"In a testament to how brutal the year has been, only two multifamily markets have produced positive total returns in the last 12 months, according to a new report by Newmark: Fort Lauderdale and Miami at 0.7% and 0.3% respectively, helped by 4.0% income growth. Appreciation declined but West Coast markets like Los Angeles, San Jose and San Francisco all showed double-digit total return losses." Cap rates have gone up 90 bps Y-o-Y. But where there is pain, there is also opportunity - dry powder at closed-end funds has increased by 11% since the start of this year. Record fundraising by opportunistic funds in this year’s second quarter appears to have pushed the increase as investors plan to take advantage of asset repricing. The $219 billion in dry power raised for equity investments—but not for debt strategies—equates to a leveraged purchasing power of $488 billion. That uses a 55% loan-to-value ratio. Newmark estimates that more than half of this capital is targeted at multifamily assets with most of the remainder focused on industrial assets. The capital targeting office and retail assets is quite small by comparison. #realestateinvesting #cre #multifamily #equityfunds #debtfunds #lending
Drew Deaton’s Post
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Continuing our series of Multifamily trends for the second half of 2024: A Less Crowded Market The latter part of the year is shaping into what is being seen as a brief window of opportunity to acquire institutional-quality multifamily assets well below replacement cost, for the groups that have capital to deploy. Pricing expectations of buyers and sellers finally seem to be meeting again but institutional investors haven’t yet come back to the table in a meaningful way. However, for credit-worthy buyers who can access debt and have cash on hand, the second half could turn out to be “the best buying window we’ve seen for multifamily in premier markets” since the post-Great Financial Crisis. #multifamilytrends #propertymanagement #firstcommercial
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📊 Multifamily Market Stabilization Update! 🚀 Great news from the multifamily sector! According to Redfin’s August report, apartment rents have surged 0.9%—the highest growth we've seen in 18 months! 🏙️ This brings the median rent to $1,645. As we witness this positive shift, it signals stabilization and ongoing demand in the rental market. For investors, this is a strong indicator of resilience and opportunity in the multifamily space. 💼 📈 Are you ready to invest in multifamily? Viking Capital has an incredible BTR investment opportunity in the thriving Dallas MSA. To learn all about this exciting deal Comment BLUE or click here 👉 https://lnkd.in/gNC_HsKX #passiveinvesting #passiveincome #buildingwealth #multifamilyinvestor #investing #realestateinvestor #propertyinvestment #investmentopportunity #investmenttips
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Average Rents Increased: The average rent for multifamily properties rose by $4 in June 2024, reaching $1,739. Year-over-Year Growth: Rent growth showed a modest increase of 0.6% compared to June 2023. Year-to-Date Increase: Since the beginning of 2024, rents have risen by 1.5%. Market Stability: The multifamily market continues to demonstrate steady growth and resilience. At Blue Ring Investors LLC, we leverage our expertise and connections to find high-performing multifamily properties, ensuring maximum returns on your investments. Focused on Texas and the Southeast U.S., we are your partner in real estate success. Follow us to learn more! #bluering #investwithus #earnincome #realestate
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🏡💼 Why Multifamily Real Estate Is Recession-Resilient 📈🌐 Investing in multifamily real estate? Here's why it's nearly recession-proof: 1️⃣ Constant Demand: Housing is a basic need, ensuring steady demand for rentals even in downturns. 2️⃣ Diverse Tenants: Multifamily units attract a varied tenant base, reducing risk during economic fluctuations. 3️⃣ Flexible Leases: Shorter leases allow quick adjustments to rental rates, maintaining income stability. I'd love to chat about more reasons! Email me a Paul@rnrinvestmentgroup.com 🌟💰 #RealEstate #ResilientInvesting #Multifamily #Investnow #fyp #Passiveincome #REcessionproof #Commercialrealestate
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With a potential rate cut of 25 basis points on the horizon, the multifamily market is poised for revitalization. This expected shift could spark new acquisition opportunities, as highlighted by Jeff Klotz, CEO of the Klotz Group of Companies. Moreover, Kristi Nootens of CP Capital notes an "emotional lift" among investors, signaling a potential new growth cycle in real estate investments. Despite the surge in construction, demand for multifamily units continues to outstrip supply, particularly in high-growth areas. This slight rate decrease could improve investment conditions and cap rates, presenting a strategic moment to enhance your portfolio. https://lnkd.in/duhtD_QP
