Video Time: 2 minutes
How COVID is affecting the Multifamily industry.
Everyone is out there hunting for a good discount. There has been a lot of activity in the private client space of around $25 million and under. Those type of transactions are still happening and less discounted than expected. There has been a big pickup in refinancing activity.
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Video Time: 5 minutes
What are developers and owners saying about different markets?
What is going on as far as people putting properties on the market? There is no broad trend and it’s really a case by case basis. There is no large discount for getting into multifamily If consumers preferred renting to begin with and we are in a recession, the outlook for multifamily looks strong 3-5 years out. In the pandemic-driven recession people have been eating through resources and it makes it harder for people to buy single-family houses. Bibby: “multifamily has one of the strongest outlooks of any property sector aside from industrial.”
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Video Time: 5 minutes
What types of loans are instructors seeing right now for June?
Those that started projects in 2019 are proceeding but there has been a crunching halt on new construction at least for the next 60 days as of May. There are still plenty of questions out there as of May Most developers are holding back to see how this shakes out. Before we entered this pandemic we were seeing softness in the class A space with class B and C apartments seeing high demand. So there are a lot of questions surrounding the A space right now. We are seeing private investors step up right now because they can acquire properties they couldn’t before.
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Video Time: 2 minutes
What types of loans are instructors seeing right now?
Forbearance seems to have slowed down
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Video Time: 6:30 minutes
Has there been an uptick in transactions in the states that have reopened?
Certain markets like Texas and others in the south are primed for quicker rebound. However, rental demand has still gone down even in markets that are reopened.
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Video Time: 1:26 Minutes
Instructors share capital markets outlook as market openings roll out.
Anyone that has a longer hold period is taking advantage of lower rates. On the flip side, some buyers are looking for flexibility. There’s not a lot of new loan products yet.
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Video Time: 3 Minutes
This section covers what these numbers mean from a lending perspective.
In May there were no reliable metrics. The physical restraints of not being able to meet face to face with clients is affecting transaction volume. The amount of capital on the sidelines is immense. There is a lot of interest in acquiring assets.
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Video Time: 3 minutes
What characteristics have other instructors seen in their portfolios through June?
Things were better than anticipated in April and May. Concern for the months ahead abounds. How long will it take for the jobs to come back?
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Video Time: 2 minutes
Has there been a difference in collection histories because of different styles of management?
David Schwartz’s Waterton Multifamily Portfolio has seen similar numbers to NMHC. Enhanced unemployment benefits have allowed people to stay in their homes. If it is not renewed in July it could send ripples through the industry.
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Video Time: 1:50 minutes
Are Rents Beings Paid?
Most of the discord has been coming from non-professionally managed rental properties.
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Video Time: 1:21
Answering the questions, are people paying rent and what is the impact of the numbers based on capital markets.
Many of the transactions that were in the pipeline and got delayed in March have come back. There has only been a moderate price reduction as of May in multifamily properties. Transaction volume has been way down from a typical market environment. There is a lot of concern for what will happen in August/September once unemployment benefits run out.
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Video Time: 3 minutes
Experts give insight on May’s numbers and effects of capital market affecting banks.
Doug Bibby discusses April through May rent tracking. Owner-operators reported that May numbers looked better than April. Many in the industry expected rent collections to be around 60% in May but they were around 80% at the recording of the webinar. (Compared to 81.7% in the first six days of May 2019).
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Video Time: 2:28
Experts give insight track for June numbers and effects of capital market affecting banks.
Just under 81% of residents paid full or partial rent through the first 6 days of June. That compares with 81.6% in June of 2019 but ahead of May, which came in at 80.2% We have seen a slight erosion in asking rents in the class A space. There is a further separation between the class A space and the class B and C space. There will be continued stress in the class C properties, according to Doug Bibby. In April and May around 95% of rents were collected by the end of the month
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