Deals in excess of $40 million stirred to life in Q3 2009, after laying dormant for the first half of the year, according to Marcus & Millichap. The cautious return of large investors may signal a shift in strategies from wait-and-see to bargain-hunting. Values have dropped sufficiently to encourage these investors to resume acquisitions rather than risk missed opportunities by attempting to time the absolute bottom of the market. Activity by institutions remains subdued, though, representing only 4 percent of the dollar volume of properties purchased in 2009. As recently as 2007, institutions accounted for 36 percent of the acquisition volume, but they have since moved to the sidelines in response to the credit market freeze and concerns over deteriorating property performance.
Source: Marcus & Millichap Research Services Apartment Outlook