Demand for multi-family nationwide rescues holders of defaulted mortgages

TRD MIAMI /
Mar.March 07, 2012 02:15 PM

Demand for multi-family properties nationwide is surging, due to a lack of inventory in the pipeline in combination with the lowest homeownership rate in more than a decade, Bloomberg News reported.

Investors’ desire for multi-family properties has allowed lenders to recover an average of 75 percent of the value of defaulted mortgages tied to multifamily housing — the highest recovery rate among all commercial property types, Bloomberg said. Some buyers are even paying full price for distressed properties, forgoing the foreclosure procedure entirely, in an effort to snap up the assets before other buyers.

“Multifamily was not hit hard from a capitalization standpoint,” said Ryan Millsap, managing principal at Los Angeles-based Arenda Capital Management, which recently bought a distressed building before it was foreclosed on. “Everybody overpaid — but there was nothing wrong with the actual properties, and today’s market recognizes that. The property itself doesn’t know the difference — it just keeps operating.”

Sales of U.S. apartment properties totaled $3.8 billion in January of 2012, a 53 percent increase year-over-year, according to data from Real Capital Analytics. [Bloomberg]


Related Articles

arrow_forward_ios
450 Northeast Fifth Street (Credit: Google Maps)

Jenco Properties pays $68M for Flagler Village apartments

Jenco Properties pays $68M for Flagler Village apartments
410 Southeast 16th Court, Fort Lauderdale

Fort Lauderdale apartment building get TCO, begins leasing

Fort Lauderdale apartment building get TCO, begins leasing
Hamilton on the Bay and listing broker Rani Hussami

Apartment giant Aimco buys waterfront Hamilton on the Bay tower in Edgewater

Apartment giant Aimco buys waterfront Hamilton on the Bay tower in Edgewater
Yard 8 and Wood Partners CEO Joseph Keough (Courtesy of ACRE)

Wood Partners lands $86M refi for Midtown Miami apartments

Wood Partners lands $86M refi for Midtown Miami apartments
Paseo de la Riviera and Brent Reynolds

Developer completes $225M Paseo de la Riviera mixed-use project

Developer completes $225M Paseo de la Riviera mixed-use project
Jonathan Shechtman from Axonic and Herve Barbera from Bar, with 4860 Sandstone Lane

Bar Invest pays $56M for West Palm apartments

Bar Invest pays $56M for West Palm apartments
Asi Cymbal and a rendering of the project

Asi Cymbal closes on multifamily dev site in Dania Beach

Asi Cymbal closes on multifamily dev site in Dania Beach
Housing Trust Group CEO and President Matt Rieger and renderings of the project (City of Hollywood)

Hollywood approves multifamily affordable housing project

Hollywood approves multifamily affordable housing project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...