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Opportunity zones appear incredibly attractive to investors, but many developers refuse to chase the deals. Investors can take proceeds that would be subject to capital gains and put them into Qualified Opportunity Funds (QOF) to defer their capital gains taxes after 10 years, but specific regulations haven’t been finalized. It’s a gamble to pursue OZ More

Count on buyers such as Inland Real Estate Group, Cortland, Goldman Sachs and more to slowly step away from the value-add space in search of core-plus opportunities. Many firms will still try to pursue value-add deals opportunistically, but they are becoming less frequent while demand is still tremendous. Finding suitable investment opportunities and hitting investment More

There will be a need for more land capital this year, especially as construction loans are harder to come by.  It will be a cautious market, but lenders are still willing to provide capital for the right deals.  Debt funds and private money lenders will be the best bet for non-recourse loans, although with higher More

Bank lending will be robust this year with major banks such as BofA, Wells Fargo, JP Morgan Chase, Deutsche Bank, U.S. Bank, TD Bank, PNC Bank, BB&T, KeyBank, SunTrust, Morgan Stanley, Bank OZK and Fifth Third Bank all picking up market share.  Volume will be on par with 2018.  Watch for banks to offer more More

The demand for equity in the multifamily space will be immense, as equity capital stays fluid. There’s plenty of equity-provider interest in multifamily, especially from global institutions who want experienced, specialized operators to mitigate risk. Targeted IRRs will be in the mid-teens-plus with preferred returns in the low-teens. Construction IRRs should be in the high-teens More

Bridge lending will be strong in 2019 as investors continue to seek value-add transactions.  There will be plenty of money, but not enough deals.  Watch out for an increasing number of insurance company lenders to enter the space, along with former equity funds looking for better risk-adjusted yield.  Bridge lenders that are having difficulty taking More

There will be no shortage of hotel construction capital, as 2019 allocations exceed 2018 across the board with a strong lender desire to place money.  Expect certain lenders to be more open to non-primary markets and independent properties in order to grab yield.  However, construction lending will be selective and focused on borrowers with strong More

Equity Residential, MAA, Aimco and the other public REITs will move at a steady pace this year. Many of the public REITs are increasing their budgets for development costs, which can include redevelopments and renovations, likely as a response to high buying prices and moderating returns. Same-store NOI, occupancy, revenue and expenses reflect the sentiment More

Multifamily borrowers will see plenty of bank lending activity this year including big players such as Wells Fargo, U.S. Bank and BofA. Look for banks to be more competitive with terms and provide the most flexibility. Anticipate them to become more active in the value-add and bridge lending multifamily space in their search for yield. More

Expect condo development starts to remain strong in 2019 but slow down overall. There are many developers still bullish on condos and trying to get new projects off the ground. However, lenders will be a little more hesitant. Banks will shy away from condos almost completely, leaving private money lenders and debt funds to pick More