STOA Capital’s Post

🚨 Industry Update: Ready Capital and Arbor Realty Trust face significant challenges as they navigate late-cycle stresses in the multifamily sector. Ready Capital reported a staggering 284% increase in delinquencies across their $6.6 billion bridge loan portfolio. 🔄 Market Cycle: Expansion ➡ Peak ➡ Contraction ➡ Trough Somewhere between a market's Expansion and Peak, it experiences the "late-cycle." At this point, asset prices reach a zenith, interest rates feel topped out, economic growth slows, and inflation is felt. We can expect these groups to divest these portfolios as quickly as possible, to cut sunk costs and recoup some of that capital for re-deployment as we enter a slight Contraction / Correction. ⁉ What are your thoughts on the current state of the multifamily sector? Have you noticed similar trends? via Jack Arevalo -- #commercialrealestate #realestate #capitalmarkets #structuredfinance #newyorkcity #newyorkrealestate #philadelphia #philadelphiarealestate #multifamily #netlease #development #stoacapital #avlvarchitecture #avlvdevelopment https://lnkd.in/eDeDrPcs

Landlords Face a $1.5 Trillion Commercial Real Estate Maturity Wall Landlords for offices, apartment complexes and other commercial real estate have $1.5 trillion of debt due by the end of next year, and about a quarter of that borrowing could be hard to refinance, according to Jones Lang LaSalle Inc. “A large portion of the multifamily world is underwater at the moment,” said Catie McKee, director and head of commercial-mortgage backed securities trading at Taconic Capital Advisors. “A lot of the equity is gone, but it’s an asset class that is pretty resilient over time. It’s underwritable, it just needs a capital infusion.” #realestate #property #commercial #officebuildings #officespace #debt #inventory #therealtynews #investors #investments #data #report #hnwis #realestatedevelopers #realestateagents #landlords https://lnkd.in/gTPk5HxD

🚨 Industry Update: Ready Capital and Arbor Realty Trust face significant challenges as they navigate late-cycle stresses in the multifamily sector. Ready Capital reported a staggering 284% increase in delinquencies across their $6.6 billion bridge loan portfolio. 🔄 Market Cycle: Expansion ➡ Peak ➡ Contraction ➡ Trough Somewhere between a market's Expansion and Peak, it experiences the "late-cycle." At this point, asset prices reach a zenith, interest rates feel topped out, economic growth slows, and inflation is felt. We can expect these groups to divest these portfolios as quickly as possible, to cut sunk costs and recoup some of that capital for re-deployment as we enter a slight Contraction / Correction. ⁉ What are your thoughts on the current state of the multifamily sector? Have you noticed similar trends? -- AVLV Architecture & Development STOA Capital #commercialrealestate #realestate #capitalmarkets #structuredfinance #newyorkcity #newyorkrealestate #philadelphia #philadelphiarealestate #multifamily #netlease #development #stoacapital #avlvarchitecture #avlvdevelopment https://lnkd.in/erAN5mD8

Multifamily Capital Activity to Pick Up This Year

Some good #realestate #investor news heading into the weekend. The multifamily investment market is rebounding in 2024, with lenders increasingly eager to finalize deals. After a challenging year marked by a buyer-seller pricing gap and volatile interest rates, the market sees heightened enthusiasm from lenders to work with borrowers. LAND AND SEA REAL ESTATE, INC. JoAnn Kalogianis Spaneas #realestate #Commercial #residential #multifamily #investment #housing #apartments #workforcehousing #lenders #banks #financing -

The multifamily CMBS market has seen distress nearly triple in the last six months, reflecting the sector's heightened vulnerability to economic pressures and rising interest rates. This significant increase in distress signals upcoming challenges for investors and developers. However, this market turmoil is expected to create unique buying opportunities, as distressed sellers and operators may be forced to sell their assets. Check out the full article for more insights and feel free to leave us a comment with your thoughts. #multifamilyinvesting #realestate https://lnkd.in/gd8V7hYr

Highlighting concerns in multifamily in Newmark's 2024 Q1 United States Multifamily Capital Markets Report. Inventories and operating costs are up, rent growth is negative, and $669 billion in loans, many "in a very different environment than when they were originally issued," will mature from 2024 to 2026: #commercialrealestate #debt #equity #interestrates #multifamily #realestate

The Fed's 50 basis-point cut is a welcome relief, yet the multifamily market faces ongoing challenges, including distressed loans. As investors look for opportunities, it's crucial to stay informed about the potential impacts of economic shifts. What are your predictions for the multifamily landscape in the coming months? #RealEstateInvestment #EconomicTrends #MultifamilyMarket

The Fed's 50 basis-point cut is a welcome relief, yet the multifamily market faces ongoing challenges, including distressed loans. As investors look for opportunities, it's crucial to stay informed about the potential impacts of economic shifts. What are your predictions for the multifamily landscape in the coming months? #RealEstateInvestment #EconomicTrends #MultifamilyMarket