Less apartments are selling and yet overall transaction dollar volume continued to rise, according to RealPage analysis using MSCI Real Capital Analytics data. Approximately 1,680 properties traded hands during the quarter (down three percent from the previous three months), totaling $43.8 billion, a 21% increase from $36.2 billion in the second quarter. Year-over-year activity was up 13%, though total volume remains below the five-year quarterly average of $55.6 billion.
For the year ending Q3, 6,717 apartment properties changed hands for more than $159.9 billion, marking a 23% increase in sales volume and a 22% rise in the number of properties sold. The average price per unit rose 7% quarter over quarter and 3% year over year to $227,167, remaining above $200,000 for 15 of the past 17 quarters. Before 2021, per-unit pricing averaged around $151,000.
Cap rates also ticked upward, rising 13 basis points to 5.63%, the highest level in over eight years, though still the lowest among major property types, keeping apartments an attractive investment.
High-profile, single-asset transactions dominated the market. The largest sale was New York’s 800 Fifth Avenue, a 208-unit Upper East Side tower purchased by Naftali Group for $810 million, nearly $3.9 million per unit. The developer plans to replace the 1979 building with a high-end condominium tower, transforming a legacy rental property.
In San Jose, the Park Kiely apartment complex sold for $370 million to Standard Communities and The Vistria Group, the second-largest U.S. apartment transaction in Q3. The 948-unit garden-style community will be converted to serve households earning up to 80% of the area's median income, with more than $19 million planned for renovations.
Other notable deals include Oriana in New York City. This 412-unit Midtown East high-rise sold for $367.5 million ($891,900 per unit) to StepStone Real Estate, with plans to upgrade amenities, including rooftop lounges, fitness areas and recreation spaces. Riverbank in New York City is a 418-unit Midtown West property purchased by J.P. Morgan Investment Management for $243.5 million ($582,500 per unit), featuring pools, coworking spaces and entertainment areas. And 101 Via Mizner in West Palm Beach, a 366-unit community acquired by Cardone Capital, traded for $235 million ($642,100 per unit), with potential condo conversion under consideration.
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