MULTIFAMILY INVESTORS CONTINUE TO ADAPT AND EVOLVE
Even in the face of an unprecedented pandemic, the multifamily industry continues to adapt, evolve and provide homes to millions of tenants across the country. To help meet the needs of our clients who continue to engage with and service these millions, we have put together the Multifamily Edition of our Real Estate Community Newsletter to serve as a tool for engaging with your partners, hearing from your peers and continuing to do business.
Featuring a diverse set of perspectives from individuals across the multifamily sector, we've collated an exclusive interview with Moody's Analytics' Head CRE Economist, a group discussion among senior multifamily professionals based in three of the country's biggest markets, a spotlight on senior & student housing, and a selection of the latest news headlines impacting multifamily investors today.
As we all attempt to chart the path forward, we hope to continue serving as a platform for our clients and wider communities to connect, communicate and engage with one another.
INTERVIEW: River Oak Risk recently sat down with Victor Calanog of Moody's Analytics to discuss the current climate and outlook for the Multifamily sector.
Victor Calanog is the Head of Commercial Real Estate Economics at Moody's Analytics. A prodigious researcher with broad interests, his papers in real estate economics, local government competition, and
urban fiscal policy have been presented in meetings and academic forums sponsored by a wide range of leading economic and academic institutions.
GROUP INTERVIEW: Senior multifamily professionals share how they are adjusting their workflow to operate during the COVID-19 crisis.
Multifamily owners from key markets across the country - including New York, Los Angeles and San Francisco - come together to discuss their ongoing developments, technological undertakings, tenant relations and more.
Senior and Student Housing have been hit pretty hard...
What do you see as the short- and mid-term prospects for both of those sectors?
While the population served by senior housing communities contains a vulnerable population, unlike other sectors, senior housing communities remain open during the crisis. They remain staffed with professionals who are trained to maintain a safe/sanitary environment regardless of the public health situation. Current shelter-in-place orders have made adult children realize that they are ill-prepared to take care of their parents from a remote location. As the crisis evolves, the benefits of high-quality senior housing are becoming clearer to adult children, a rapidly aging population and investors.
Although all universities are closed for the remainder of the spring term, many student housing communities remain open and around 50% to 60% of students have remained and pre-leasing has continued. Unlike other sectors, student housing transactions were already largely online, from tour, to lease to parental guarantees, making for a contactless process. In the future, students may prefer to live in institutionally run and operated student housing that is regularly cleaned and offers bed-bath parity.
Striking a Balance Between Tenants, Landlords and Lenders
"The effects of the coronavirus have begun to ripple through the commercial real estate world. Last month, restaurant chain The Cheesecake Factory made waves with the announcement that it wouldn’t be paying April rent. Sandwich maker Subway similarly informed its landlords that it might not make rent payments due to government-enforced shutdowns. As Commercial Observer reported, a recent Fitch Ratings report found that as of March 29, more than 2,600 commercial real estate borrowers representing over $49 billion in mortgage loans have sought debt relief due to the outbreak."
[Read full article]
Residential Investors Are Bullish Despite Sluggish April Collections
"The current economic and health crisis has affected many around the globe. One of the harder hit sectors is real estate, although investors remain bullish for its long-term potential.
San Francisco-based proptech firm, Stessa, surveyed nearly 1,000 of its active real estate investors with rental properties in early April to get input on how the COVID-19 crisis has affected rental income and portfolio performance. The results were..."
How Multifamily Investors Can Increase 'Other Income' And The Value Of Their Investment Property
"'Other income' is sometimes a category both brokers and investors don’t really think about very much. It’s usually a catch-all for laundry, application fees or bounced check fees. Many times landlords don’t even itemize entries in this category. Other income is too often considered just the gravy on top of the income from rent. The reality, though, is that if your building’s value is determined by a cap rate, other income can have a dramatic upward effect on how much your property is worth. Here are a few ways to increase an apartment investment’s other income."
The Multifamily Industry: Senior Management Strategies During the COVID-19 Crisis
Tuesday, April 28 | 2:00 - 3:30PM ET
At the start of the year, the multifamily industry saw well performing markets and values at an all-time high. In a matter of weeks, the pandemic has brought a historic amount disruption and volatility into the economy. Join us on Tuesday, April 28th at 2:00-3:30PM ET as multifamily industry experts address the unprecedented changes in acquisitions, financing, property management, and regulatory compliance for multifamily investors and property managers.