Tenant retention is a valuable — though sometimes elusive — contributing factor to the strength of a multifamily property. Nationally, 29% of multifamily households signed a third lease for the same unit, according to an analysis of the U.S. Census Bureau’s American Community Survey. Locally, renter turnover was lowest in major coastal markets, like New York City, and highest in transient renter markets, like Charleston, SC.
New Financial Products Help You Get Green by Going Green
Multifamily investors are increasingly implementing value-add strategies to reposition older — and sometimes mismanaged — apartment assets with higher rent rates, occupancy and tenant satisfaction.
While the value-add method has proven successful in primary, secondary and tertiary MSAs nationwide, the most savvy market participants are supercharging their investment strategies with green loans from Fannie Mae and Freddie Mac.
These loan products help investors identify and execute sustainable retrofits that reduce water and energy use, which lower operating expenses and in turn boost NOI. But that’s not all. These loan products also offer discounted interest rates, increased proceeds and underwrite up to 75% of the projected utility savings.
To learn more about “The Business Case for Green Multifamily Financing”, download your complimentary whitepaper now.