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Thursday, 10 August 2017

Ten-X Identifies Top-5 Buy, Sell Apartment Markets

Investors looking to purchase apartment properties in the United States may want to focus on non-major markets in the South and West that have enjoyed strong employment growth and haven't faced surges of new supply. Sacramento, Calif., tops a list of markets compiled by Ten-X Commercial with the best prospects for investors, while New York is at the top of "Sell" list.

Commercial Real Estate Direct Staff Report

Investors looking to purchase apartment properties in the United States may want to focus on non-major markets in the South and West that have enjoyed strong employment growth and haven't faced surges of new supply.

Those markets would include Sacramento, Calif., Phoenix, Las Vegas, Raleigh-Durham, N.C., and Jacksonville, Fla., which Ten-X Commercial has identified as the top five for investors.

"They're seeing less development than they have historically and relative to other markets," explained Chris Muoio, senior quantitative strategist at Ten-X, an Irvine, Calif., property-sales platform. "This lower development level is keeping vacancies on the decline and allowing stronger rent growth."

On the flip side, New York, San Francisco, San Jose, Calif., Washington, D.C., and Oakland, Calif., are each markets facing substantial construction, contributing to concerns of increasing vacancies are decreasing rents. Ten-X places them atop its list of "sell" markets.

"There's a lot of supply going up in these markets," Muoio said. "These markets are also in a position where population growth is starting to decelerate. We're a little worried that absorption rates may cool off slightly as developments come into the market, creating this situation where vacancies rise in the near-term and soften fundamentals."

In Sacramento, Ten-X expects rents to increase 17.3 percent to...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

MOODY'S/RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

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