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Yahoo
5 days ago
- Business
- Yahoo
EQR to purchase 8 apartment properties for $535M
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. Number of properties: 8 Buyer: Equity Residential Seller: Withheld Property type: Garden style Units: 2,064 Location: Atlanta Total purchase price: $535 million Equity Residential recently agreed to purchase eight properties, totaling 2,064 units, in Atlanta for $535 million, according to an investor update released by the Chicago-based REIT last week. 'These well-located suburban assets complement our existing Atlanta portfolio and will allow us to achieve scale and diversification in the market,' EQR said in the update. The REIT funded the purchase, which is expected to close this quarter, by selling older assets in its existing coastal markets. 'We would expect these assets to be accretive to normalized [funds from operations] per share beginning in year two of our ownership period due to favorable supply/demand characteristics expected in Atlanta, along with realization of various operating initiatives,' EQR said in the update. EQR, like Arlington, Virginia-based AvalonBay Communities, has been focused on selling older assets in its coastal markets and redeploying the capital in high-growth Sun Belt metros of Atlanta, Dallas and Austin, Texas. 'We think our best opportunity [versus buying back stock and developing] continues to be investing in existing assets in these primary acquisition markets of Dallas, Denver and Atlanta,' CEO Mark Parrell said on EQR's earnings call in late April. 'We're still interested in Austin, but there's such a glut of supply, it's probably a little bit later for us to complete our portfolio there.' In the first quarter, Atlanta, Dallas and Austin performed as expected 'given the challenging operating conditions' caused by new supply, EQR Chief Operating Officer Michael Manelis said on the REIT's earnings call in late April. 'Denver's overall demand felt a little weaker than we would have expected in the quarter, which resulted in less pricing power,' Manelis said. EQR expects $1.5 billion of acquisitions and $1 billion of dispositions in 2025. 'When we gave guidance, we expected to transact very little in the first quarter, and that was the case,' Parrell said. Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.
Yahoo
28-05-2025
- Business
- Yahoo
Apartment sales volume jumps 20% to $9.2B in April
This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. Despite economic turbulence related to President Donald Trump's tariffs, apartment sales volume rose 20% year over year to $9.2 billion in April, according to a report that data firm MSCI Real Assets shared with Multifamily Dive. The RCA commercial property price indexes fell 1% YOY in April, according to MSCI. That was an improvement compared to a year ago, when values had fallen at a 7.3% annual pace. Garden apartment transactions rose by 4% to $5.2 billion in April. Mid- and high-rise property sales increased 50% YOY to $4 billion. Single-property sales, which drove the market in the first quarter of 2025, fell 2% to $6.9 billion in April. Portfolio and entity-level trades more than offset that decline by jumping 267% to $2.3 billion. Apartment executives are optimistic that the sales market will gain momentum as 2025 continues. 'The institutional sales market in the first quarter was reasonably busy, with volumes higher than a year ago, but still below pre-COVID volume levels,' Equity Residential CEO Mark Parrell said on the Chicago-based REIT's first-quarter earnings call in late April. 'Asset prices so far seem unaffected by higher rates and uncertainty.' Still, EQR maintained its guidance of $1.5 billion in acquisitions and $1 billion of dispositions in 2025. 'When we gave guidance, we expected to transact very little in the first quarter, and that was the case,' Parrell said. Essex Property Trust made $345 million in acquisitions in Northern California, which were funded by dispositions in Southern California. However, Rylan Burns, executive vice president and chief investment officer at Essex, noted that bidding was aggressive in the firm's West Coast markets. 'We're trying to be prudent and take swings where we see a fat pitch,' Burns said. 'Since April 2, there have been limited data points, but the feedback from the brokers and several deals we're tracking is that there's really been limited changes in terms of market participation.' Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
