Q4-2017-MultifamilyReport
CAPITAL MARKETS
BOSTON SALES VOLUME ($)
PROVIDENCE SALES VOLUME ($)
SPRINGFIELD / WORCESTER SALES VOLUME ($)
TOTAL SALES VOLUME ($)
NOTABLE TRANSACTIONS
JEFFERSON APARTMENT GROUP
TAURUS INVESTMENT HOLDINGS, LLC
BUYER
PGIM REAL ESTATE
WESTBROOK PARTNERS CHARTWELL HOLDINGS
ADDRESS
99 Kneeland Street
1 Upland Woods Circle
500 Broadway
660 Ocean Avenue
1220 Adams Street
Boston Metro - Sales
TOWN
Boston
Norwood
Malden
Revere
Dorchester
$250,000
$4.0
# OF UNITS
217
262
295
194
133
$3.5
$200,000
SALE PRICE
$144,500,000
$93,000,000
$71,000,000
$59,850,000
$35,200,000
$3.0
$2.5
$150,000
$2.0 BOSTON METRO SALES Boston Metro - Sales
TRENDS
$100,000
$1.5 In Billions $4.0
$250,000
• Both locally and nationally, multifamily assets remain a favorite among investors. In 2017, more than $3.4 billion in assets changed hand in the Boston metro. This volume level represents a 4.3% increase from the previous year and a slight decrease from the 2015 peak. The median price-per-unit also continues to rise; reaching $207,206/unit in the fourth quarter of 2017. • In November, Lone Star Funds sold a portfolio of 25 multifamily properties to Harbor Group International for $1.8 billion. The sale included the Gardencrest Apartments in Waltham, which garnered an allocated price per unit of $298,000. • The Providence metro clocked in more than $109 million in multifamily investment sales in 2017. Pricing has also climbed since 2012, with the median price per unit ending the year at $64,500. Affordable Housing and Services Collaborative’s acquisition of a 64 unit low-income apartment building in Taunton for $2.7MM marks the largest transaction of the quarter. • In the Springfield/Worcester metro, more than $113 million in multifamily assets changed hands in 2017, and the median price per unit increased to $68,750. The largest transaction of the fourth quarter 2017 here was a 36 unit apartment complex that sold for roughly $3.5MM or $96,000 per unit. • Cap rates for Class A product in the Boston metro remain low; ranging from high-3% to low-5% during the fourth quarter of 2017.
$1.0
$3.5
$50,000
$200,000
$0.5
$3.0
$0
$0.0
$2.5
$150,000
2012
2013
2014
2015
2016
2017
$2.0
Total Volume ($)
Median $/Unit
$100,000
$1.5 In Billions
$1.0
$50,000
$0.5
$0
$0.0 Boston Metro - Sales
2012
2013
2014
2015
2016
2017
$250,000
$4.0
Total Volume ($)
Median $/Unit
$3.5
Providence - Sales PROVIDENCE SALES
$200,000
$3.0
$70,000
$120.0
$2.5
$150,000
$60,000
$100.0
$2.0
$100,000
$50,000
$1.5 In Billions
$80.0
$40,000
$1.0
Providence - Sales
$50,000
$60.0
$0.5
$30,000
$70,000
$40.0 In Millions $120.0
$0
$0.0
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017
$20,000
2012
2013
2014
2015
2016
2017
$60,000
$100.0
$20.0
$10,000
Total Volume ($)
Median $/Unit
$50,000
$80.0
$0
$0.0
$40,000
2012
2013
2014
2015
2016
2017
$60.0
$30,000
Total Volume ($)
Median $/Unit
$40.0 In Millions
Q3 2014 Q4 2014 Q1 2015 Q2 20 5 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017
$20,000
Springfield/Worcester - Sales SPRINGFIELD / WORCESTER SALES
$20.0
$10,000
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000
$120.0
$0
$0.0 Providence - Sales
$100.0
2012
2013
2014
2015
2016
2017
$70,000
$120.0
Total Volume ($)
Median $/Unit
$80.0
$60,000
$100.0
$60.0
$50,000
$80.0
In Millions
$40.0
$40,000
$60.0
$20.0
$30,000
$40.0 In Millions
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
$20,000
$0.0
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017
2012
2013
2014
2015
2016
2017
$20.0
$10,000
Total Volume ($)
Median $/Unit
$0
$0.0
2012
2013
2014
2015
2016
2017
Total Volume ($)
Median $/Unit
www.naihunneman.com
303 Congress Street Boston, MA 617.457.3400
5
Made with FlippingBook flipbook maker