At this week's Bay Area Apartment Broker's Forum meeting in San Jose, guest speaker Tom Scott of Cambridge Management Company brought some interesting statistics from the Santa Clara County Recorder's office.
2-4 Unit Properties: 15,144 total properties - 787 sold in 2013 - 5.2% of the inventory sold - 19 year average hold
5+ Unit Properties: 5,719 total properties - 554 sold in 2013 - 9.0% of the inventory sold - 11 year average hold
There is almost a double hold period for duplexes and fourplexes compared to larger apartment buildings.This could mean that the ease of ownership on a smaller building is greater and therefore those owners hold the properties longer. Or, someone with a 5+ unit property makes more money faster and therefore sells in a faster time frame. Those are my two suggested reasons.
What do you think?
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