Annualized small multifamily lending volume reached $55.2 billion in Q1 2020. Here’s a quick look at the quarter’s small multifamily investment benchmarks.
With the COVID-19 crisis, the demand for single-family rentals is expected to surge. Read our first-quarter 2020 SFR report for an in-depth analysis.
Download Now COVID-19 Creates Immediate Challenges, Long-Term Opportunities COVID-19 has hit the U.S. economy in full force. Yet leasing and investment brokers are still reporting a high demand for single-family rentals (SFRs). Chandan Economics estimates occupancy rates on transacted SFRs increased to 98.5% in the first quarter of 2020. As a niche sector, SFRs benefit from particularly strong tenant retention. During difficult economic times, SFRs are likely to attract people who would otherwise choose to purchase their own homes. They also appeal to tenants wanting the flexibility of renting. The analysis concludes that with appropriate underwriting standards and financially secure households, SFRs should see a future surge in demand. Download the full report, “Q1 2020 Single-Family Rental Investment Trends Report,” for the latest insights on: State of the Market Occupancy Cap Rates & Prices Loan-to-Value Ratios Debt Yields Build to Rent Future Demand
COVID-19 Creates Immediate Challenges, Long-Term Opportunities COVID-19 has hit the U.S. economy in full force. Yet leasing and investment brokers are still reporting a high demand for single-family rentals (SFRs). Chandan Economics estimates occupancy rates on transacted SFRs increased to 98.5% in the first quarter of 2020. As a niche sector, SFRs benefit from particularly strong tenant retention. During difficult economic times, SFRs are likely to attract people who would otherwise choose to purchase their own homes. They also appeal to tenants wanting the flexibility of renting. The analysis concludes that with appropriate underwriting standards and financially secure households, SFRs should see a future surge in demand. Download the full report, “Q1 2020 Single-Family Rental Investment Trends Report,” for the latest insights on: State of the Market Occupancy Cap Rates & Prices Loan-to-Value Ratios Debt Yields Build to Rent Future Demand
Small multifamily property is expected to outperform other sectors, following the COVID-19 disruptions. To learn more, read our first-quarter 2020 report.
Download Now COVID-19 Uncertainty Slows New Investment Yet Sector Retains Resiliency While the impact of COVID-19 contributed to a 0.9% decline in small multifamily prices in the first quarter of 2020, they are still up 5.5% from a year ago. Chandan Economics’ analysis noted that annualized first-quarter small multifamily loan value fell to $55.2 billion, representing a 6.7% decline in lending activity compared to last year. Yet the report provides reasons for reassurance. The dependability of underlying multifamily demand and the agencies’ commitment to providing programs that maintain market liquidity support the sector’s traditional resiliency. Even with the uncertainties caused by the coronavirus, multifamily is expected to outperform other sectors. Download the full report, “Q1 2020 Small Multifamily Investment Trends Report,” for the latest updates covering the following: State of the Market Lending Volume Cap Rates & Spreads Leverage & Debt Yields Economic Outlook
Arbor’s Single-Family Rental (SFR) Bridge Financing
COVID-19 Uncertainty Slows New Investment Yet Sector Retains Resiliency While the impact of COVID-19 contributed to a 0.9% decline in small multifamily prices in the first quarter of 2020, they are still up 5.5% from a year ago. Chandan Economics’ analysis noted that annualized first-quarter small multifamily loan value fell to $55.2 billion, representing a 6.7% decline in lending activity compared to last year. Yet the report provides reasons for reassurance. The dependability of underlying multifamily demand and the agencies’ commitment to providing programs that maintain market liquidity support the sector’s traditional resiliency. Even with the uncertainties caused by the coronavirus, multifamily is expected to outperform other sectors. Download the full report, “Q1 2020 Small Multifamily Investment Trends Report,” for the latest updates covering the following: State of the Market Lending Volume Cap Rates & Spreads Leverage & Debt Yields Economic Outlook
Arbor’s nationwide experience and expertise allow us to customize multifamily financing wherever your portfolio takes you.
Houston,
TX
Fannie Mae DUS
|
$10M+
Winston-Salem,
NC
Fannie Mae MAH
|
$1-5M
Stone Mountain,
GA
Bridge
|
$10M+
Wilmington,
DE
Fannie Mae DUS
|
$10M+
Smyrna,
GA
Freddie Mac SBL
|
$1-5M
Hartford,
CT
Freddie Mac SBL
|
$1-5M
Dallas,
TX
Fannie Mae DUS
|
$10M+
East Point,
GA
Freddie Mac SBL
|
$1-5M
Baltimore,
MD
Freddie Mac SBL
|
$5-10M
