(2023 projected investment volume and preferences) 3650 REIT Volume: $500M+ $20M-$250M+ JV and pref equity pieces for all asset classes; rescue, value-add, ground-up, opportunistic deals; mid-teens returns; growth Sunbelt markets CenterSquare Investment Management Volume: ~$400M $7.5M-$100M JV and pref equity pieces for rental housing, industrial, retail, niche/alternatives such as cold storage, life sciences, medical office, More
The multifamily market continues to hold its own, and even thrive in the current volatile economy, and one increasingly important factor in that success seems to be community amenities. With single-family home prices and interest rates still at historic highs, it’s not surprising that more than 44 million American households are rental households, according to More
Despite market volatility, including rising rates, the threat of a recession and the recent bank failures, affordable housing is one sector that should still be sought after by capital sources. The agencies are expected to lead the charge and look for a push toward affordable properties with deeper rent and income discounting, which should make More
Affordable housing lending for construction and rehabilitation deals using low-income housing tax credits will be one area that remains less impacted by the volatility in the overall capital markets. The recent bank failures demonstrate the importance of the agency lending programs, therefore, watch for developers and borrowers to look more favorably at agency debt as More
Berkadia 300 S. Orange Ave., Suite 1500 Orlando, FL 32801 Michael Weinberg, Managing Director (321) 319-1419 michael.weinberg@berkadia.com Berkadia arranged the sale and financing of a 213-key boutique hotel in Orlando, Fla. Weinberg secured acquisition financing on behalf of the buyer, Banyan Investment Group, a hotel investment company based in Atlanta. MetLife originated the three-year loan More
Watch for capitalization rates to continue expanding for at least the next few months, according to a recent CBRE survey. The survey notes that cap rates could start to peak later this year and should decrease in 2024 as the end of the Federal Reserve’s rate-hiking cycle is anticipated. Capitalization rates —also known as cap More
Glencrest Group, a multifamily investment company, acquired Meadowland Apartments — a 168-unit garden-style apartment complex in Portland — from the seller, NBP Capital. The sale was arranged by JLL Capital Markets, who worked on behalf of the new owner to originate a 10-year, fixed-rate loan through Freddie Mac. The property will now be known as Township Eastside. More
Hotel financing will be available — especially for hotels with strong operating histories — but will be challenging for the balance of 2023. Lenders are eager to lend on hotels but have decided to dial back leverage due to uncertain pricing conditions. There will be plenty of fixed- and floating-rate financing, but indices have resulted More
As is often the case these days in a volatile climate, the short answer is, “it depends.” More specifically, what can be expected for the next 18 to 24 months regarding acquisition volume, pricing and cap rates; how does one maximize a sale in the current environment; when do values become unsustainable; and is the More
(2023 projected origination volume and preferences) Parkview FinancialVolume: $500MOriginated $560M total in 2022, funded $70M so far this year; $5M-$300M loans for all classes of con-dos with 20+ units; first position; up to 36-month terms; up to 75% LTC; recourse and non-recourse available; rates starting from SOFR+ 650 basis points; no prepayment penalty; foreign national More
There will be available capital for construction projects this year, although count on much tighter underwriting and more cautious lenders. Recent shockwaves in the banking market could also hamper available capital for construction going forward. Construction lending will definitely see a slowdown compared to the last few years. With the increase in rates, it’s harder More
The construction lending market will continue to be limited by concerns over take-out financing. However, lenders are eager to put out construction dollars, although borrowers will see tighter terms. Value is more difficult to underwrite, so expect construction lenders to be far more focused on cash flow and coverage constraints. Construction lending will be all More
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November 7-8, 2023
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