July 1, 2026– Bloomfield Hills, MI
IPO is pleased to announce our 2026 multifamily investment sales for the 2nd Quarter. Further statistics and the current market outlook are also summarized below.
The 2nd Quarter saw a significant uptick in closed transactions quarter-over-quarter. We saw transactions across all asset classes and major markets we service.
- Q2 closed with 19 multifamily sales reflecting over $58M in transactional volume. This is nearly double the number of Q1 transactions, suggesting meaningful market acceleration
- Varied Asset Profile: Market-Rate, Affordable, and Senior. Within the Affordable umbrella we have LIHTC, RD, and HUD transactions
- Markets: Detroit MSA, Lansing, Columbus, Indianapolis MSA, and many other submarkets
The market recovery experienced turbulence this year after the Iran conflict caused a spike in the 10-year treasury. With the conflict winding down we are feeling the market accelerate, but this volatility appears to have extinguished any lingering hope of an “interest-rate rescue” for owners seeking to sell or refinance at 2022 values. With the new Fed Chair, Warsh, eliminating “Forward Guidance” and the recent decision by the FOMC to hold rates due to inflation risks, the majority of macro and micro data points firmly support no rate reductions in the near future.
The market correction that has been slowly occurring since 2023 will only be completed when there is full acceptance that the near-term future will not resemble the 2021-2022 market environment. Lenders are accepting this with many loans being sold at discounts, and even some foreclosures of failed new development deals and distressed assets in tertiary/C markets.
Insurance continues to be a challenge, and property taxes remain a concern in certain municipalities. But overall, the fundamentals are strong in the Midwest; nation leading rent growth, limited vacancy in most markets due to undersupply, and solid collections. Debt is readily available, albeit at rates higher than desired, but still at historically attractive rates below 6% for the right deal and lender fit. We are seeing 150-250 basis spreads between the cap rate and cost of debt, creating an attractive investment environment for buyers.
The second half of 2026 is shaping up to be very active, based on our current pipeline and pending transactions. Now is the ideal time to discuss your investment goals for 2026 and beyond.
Our team is experienced, dedicated, and built to deliver results. With more than 100 years of combined apartment brokerage experience under one roof, IPO brings unmatched market knowledge and a relationship-driven approach to every transaction. We do business differently than our competitors, approaching every deal from the perspective of an owner and investor to create value every step of the way. The best partnerships are built before they’re needed. We’d welcome the opportunity to get to know you, understand your goals, and help with your next transaction. It all starts with a conversation. We love what we do, and we’d love to work with you.