Drew Deaton’s Post

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Director SFR, Private Client Group | SFR | BTR | Portfolio Lending | Aggregation Lines

"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

Dry Powder Circles Multifamily Deals | GlobeSt

Dry Powder Circles Multifamily Deals | GlobeSt

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