track to exceed $12b

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