Thursday, September 9, 2010

National Apartment Association Posts Mid-Year Apartment Report Updates

The 2010 Mid-Year Apartment Report from the National Apartment Association includes these predictions:
  • Many more assets will hit the market Q3 and Q4 with an attempt to close by year-end.
  • Occupancy will remain tight across the country
  • Effective rents will remain strong
Other reports state "investors seeking small balance loans ($2 million or less) had more challenges in the first half of the year but there is reason to expect that situation to improve in Q3 and Q4. Mortgage REITS, Fannie Mae, Freddie Mac, HUD/FHA, and CMBS aggregators are generally geared toward larger transactions but some are adjusting minimum loan levels down to increase deal flow and earn spread premiums."  However, analyst Mike Bryant of Berkadia Commercial Mortgage in Dallas opines, "as multifamily housing debt opportunities increase, the under $2-million debt deal will eventually attract new lenders because the space has limited competition and great spreads."  Read more of these and other reports.