With the continuing “desuburbanization” and the Millennials’ preference for simpler uncluttered life, multifamily remains the most popular investment strategy for private real estate firms. Multifamily takes 34% of the total market share among the five most popular real estate product types (office is the second most popular at 22%).
Our analysis of private real estate funds investing in multifamily assets point to a steady activity in the performance of real estate private capital with multiple positive trends. For multifamily real estate offerings total offering amount stands at approximately $3.2 billion as of December 31, 2015 across 330 real estate private placements (almost half (!) of all deals analyzed). Total offerings stayed at a steadily high level in each of the past four quarters and average capital commitments rate has been rather high at 51% in the last quarter of the year.
Total deals filed and $ capital advertised for all multifamily real estate private placements offer a gauge of the industry’s investment health. Multifamily product type has been very active with around $3 billion per quarter being raised. Total offerings in Q4 2015 increased a staggering 185% compared to Q3 2014.
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