Multifamily Monday: New Buddies

The strategic alliance between Northmarq Capital and investment sales firm The Apartment Group (struck in January), has made perfect sense in the multifamily sector, Northmarq EVP  William Ross  tells us.
 
The partnership is marketing five properties for sale. In one case, one of NorthMarq's correspondent lenders had an underperforming property in which the developer had given up. Occupancy had fallen to around 65% when The Apartment Group's Jeff Price stepped in and got a new receiver appointed. "We hope to bring occupancy back to 90%, market it, and maximize the sale proceeds for the lender," William says. He adds that after examining a property, advice on whether to sell or raise more long-term capital can be determined.
Low-cost funding for multifamily is available through Fannie,Freddie, and FHA, William notes. With occupancies around 90% in many major markets, buyers are looking to expand their portfolios. Multifamily cap rates  have remained competitive, and already this year, NorthMarq has closed on more than $1.2B in apartment deals with financing rates in the low 4% to the mid 5%  range, he says. There are about 35k to 40k units in DFW that have construction or short-term bridge financing, making them ideal properties for NorthMarq to arrange long-term financing.

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