Loans valued at $500,000,000+ on more than 58,000 multifamily properties will mature before the end of 2029. Those are staggering numbers. Loans on approximately 6,800 properties valued at $150 billion are coming due before the end of 2025. The total value of multifamily loans secured by apartment assets exceeds $1.10 trillion. Another staggering amount. What makes the refinance amount even more daunting stems from the challenge as the loans maturing are coming due when today’s interest rates have elevated above the rate of many of the maturing loans. Also, many property values have declined, and a record setting number of new apartments are coming on-line, further impacting loan underwriting via declining rental  rates, as a requirement to compete with the new units, which obviously affects property value and loan amount. For those with cash and the where-with-all to tackle a challenged property with a debt hurdle, opportunity could be waiting.   

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.