Multifamily continues its real estate domination, but 2015 may be the year of even more transactions as more owners are ready to sell, says Marcus & Millichap’s National Multi Housing Group senior director Al Silva (here, with his wife, Erin, at the Golden Globe Awards in Beverly Hills). He gives us his take on why.

1. Profit making & loans coming due

There were a lot of CMBS transactions in the last market cycle, and many of those loans are coming due, Al says, which will help spur sales. As values have increased, many buyers from the past several years have seen their value-add realization and are ready to sell and take some profits. There are still more buyers than sellers by a large margin, but it’s getting a little more balanced, he says.

2. Available money

There’s a lot of capital available and a diverse mix of buyers looking at many attractive financing options, Al says. For long-term debt, even a lower-quality property can get interest rates in the high 3s to low 4s, and a higher-quality asset (and the right borrower) can get multi-year interest-only loans. This helps keep returns attractive even though cap rates are low.

3. People keep on coming

As the population continues to grow, demand and, subsequently, rents are growing. That keeps fundamentals strong and the transaction volume moving, he tells us. Al has sold 3,100 units in the last 12 months, including three properties since the New Year. The 600-unit Mandalay Palms (pictured) at 7501 Chesterfield Dr in Dallas was sold to a Texas buyer after three weeks of marketing. The property attracted eight offers and closed within 60 days of reaching an agreement. The new owner plans to invest a substantial amount of capital into improving the property. IPA’s Brian Adams arranged the financing, which includes both acquisition and renovation funds.