Newsletter: September Pulse Check
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FHA: An alternative to variable-rate bank debt.
A recent article in the Wall Street Journal points to multifamily, following on the heels of office buildings and malls, as the next real estate class to come under pressure from investors and lenders. The problem, “isn’t lack of demand – rents have soared since 2020 – it is interest rates.” Underwritten two or three years ago assuming aggressive rent growth and low interest rates, many multifamily projects now are seeing all of their NOI – and, in some cases, more – go to service debt, with little or nothing left for investors.
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