WASHINGTON, DC-CB Richard Ellis’ Washington, DC Multi-Housing Investment team reports that of Oct. 31, 2010 sales of multi-housing properties in the Mid-Atlantic region has reached its highest level since 2007, surpassing the $1.2-billion mark in only 10 months and representing a three-fold increase over its entire volume of sales in 2009. The highest transaction volume occurred in the Maryland and Virginia suburbs of Washington, DC.

There are a number of reasons for the interest, explains Mike Muldowney, executive vice president in CBRE’s Washington, DC Multi-Housing Investment team, starting with the obvious ones of basic fundamentals of job growth and a constrained pipeline.

Also, seller and buyer expectations are more aligned here than in other parts of the country, Muldowney tells GlobeSt.com. “Sellers have decided to sell in this market because they most likely have a good bit of equity in their deals unlike deals in other markets,” he says. “They also know pent up interest from investors will lead to many offers that will push pricing to highest possible level.”

Some deals are starting to price in the low 4% cap rates--but only for the best-located and most luxurious properties, Muldowney says. Older properties in less desirable locations range from the 5s all the way to the 7s.

The best locations are multifamily properties on top of metro locations, but only in mature markets. A deal on the market in Prince George’s County at the Branch Street Metro Stop will probably price at the lower end, he says.