News
MULTIFAMILY LENDING STILL RATIONAL
April 19, 2012
| Aries Capital chairman Neil Freeman tells Bisnow that he doesn't believe lenders have overinflated the multifamily market yet. He'll expound on that and more at our Chicago Capital Markets Summit on May 29 at the Westin Chicago River North. (Register!) | ||
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| Neil (left, with Aries SVP Jeff Bucaro and a rude, photobombing ram) says between 2008 and 2012, there was very little new construction for apartments and virtually no condo units in Chicago. So there's demand for apartments, he says, adding that with household formations, less tenant turnover to buy homes, and an improving job market, the additions to the city's apartment stock through 2014 or 2015 should be absorbed. But not all is rosy for multifamily: "Rent increases, while aggressive in 2012, may not be as robust as developers are projecting in 2014." As for other property types, Neil believes there are some good repositioning opportunities and lenders are starting to recognize these: "There is ample money from non-banks for loans at good rates for stable properties with good cash flow." | ||
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