Apartment investors are actively on the hunt and moving into secondary and tertiary markets. According to Real Capital Analytics, in 1H2012, secondary markets posted a 30% year-over-year increase in multifamily transaction volume, followed by tertiary markets at 23%. Major metros saw only a9% increase during that period. Investors are searching for yield in class B and C just like what is most common in core markets. This investor segment mostly includes private money, which compromise 65% of buyers in secondary and tertiary markets as of 2Q12. Equity funds represent a large percentage in tertiary markets.
Source: Real Capital Analytics