‘Fairly active’ multifamily market to end 2023 can carry into 2024, Ted Bickel tells Finance & Commerce
MINNEAPOLIS (Jan. 5, 2024) — Managing Director Ted Bickel recently spoke with Finance & Commerce about how the multifamily real estate market fared in 2023.
In the article — “Down year for multifamily but improvement could be near” — Bickel described the year as “choppy and slow” due to multiple factors, the most prominent being interest rates.
“Our team saw just a major disconnect between buyers and sellers,” he said. “The bid-ask spread between buyers and sellers always seemed to be somewhere between 50 to 100 basis points on a cap rate basis.”
Bickel said the market picked up at the end of the year with rates moving down.
“I think even getting to the 60% or 70% of our typical volume would be a good outcome,” he said, estimating a 50% decline in transaction volume in 2023.
One notable sale Bickel highlighted from 2023 was Stone Creek at Medicine Lake, a 132-unit apartment community in Plymouth, Minn. Northmarq brokered the $25 million sale on behalf of FPA Multifamily of San Francisco.
Despite the dampened level of activity in 2023, Bickel expects the multifamily market will be strong in Twin Cities suburbs in 2024.
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