Apartment Sales Hit $166B Thanks to Urban Demand in Northeast and West
Apartment sales volumes have risen modestly, with 1,910 properties trading hands for roughly $60 billion during the fourth quarter, according to a RealPage analysis based on MSCI Real Capital Analytics data. That represented a 4% increase from the same period last year and a 10% rise from the third quarter, when 1,870 properties sold for $46.5 billion.
The fourth-quarter transactions encompassed nearly 200,000 units at an average price per unit of $220,684. Apartment per-unit pricing has remained above $200,000 for 16 of the past 18 consecutive quarters, compared with a 2015–2019 pre-pandemic average of roughly $151,000. Cap rates for apartment sales averaged 5.55% in the quarter, above the pandemic-era low of 4.64% recorded in the second quarter of 2022.
For the full year, nearly $165.5 billion worth of apartment properties traded, encompassing 6,955 assets. That total reflected a 9% increase in sales volume from 2024 and a 14% rise in the number of properties sold. Among the largest single-asset market-rate apartment transactions during the fourth quarter, all five exceeded $200 million, highlighting sustained investor interest in major urban markets across the Northeast and West.
The largest acquisition involved Ascent in San Jose, purchased by Manhattan Beach-based Ethos Real Estate for nearly $323 million. The 650-unit community was sold by South Orange County-based Shea Properties for about $496,500 per unit. Built in 2016 within South San Jose, Ascent features a pool, resident lounge with a kitchen and game room, business center, fitness center and an outdoor lounge with a pizza oven.
In Seattle, Via6 traded for roughly $295 million, equating to about $451,700 per unit. The 654-unit two-tower complex in Downtown Seattle was purchased by Kirkland-based Weidner Apartment Homes from Pine Street Group. Built in 2013 for $200 million, Via6 includes a fitness center, bike shop, pet spa, chef's kitchen and onsite retail.
The third-largest deal involved Royal Crest Estates near Boston, which sold for $254 million or $432,000 per unit. Merrimack College partnered with Atlantic Management and Lupoli Cos. to acquire the 588-unit community adjacent to the college's North Andover campus. Built in 1970 and partially leased as student housing, the three-story development sits on a 76-acre site, with units averaging 1,173 square feet.
Stonehill at West Orange in Newark sold for approximately $220 million or $517,600 per unit. The 423-unit luxury community, completed in 2024 on a redeveloped office campus, features more than 44,000 square feet of amenities, including two fitness centers, coworking spaces, lounges, coffee bars and concierge services.
Rounding out the top five was Meriel Marina Bay in Quincy, Massachusetts. Boston-based GID acquired the 352-unit waterfront community from Houston-based Hines for $205 million or roughly $582,400 per unit. Built in 2017 and now rebranded Windsor Marina Bay, the property features a pool, seaside lounge, fitness center, clubhouse, entertainment lounge, playroom, kayak storage, bicycle repair station, dog park, gas barbecue grills and approximately 20,000 square feet of onsite retail.
Source: GlobeSt/ALM