Apartment Investors Face $757B of Loan Maturities
In a rising interest rate environment, apartment owners face $757 billion of loans coming due between 2026 and 2028, the Wall Street Journal reported, citing Mortgage Bankers Association data. Nearly $300 billion of these loans mature in 2026 alone, at borrowing rates that are roughly twice the level of 2021, when many of the loans were made.
Five years ago, the multifamily sector was seen as a refuge for investors as other property types struggled to recover from the pandemic, reported the WSJ. Borrowing rates hovered around 3%, and rents posted double-digit gains in many cities. “There was a sense of relative euphoria,” Mike Wolfson, Newmark’s managing director for multifamily capital markets research, told the WSJ. “But things turned very quickly.”
The delinquency rate for multifamily loans in CMBS jumped from 1% in October 2023 to 7.1% this year, the biggest increase of any major property type, the WSJ reported, citing a Morgan Stanley report. About 3% of the loans coming due this year that can’t be extended are in some kind of distress, the highest level over the past five years, according to Trepp.
Other News
Mondev Gets More Selective On Montreal Multifamily Sites As Costs Tighten
Montreal may be building rental housing at a record pace, but Mondev is already becoming far more selective about what it will build next. Jordan Owen, who oversees Mondev projects from acquisition through construction and stabilization, said the company has started about 1,500 units annually in 2025 and 2026. Much of that activity, however, is...
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Morgan Properties Buys 500-Unit Memphis Rental Asset
A Morgan Properties affiliate bought a 500-unit apartment complex at 9135 Morning Ridge Road for $56.5 million. Independence Realty Trust was the seller. The Memphis Business Journal reports that Independence Realty purchased the property for $29.8 million in 2014. Morgan Properties currently owns two local apartment communities in the Memphis area: Crescent at Wolfchase and...
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Clear Blue Helming $88M Dickson Affordable Housing Venture
The Clear Blue Company broke ground on Honeywood Dickson, a 228-unit, nine-building affordable housing community located at 841 Cowan Road in Dickson, Tennessee. Located on 16.14 acres, Honeywood Dickson will be reserved for households earning up to 30% of the area median income (AMI), 114 for households earning up to 60% of AMI and 57 for...
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Brokers
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Remax Professionals
Re/Max Real Estate Professionals | New York
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Jared Ennis
Central CA Commercial | California
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Rick Recckio
Recckio Real Estate & Development
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Eamonn McConnell
Avison Young - CA - ON - Greater Toronto
Lenders
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Essex Property Trust, Inc.
California
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Josh A
California
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Bob Tuteur
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Andrew Schildcrout