Roundtable: Multifamily Investors Discuss What’s Ahead for 2021
While multifamily deal activity hit a pause at the start of the pandemic, transaction volume started to pick back up by the third quarter of 2020 and is expected to see a boost in 2021. According to Newmark’s “Multifamily Capital Markets Report,” multifamily investment sales volume saw a quarter-over-quarter increase of 55.9% in the third quarter, the strongest sequential gain since 2011.
“Multifamily sales volume was down 28% in 2020 versus 2019, according to Real Capital Analytics. However, activity rebounded significantly in Q4, making it one of the most active quarters in recent years,” says Lili Dunn, president at Bell Partners. “With the onset of the pandemic, we intentionally paused activity for about six months until there was better visibility on risk, underwriting, and pricing. By year-end, Bell closed approximately $1.2 billion in transactions, and we were able to exceed pre-COVID pricing levels on our disposition activity.”
Multifamily investment firms LYND and Rastegar Property Co. also reported strong performance for the overall year.