As the average household income level of a metro rises, we using see asking apartment rents grow alongside it. We rent levels fall out of alignment with the growth of household incomes, affordability issues begins to emerge. Moreover, the affordability issue continues to be exacerbated by discrepancies in supply and demand conditions. Let’s examine the relationship between small asset apartment asking rents and household income … Continue reading The Correlation Between Income and Multifamily Rents
The adoption of solar powered heating in multifamily is proving to have significant impacts on more than just the environment. In fact, implementing this “green” trend could lead to considerable financial benefits including increased NOI, reduced operating expenses and even discounted loan rates and state level incentives. Thought the perks of going solar are undeniable, it seems that the usage of it is somewhat limited … Continue reading Solar Heating Gains Momentum in South-West
Ivan Kaufman, Chairman, President & CEO of Arbor Realty Trust Inc., sits down with Steve Johnson, Vice President of the Small Loan Business at Freddie Mac, and Sam Chandan, Silverstein Chair at the NYU SPS Schack Institute of Real Estate to discuss how the needs of the small balance multifamily borrower differ from larger institutional investors. Continue reading Who is the Small Multifamily Borrower?
In October 2014, Freddie Mac launched its Small Balance Loan program designed for multifamily investors looking to borrow between $1 and $5 million to acquire or refinance apartment properties with 5 or more units. The loan program proved extremely popular for the multifamily industry and $2.6 billion was funded by December 2015. The non-recourse loans have flexible terms and competitive interest rates. Continue reading Freddie Mac Multifamily Small Balance Loans
Small multifamily loans between $1 and $5 million in size are a growing sector of the apartment lending industry. The small loan market was estimated to represent 65% of multifamily loans and 20% of the overall volume in 2015, according to Chandan Economics. The estimated $44.3 billion small multifamily loan origination volume in 2015 was a four-fold increase over 2009’s $11.1 billion estimated origination volume. … Continue reading Mulifamily Market Fundamentals (part 1)
In our latest video covering the commercial real estate market, we discuss the continued disruptions occurring in foreign markets and the resultant flight to stability, as foreign investors are increasingly looking to place their money within the U.S. market. However, there has been an recent adjustment to this overall trend, as several foreign countries are starting to restrict the money flowing out, plus the currency … Continue reading Commercial Real Estate Market Movements