Private Buyers Spur Apt Sales Velocity

According to a national multifamily report from Marcus & Millichap, a significant volume of dry powder capital has accumulated on the sidelines, which is expected to flow back into the multifamily sector amid positive trends.

Sales velocity gained momentum in the second half of last year, with private buyers active in the sub-$10 million tranche, accounting for the majority of closings. The category forward may gain momentum in both the secondary and primary markets as institutional-level activity responds to improved operational conditions.

A 290-unit portfolio to sell in the East Bay and several other properties that have traded or are anticipated to be awarded to the firm during the second quarter, including multifamily assets in California's San Jose, Salinas, Manteca, and Mountain View.

Robert Johnston said buyers trading from smaller properties into larger, high-quality legacy assets has become a trend.

“Investors are demonstrating that they have confidence in real estate as a protection against inflation as compared to competing markets with elevated volatility,” Robert Johnston added.

Oakland Sale Among Top Q1 Deals

Here are some of Levin's top deals in the first quarter — with an Oakland sale leading the way.

• The sale of an eight-property multifamily/retail portfolio in Oakland for $32.25 million to a private buyer on behalf of Chicago-based debt fund Heitman.

• Negotiating the trade of a 48-unit multifamily community in San Jose in an all-cash deal for $18.9 million.

• Closing the $12.7 million sale of a 12,419 square-foot retail building in Berkeley purchased by restaurant chain Raising Cane’s for a new flagship restaurant.

• Directing the acquisition of a two-tenant, 19,102 square-foot medical/retail building in Monterey.

• Purchasing an office property and a building that houses the Los Altos Town Crier and a restaurant, all in Los Altos.

LA Industrial Values Likely to Increase

Particularly, in Los Angeles, Crexi Director Shanti Steinkirchner told GlobeSt.com, “While the broader market waits for clarity on tariffs, Los Angeles’ port warehouses have seen some uncertainty among long-term tenants that heavily rely on imports, particularly from China.”

Despite this, Crexi data shows that both asking and sold prices per square foot have increased for three consecutive quarters, and vacancy rates have fallen to their lowest point since Q3 2021.

This suggests a rebounding demand for existing industrial space, likely due to limited deliveries over the last 18 months and the potential impact of new construction from California Assembly Bill No. 98, which regulates properties larger than 250,000 square feet.

“As such, existing Los Angeles industrial values are likely to increase, remaining attractive to investors with capital reserves,” Steinkirchner said. “At the same time, upcoming infrastructure projects—driven by wildfire recovery efforts, the World Cup, and the 2028 Olympics—are expected to fuel continued industrial demand in the region.”