- Apartment sales volume in 2024 totaled $146B, up 22% YoY but still below pre-pandemic levels.
- The average price per unit rose 3.8% to $211.5K while cap rates climbed to 5.57%, the highest level in 8 years.
- The 5 largest single-asset apartment sales closed on the East and West coasts, with New York, Seattle, San Francisco, and Los Angeles leading.
After a slowdown in 2023, US apartment investment rebounded in 2024, with five major properties selling for around $250M or more, according to RealPage.
Rebounding Apartment Market
After a sluggish 2023, US apartment investment saw renewed momentum last year. According to MSCI Real Capital Analytics, 5.7K apartment properties changed hands, with a combined value of $146B.
While the market improved from 2023, overall volume remained below the $169B annual average recorded from 2015 to 2019 and was significantly lower than the $332B yearly average seen in 2021 and 2022.
Despite rising cap rates, apartment properties remained attractive investments, with cap rates averaging 5.57%—still the lowest among major commercial real estate sectors.
5 Largest Apartment Sales of 2024
1. 20 Exchange Place, New York – $370M
The largest single-asset apartment transaction of 2024 was the sale of 20 Exchange Place in Manhattan’s Financial District. The Dermot Company and PGGM acquired the 767-unit tower for $370M ($482.4K per unit).
Originally built in 1931 as the HQ for City Bank-Farmers Trust, the building was converted into apartments in phases over a decade. The new owners plan to upgrade the amenities and unit finishes, including a rooftop terrace, fitness center, and co-working lounge.
2. Parkside Esterra Park, Seattle – $286M
In November, Lakevision Capital purchased the 664-unit Parkside Esterra Park in Redmond, Washington, for $286M ($434K per unit), the second-largest apartment transaction of 2024.
Built in 2021, the property is part of the 28-acre Esterra Park master-planned community, near Microsoft’s headquarters. It features two rooftop decks, a fitness center, work-from-home spaces, and electric car charging stations.
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3. The Aire, New York – $265M
The third-largest transaction was the $265M sale of The Aire, a 310-unit high-rise on Amsterdam Avenue in Manhattan’s Upper West Side. Gotham Organization and Carlyle Group acquired the 43-story tower for $854.8K per unit.
Originally built in 2010, the building offers concierge service, fitness and yoga rooms, private sound-proof music spaces, and a rooftop event deck.
4. Hillsdale Garden, San Francisco – $252.4M
In October, Ethos Real Estate purchased Hillsdale Garden, a 697-unit garden-style community in San Mateo, for $252.4M ($362.1K per unit).
Originally developed in 1948, the 30-acre property will be converted into affordable housing for households earning below 80% of the area median income. Amenities include a fitness center, playground, picnic areas, and a pool.
5. The Royce Park Place, Los Angeles – $247.5M
Rounding out the top five, MetLife acquired The Royce Park Place, a 520-unit community in Irvine, from Sares Regis Group in December for $247.5M ($476K per unit).
Built in 2018, the property offers luxury amenities, including two rooftop clubrooms, an 18-hole golf simulator, a pet spa, and a fitness center.
What’s Next?
While apartment investment activity rebounded in 2024, sales volumes remained below historical highs. Rising cap rates and economic uncertainty could continue to impact pricing, but demand for high-quality assets in major coastal markets remains strong.
Looking ahead, investors will likely focus on value-add opportunities, affordability strategies, and strong-performing rental markets.
