Pricing Stands Strong on Apartment Acquisitions

LOS ANGELES—The buyer pool for apartment properties has never been as competitive as today. What is key is to not only have relationships, but to come in strong and also have a good track record, and speed of getting deals done and doing due diligence early. That is according to panelists at the recent national GlobeSt. Multifamily conference in Los Angeles. 

According to Equity Residential’s Jim Alexander, on certain deals, the depth of the buyer pool is starting to thin out but the pricing is holding strong. “From our perspective, we want to stay competitive on the front end of the process and come in strong in our initial bids relative to what we have done in past cycles. Brokers are giving guidance and more often than not, pricing is going well past guidance.