LOS ANGELES-GlobeSt.com has learned exclusively thatmultifamily investors are making an aggressivepush westward into Seattle, Phoenix, Los Angeles and San Diego,according to Jones Lang LaSalle’s third-quarter2012 West Coast Multifamily Outlook. As a result of the positivemomentum from the falling unemployment rates and increase inrental and occupancyfundamentals, these target cities witnessed atotal combined multifamily transaction volume of $4.6 billion as ofSeptember.

Seattle remains high on the list of target cities formultifamily investment. According to David Young,managing director of Jones Lang LaSalle in Seattle, “Over the nextthree years, we expect the apartment sector inSeattle to outperform much of the US, keeping Puget Sound front andcenter on investors’ radar. The Seattle area will have slow butsteady growth in the coming year, as increases in gas prices andlower cost of living keep migration focused around the urbancore.”

Seattle’s transaction volume year-to-date is up to $1.03billion. Private-equity buyers have fueled more than half of thetransactions, accounting for 57% of the investor composition,followed by institutional capital at 23%. In the past year, theSeattle metro has added 13,800 jobs.

Phoenix ranks third in the nation in terms of total dollarvolume of sales, and year-to-date is up nearly 55% over 2011 at$1.65 billion. In the past year, the Phoenix metro has added 33,000jobs. According to John Cunningham, EVP ofJLL in Phoenix, cap rates have fallen an averageof 30 basis points here since 2011. Private investors havedominated the 2012 acquisition landscape and should continue toplay an integral role in 2013. Rental demand has been strong, andvacancy has plummeted from its peak in 2009. New deliveries havebegun to enter the market, yet absorption is strong while overallrental rate continues to increase.

Apartment fundamentals have improved in LosAngeles with consistent gains since 2009. The apartment sector isexpected to continue rebounding as economic growth moves at amodest pace with renting a more favorable option overhomeownership. In the past year, Los Angeles hasadded 6,100 jobs. According to Joe Leon, managingdirector of JLL in Los Angeles, “Los Angeles continues to be highon investors’ lists as it continues to recover. It currently ranksfifth in terms of total dollar volume of multifamily sales, with$1.47 billion in multifamily transactions year-to-date 2012. We’reseeing developers and owner/operators continue to be the dominantforce in the transaction market, making up nearly three-quarters ofthe investor composition.”