Apartment sales continue to skyrocket

Commercial apartment sales are on the rise.

American commercial property management companies witnessed a boom in apartment sales during the first quarter of the year, according to a report from Real Capital Analytics.

The report showed that apartment sales rose 31 percent year-over-year, Multifamily Executive reported. Garden properties led the way in sales, as they totaled $7.1 billion in sales. Furthermore, sales of high-rise properties increased by close to $5 billion. There was also $2.6 billion in portfolio sales volume.

Distressed properties made up 13 percent of all transactions during the quarter, the report noted. This was 9 percent higher than the fourth quarter's figure, but still below the 25 percent market saturation witnessed during 2011. Total sales during the fourth quarter equaled $1.5 billion.

"[This is] a nearly complete recovery from the financial crisis, although yields are still higher than during the condo conversion frenzy that ended in 2006," the firm noted, according to the news source.

The news source added that volume trends have remained about the same for many markets, but cap rates have been different across the nation. 

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