GlobeSt.com Speaks to Manatt Partner on Strong Multifamily Properties Market
"Back In the Saddle Again"
GlobeSt.com
March 25, 2013 - GlobeSt.com interviewed Manatt's Steven Edwards, a partner in the firm's Real Estate & Land Use Practice, on why the market for multifamily properties has remained viable.
As reported by GlobeSt.com, apartment market fundamentals in most metro U.S. locations have either reset or improved since their pre-recession conditions. Market indicators are overwhelmingly positive for continued strong rental housing demand, and a number of major new multifamily projects across the country were recently either announced or broke ground. While leaders have noticed a loosening of credit for certain multifamily projects, construction activity could be impacted by a promised 10% cut in Federal Housing Finance Agency multifamily finance deals this year.
Edwards said, "As the capitalization rates for multifamily properties continue to fall, one reason the market has remained viable is the relative availability of low-interest financing from FHA, Fannie Mae and Freddie Mac. It can be expected that any curtailment in the availability of such financing will not have a positive market impact."