Multifamily Capsule: News You Can Use

This Month’s Multifamily News Headlines Provided by www.RealEstateRaw.com 

Here are some of the top headlines in multifamily news with comments by Bill Ham.

As I predicted, creative financing is here to stay!

• ‘Creative, Not Stupid’: Alternative Lending Companies Staff Up for Breakout Year
• Gray Capital Report: Loan Maturities and Distress in the Multifamily Market

New multifamily construction will play a large role in vacancies in the new cycle. Many cites are experiencing a need for new apartments while others are quickly becoming overbuilt with rents on the decline as a result.

• Record Apartment Development Stalls Rent Growth for Priciest Properties
• Investors “sidelined” as interest rates create cautious lenders

Foreclosure News this month. Short

• Multifamily syndicator faces foreclosure across Texas Triangle
• Foreclosure Auction Set For 212-Unit Atlanta Apartment Building Acquired In 2022
• Texas syndicator Elevate drives another Arbor Foreclosure

Market News

• 4 takeaways from the NMHC conference
• MSCI: Apartment sales drop 61%

The multifamily market certainly seems to be headed into a “buyers’ market”, but the sellers have not gotten that memo yet. The Bid/Ask gap between buyers and sellers currently remains stubbornly large as transaction volume is at extreme lows.

Short term loan maturities loom large in 2024 for many recent buyers of smaller to midsize assets. The banks seem to be losing their appetite for “extend and pretend” with non-preforming loans. 2024 is shaping up to be a turbulent market cycle for multifamily.

For more information like this check out my blog at www.realestateraw.com and join my Facebook group Real Estate Raw for Multifamily Investors.

Best of luck!

Bill Ham