How Multifamily Pros Will Act When Rates Go Down
globest.com
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Unlocking the potential of commercial real estate (CRE) can be a game-changer for individual investors seeking stable, long-term returns. Unlike residential properties, CRE offers a broad spectrum of opportunities, from multifamily housing to warehouses and retail spaces. Investing in commercial real estate provides the comfort of owning tangible assets and the potential for consistent rental income. Plus, with REITs, you can dip your toes into this lucrative sector with relatively modest initial investments. Whether you're exploring publicly traded REITs or considering direct ownership, CRE can help balance your portfolio and provide steady returns. Ready to explore the world of commercial real estate? Start by reading up on REITs and tracking property trends to make informed decisions! #CommercialRealEstate #InvestmentStrategies #FinancialPlanning #REITs #RealEstateInvestment #StableReturns #PortfolioDiversification #LongTermInvesting
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MULTIFAMILY AND STABILITY... Investing in multifamily real estate is like picking the sturdy, sensible shoes of the investment world. Sure, those flashy stocks might look good, but you know deep down, they’re gonna give you blisters. Multifamily properties, on the other hand, offer stability—much like those reliable sneakers you always end up going back to. In any economy, people need a place to live. When times are tough, more people rent. When times are great, more people rent. It’s a win-win, whether you’re navigating a recession or just avoiding those high heels. So, if you’re tired of the rollercoaster that is the stock market, grab your comfy shoes and step into multifamily real estate. Your feet—and your portfolio—will thank you. #harvestpropertiesgroup #realestateinvesting #passiveincome #viveequity #cashflow #wealth #financialfreedom #vivepropertymanagement #makinmoves #barbaricyawp
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CP Capital Co-Head Jay Remillard recently spoke with Anthony Russo of GlobeSt.com. about the challenges and opportunities in the current multifamily real estate market. In the piece, Jay discusses the “generationally high” supply of multifamily units, regional differences in rent growth, and CP Capital’s strategy of targeting high-demand areas with population and job growth. #CPCapitalUS #Multifamily #RealEstate #MultifamilyInvestment #CommercialRealEstate
Expert: Multifamily Remains Buyers' Market Amid 'Generationally High' Supply
globest.com
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Insight of the current market condition. we are preparing for it. what are you doing about it?
The multifamily market can be complex, but understanding trends is key to making informed decisions. According to HLC Equity CEO, Daniel Farber, “Record new supply is set to hit the market, with about 900,000 units under construction and over 440,000 units expected to be delivered this year. This surge could present short-term challenges...however, the long-term outlook remains strong, with a continual demand for multifamily.” Stay ahead of the curve with our latest #MarketUpdateWebinar. 📈 Watch the full video, visit 👉 https://lnkd.in/gUAnUZCc #RealEstateInvesting #Multifamily #HLCEquityinAction #InvestmentStrategies #HLCequity
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As we progress through 2024, the multifamily real estate market is beginning to show signs of recovery after a challenging period. High-supply markets that faced oversaturation and declining rents are now stabilizing, offering new opportunities for investors. In 2023 and early 2024, rapid development in areas like the Sun Belt and Mountain regions led to an oversupply of multifamily units, causing high vacancy rates and negative rent growth. However, the latter half of 2024 brings a shift: occupancy rates are improving, and cities such as Atlanta, Orlando, and Phoenix are experiencing a rebound in renter demand and positive rent growth. For multifamily investors, this evolving landscape presents both challenges and opportunities. Key strategies include focusing on markets where recovery is evident, like Atlanta and Phoenix, while keeping an eye on longer recovery periods in cities like Austin. Diversifying investments and understanding supply and demand dynamics will be crucial in navigating this recovery phase. #RealEstate #Investing #Multifamily #MarketRecovery #PropertyInvestment #RealEstateTrends #InvestmentStrategy https://bit.ly/4edboSz
High-Supply Multifamily Markets Begin to Recover
realfacts.com
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