Private investors accounted for 82 percent of the dollar value of apartment acquisitions during the first three quarters of 2009, compared with just 37 percent at the peak of the market four years ago, according to Marcus & Millichap. The re-emergence of private, local buyers may represent the clearest signal yet that prices have adjusted to levels that can be sustained by current operations. Motivated by lower prices, these investors will continue to re-evaluate portfolios, using local knowledge and a hands-on approach to acquire properties with the potential to increase in value as a recovery accelerates. With other buyer groups less active, private, local investors are likely to conduct transactions on highly favorable terms, especially with motivated sellers.
Source: Marcus & Millichap Research Services Apartment Outlook