Apartment Hunters via CCIM Institute

Apartment investors are on the hunt. And they’re moving beyond trophy properties into unfamiliar territory in hopes of a rare catch.

In 1H2012, secondary markets posted a 38 percent year-over-year increase in multifamily transaction volume, followed by tertiary markets at 23 percent, according to Real Capital Analytics. Major metros saw only a 9 percent increase during that period.

What’s driving this migration? “It’s primarily a search for yield,” says Ben Thypin, RCA’s director of market analysis. Private investors, equity funds, and some institutional investors have tired of the competition driving down multifamily capitalization rates in core markets.

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