Equity will get a jolt during the second half of the year

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JV and pref equity deals will continue to be difficult for the first part of the year as many investors remain on the sidelines. Rising rates have caused floating-rate debt to be above most cap rates, resulting in negative leverage. Some JV equity providers have shifted their focus to the debt side or will invest as pref equity only. There has not been a lot of acquisition equity being placed and a huge pullback in ground-up development is occurring. However, it is not all doom and gloom. Whispers are that the Fed plans for at least three rate drops this year and once that happens, there will be more activity. More

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