Apartment Transactions Ease in 2025’s 1st Quarter

U.S. apartment transactions eased during the first three months of 2025, following historical trends. However, on a year-over-year basis, apartment sales (total dollar volume, number of properties, number of units and price per unit) were up.

There were some notable sales during 1st quarter, with five apartment communities trading for more than $180 million.

Roughly 1,277 apartment properties changed hands at a value of $30 billion during 1st quarter 2025, according to MSCI Real Capital Analytics. Overall sales volumes were up 36% year-over-year but were well below 4th quarter 2024 levels when around 1,848 properties changed hands for nearly $48.2 billion. In addition, recent activity was well below the $53.6 billion quarterly average over the past five years.

The average price per unit remained high at $211,356 in 1st quarter, registering above $200,000 for 13 of the past 15 consecutive quarters. Prior to 2021, the per unit pricing never exceeded that threshold and averaged $151,000 from 2015 to 2019. Meanwhile, cap rates have been rising since reaching a pandemic-era low of 4.67% in 2nd quarter 2022. For apartment transactions occurring in 1st quarter 2025, cap rates averaged 5.65%, the highest in nearly nine years. Still, apartment cap rates during 1st quarter 2025 remained the lowest among major property types, keeping the asset class an attractive commercial real estate investment.

On an annual basis, transactions in the year-ending 1st quarter 2025 totaled nearly $157.7 billion with 6,078 properties trading hands. That total sales volume was up 36% from the previous 12-month period, while the number of properties sold was up 8%. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,300 apartment communities were sold for $148.3 billion. That was well below the volume from 2019, when nearly 9,100 properties traded hands for $195.1 billion. In 2021, transactions jumped up due to pent up demand following the onset of the pandemic, with roughly 13,400 properties trading hands at a value of roughly $359 billion, nearly double the 2020 level on both accounts.

Among the five largest single-asset market-rate apartment transactions during 1st quarter 2025, all sold for more than $180 million. The Northeast and West regions each had two of those transactions, while one was in the South.

Park 12

The largest single-asset market-rate apartment transaction during 2025’s 1st quarter was the sale of Park 12 in San Diego. San Diego-based MG Properties acquired the 718-unit apartment community from Charleston, SC-based Greystar for $309 million, or about $430,400 per door. It was one of the largest apartment transactions in the city's history. The 35-story building, which Greystar completed in 2019, sits on 3.5 acres off Park Boulevard and Imperial Avenue near Petco Park within the Downtown San Diego/Coronado submarket. The community features a clubhouse, fitness center, business center and two swimming pools, plus 43,000 square feet of retail space.

Altitude Apartments

Rockpoint, a Boston-based real estate private equity firm, purchased the Altitude Apartments in the Boston area from Metropolitan Properties, a full-service real estate investment firm also based in Boston. The apartments traded hands at the end of March for $268 million, ranking as the second-largest apartment transaction in the U.S. during 1st quarter 2025. The sale price for the 919-unit project, which was completed in 1970, came to roughly $291,600 per unit. The development previously traded in 2007 for $181 million. The eight-story community with 13 buildings sits on 41 acres off Kennedy Drive near US-1 in Malden. The property is about 10 minutes north of downtown Boston within the East Middlesex County submarket. Amenities include a fitness center, yoga studio, basketball courts, swimming pool, tennis court, billiards, theater room, conference room and resident lounge.

8001 Woodmont

The third-largest apartment transaction to take place in the U.S. during 1st quarter was the sale of a Washington, DC asset. In late February, Fairfax, VA-based Peterson Companies acquired 8001 Woodmont in Bethesda from Bethesda, MD-based JBG Smith Properties. The 322-unit development sold for approximately $194 million, or roughly $602,500 per unit. JBG completed construction on the 17-story building in 2021. The community, which is about seven miles north of Washington, DC, features a clubroom, heated outdoor pool, fitness center, rooftop terrace with grills, entertainment kitchen and 24-hour concierge. In addition, the ground floor has nearly 19,600 square feet of retail space anchored by Trader Joe’s and Orangetheory Fitness.

Teresina

New York-based TIAA-CREF purchased the Teresina apartments in the San Diego market in mid-January from Chicago-based Equity Residential. The community, which was built in 2000, traded for roughly $183 million, the nation’s fourth-largest apartment transaction during 1st quarter. The sales price for the 440-unit community came to about $415,900 per door. The apartments previously traded hands in 2007 for $91.2 million. The nine-acre property at 1250 Santa Cora Ave. is within the Chula Vista/Imperial Beach submarket and part of the Otay Ranch master-planned community. The Teresina apartments feature a fitness center, two swimming pools, gas grills, a playground and a courtyard.

The Kendrick

Ranking as the fifth-largest apartment transaction in the nation during 1st quarter was the sale of The Kendrick in the Boston market. In mid-March, Pennsylvania-based Toll Brothers sold the 390-unit community to Virginia-based Harbor Group International. The five-story apartment community sits on five acres at Kendrick Street and 2nd Avenue in Needham, within the West Norfolk County submarket. The transaction closed for approximately $182 million or about $466,000 per door. Toll Brothers completed construction on the development in 2018. Apartment amenities include a fitness center with rock climbing wall, swimming pool, rooftop deck, dog park, community kitchen, bike storage area, media lounge, and a game room with a pub.