- Multifamily investment volume jumped to $646.1M in Q2, a 950% increase from Q1’s $61.6M.
- Major deals included PSP Investments’ $265.96M purchase of Incanto and JRK Property Holdings’ $186M acquisition of West End 25.
- Net absorption rose to 6,380 units, while other fundamentals like rent and occupancy posted steady gains.
Institutional Capital Reignites the Market
GlobeSt reports that after a slow Q1, Washington, D.C.’s multifamily sales and investment market rebounded sharply. According to CBRE, sales volume surged nearly tenfold in Q2. This wave of activity reflects renewed interest from large investors and improved confidence in market conditions.
Major Deals Drove Volume Higher
Leading the quarter was PSP Investments, which closed two of the top three deals. The firm paid $265.96M for the 148-unit Incanto and $104.5M for the 255-unit The Tides. Meanwhile, JRK Property Holdings acquired West End 25—a 283-unit property—for $186M. These transactions accounted for the bulk of the quarter’s total volume.
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Market Fundamentals Show Modest Gains
While sales volume spiked, core operating metrics showed smaller, but still positive, movement.
- Rents rose 1% quarter-over-quarter, reaching an average of $2,262.
- Occupancy increased by 40 basis points, climbing to 96.2%.
- Vacancy remained tight, with the Manassas/Far Southwest Suburbs submarket posting the lowest rate at 2.1%.
Demand Strengthens Across Submarkets
Importantly, net absorption improved significantly. It reached 6,380 units in Q2, up from roughly 4,300 in Q1. Southeast D.C. led the metro in demand, accounting for nearly 1,200 units of that total.
New Supply Slows but Remains Focused
At the same time, new deliveries declined slightly. Q2 saw 4,006 units delivered, down from 4,675 in the previous quarter. Once again, Southeast D.C. was the most active submarket, with 762 units delivered.
Why It Matters
The sharp jump in multifamily sales indicates that investors are regaining confidence in D.C.’s rental market. Despite only moderate rent growth, strong absorption and stable occupancy show that demand remains healthy. With capital markets stabilizing, the region is well-positioned for continued momentum in the second half of 2025.
