WASHINGTON, DC-After a dearth of activity, multifamily sales in the DC area are rapidly mounting, with at least close to $200 million in transactions having closed in the last several weeks, according to sources -– and other several million more in the pipeline.
Most of the deals have been unannounced – and thus far, unrecorded. Transwestern’s Scott Melnick tells GlobeSt.com that he and colleague Al Cissel have closed some $75 million – across four separate transactions – over the last several weeks; three of these were in the DC suburbs and one in North Carolina. Furthermore they have several other deals under contract. “There is a lot more intensity from buyers now, than at the beginning of the year,” Melnick says.
“Over the last 30 days a tremendous amount of deals have come about,” Drew White, senior director at Cushman & Wakefield’s Capital Markets Group, tells GlobeSt.com. “We are also seeing heavy offer numbers – 20, 30 offers per deal.” Cushman & Wakefield, for its part, has about $100 million in transactions it hopes to close soon, White says.
At least one of the deals that has closed recently – in the neighborhood of $100 million – has been pending for more than a year, according to Grant Montgomery, vice president – Director of Apartment Practice for Delta Associates. There was another large deal as well that closed, he adds – both of these transactions were in Northern Virginia.
Montgomery is cautious in his projections that multifamily sales will continue along this track. “There is more pre sale activity now, especially when you compare to where we have been recently,” he tells GlobeSt.com. “So I would say there will be an uptick in sales activity over the next 12 months — but I wouldn’t venture to predict the volume – there are still too many variables out there.”