Where is Your Next Buy?
Below are two charts, one for under 100 units and one for over 100 units. They depict how many complexes haven't sold in the trailing 3 years for each category of market rate and affordable housing in six of the major Florida markets we work in. Why 3 years? Because it is a little more difficult to buy an apartment complex for terms that work from a seller that purchased the deal within the last 36 months, assuming the asset was purchased at market value within that period.
Looking at the charts below, for example, if you were wanting to buy a 100+ unit market rate apartment complex in Tallahassee, there are only 35 complexes left to buy. That’s it, only 35! This is a direct result of the fact that for the 100+ unit sale arena, 8.89% of inventory has sold per year for the last 3 years straight (5.50% per year for under 100 units). Selling at that pace adds up pretty quickly.
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