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Multifamily investment sales are down 31% for the year in Orange County, compared to 2017. The decline in investment activity is due to a lack of availability of deals and opportunities in the market. This year, only 10 properties over $15 million have traded hands in Orange County, and as a result, properties that do come to market see multiple offers and strong pricing. Sundance West Apartment Homes, for example, recently came to market, receiving 15 offers and $500,000 over the asking price. With limited opportunities, this is becoming the standard for the market.

“Year-to-date 2018 sales volume is 31% less than at this time last year. The reason for this decline is not for lack of buyer interest—it is just that inventory levels are at near historic lows,” Peter Hauser, a principal at Avison Young and a broker on the Sundance West Apartment Home deal, tells GlobeSt.com. “To provide some perspective, so far this year, Orange County has only seen a total of 126 apartment sales. This total includes 90 sales on assets ranging in size from 10 to 50 units, 19 sales ranging from 51 to 150 units and 17 sales from 150 units on up. That is a small percentage of the approximately 3,400 total apartment properties (with 10-plus units) in the county.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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