MULTIFAMILY LENDING STILL RATIONAL

Aries Capital chairman Neil Freeman tells Bisnow that he doesn't believe lenders have overinflated the multifamily market yet. He'll expound on that and more at our Chicago Capital Markets Summit on May 29 at the Westin Chicago River North. (Register!)
 
Neil (left, with Aries SVP Jeff Bucaro and a rude, photobombing ram) says between 2008 and 2012, there was very little new construction for apartments and virtually no condo units in Chicago. So there's demand for apartments, he says, adding that with household formations, less tenant turnover to buy homes, and an improving job market, the additions to the city's apartment stock through 2014 or 2015 should be absorbed. But not all is rosy for multifamily: "Rent increases, while aggressive in 2012, may not be as robust as developers are projecting in 2014." As for other property types, Neil believes there are some good repositioning opportunities and lenders are starting to recognize these: "There is ample money from non-banks for loans at good rates for stable properties with good cash flow."
 

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

Gaming & Leisure Stays Bullish On Bally's Casino Project Despite Delays

The Geo Group To Reopen 2,329-Bed Immigration Facility In Texas

What's At Stake For CRE In Tuesday's U.S. Midterm

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Morningstar Releases New Details On Over 350K SF In Q3 Office Leases

New Bears Stadium Proposal Floated For Bridgeport

Prologis To Develop 3.8M SF Industrial Park On Former Casino Site

Foundry Robotics Leaves San Francisco For New East Bay HQ

Tenant Rep Firm Expands To Philly, Hires Industry Veteran

$120M Ambulatory Center Planned For Suburbs: The Chicago Deal Sheet

Data Centers Lose The Top Spot, San Francisco Jumps 40 Places: 9 Takeaways From ULI's 2027 Outlook

Obama Center Shows Chicago Is Starved For Development