Crunching Bay Area Multifamily Sales Data

Chewing through some multifamily sales data this morning, I compiled these simple charts to break down 2011 sales into price buckets. No real surprises here, other than to highlight that by both sale price and unit count, $1-3 million buildings dominant the apartment building space in the Bay Area. If you take out one large sale in San Jose last year, these smaller buildings actually came in at a higher total sale price than the $20M+ bucket. Of course, there are many more small buildings (under $1M), but thy came in at half the sale price as the $1-3M bucket.

This market remains extremely tight. Even remotely well-priced properties are seeing multiple offers, cap rates are compressing back to pre-bubble levels and rents are going through the roof in many Bay Area markets. It feels frothy … but the residential market also felt frothy in 2004 and 2005. It didn’t crack until 2006. To quote Keynes, “Markets can remain irrational longer than you can remain solvent.”

MFR Sales Bay Area 2011 sale price Crunching Bay Area Multifamily Sales Data

MFR Sales Bay Area 2011 count Crunching Bay Area Multifamily Sales Data

Here is the raw data I used, which I pulled from tax records. It took some scrubbing and a manual pivot table (if you will), but once exported it was quite simple.

MFR Sales Bay Area 2011 raw data Crunching Bay Area Multifamily Sales Data

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About Andrew Jeffery

Andrew is Co-Founder and Chairman of Cirios. Prior to founding Cirios, Andrew worked for seven years in New York in the mortgage finance business, managing a $500 million lending facility at The Winter Group, a mortgage investment company. Andrew is a published author, whose work has appeared in the Wall Street Journal, Bloomberg, Minyanville and HousingWire.Andrew is responsible for managing the Cirios investment portfolio.Andrew holds a degree in Economics from UC San Diego and is an avid trail runner.

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5 thoughts on “Crunching Bay Area Multifamily Sales Data

  1. Andrew Jeffery Post author

    I am not smart enough to know what will happen in 2014 (or 2015). All I know is that the only way you lose money owning real estate is by selling. So just make sure you never have to sell …

  2. Andrew Jeffery Post author

    Fair enough … just make sure there are no meth labs in your building!

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