The $12 Billion Apartment Sale

Posted By: Jon Lowder Blog ,

Given the current state of affairs due to the COVID-19 crisis do you think now's a good time to go looking for apartment acquisitions? The folks at Jones Lang Lasalle, Inc. are betting some folks believe it is according to this Bloomberg article:

Commercial real estate firm Jones Lang LaSalle Inc. is seeking buyers for more than $12 billion worth of apartment buildings, testing demand for an asset class that has held up in past downturns against the fallout from the coronavirus pandemic.

The firm is targeting investors who raised money prior to the Covid-19 outbreak as well as would-be buyers who are shifting money away from hotels, shopping malls and other types of real estate suffering from social-distancing efforts...

JLL is currently pitching more than $9 billion in apartment deals, including single buildings and portfolios, and preparing to bring another $3.2 billion worth to the market over the next 30 days...

Investors, meanwhile, are showing less interest in big cities like New York and Los Angeles, where renters typically spend a greater share of their income on housing. Instead, Lawton expects buyers to prize suburban apartments, as well as units in Denver, Charlotte, North Carolina, Tampa, Florida, and other secondary markets.