CRE Market Multifamily Boom

Unveiling the Market's Secrets from Behind the Scenes

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"Commercial and multifamily mortgage debt outstanding increased to almost $4.8 trillion in the fourth quarter of 2024, up 3.7% compared to last year. For the tenth consecutive quarter, multifamily debt outstanding increased at a faster rate than the overall CRE market. Almost 56% of the growth in multifamily MDO reflected growth in agency and GSE portfolios and mortgage-backed securities (MBS).”

-Michael Fratantoni, Chief Economist, Senior Vice President of Research & Business Development at MBA

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question:

How do different interest rate environments affect cap rates for multifamily properties?

Answer:

Interest rate environments significantly affect cap rates in multifamily real estate. Higher interest rates tend to increase cap rates, lowering property values, while lower interest rates compress cap rates, making properties more expensive. Investors should monitor these trends to optimize acquisition timing.

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Navigating Headline Driven Markets

MacroVoices Erik Townsend & Patrick Ceresna welcome, Lyn Alden. They’ll discuss everything from what’s next for the stock market to international diversification strategies to energy, gold, Bitcoin and more.

Quiz of The Week

What does "LOI" stand for in commercial real estate?

a. Letter of Intent

b. Lease of Investment

c. Legal Ownership Index

ʇuǝʇuI ⅎo ɹǝʇʇǝ⅂ .ɐ

Random Tip of the Week

💰 Utilize 1031 Exchanges - Take advantage of 1031 exchanges to defer capital gains taxes and grow your investment portfolio efficiently.

Current Rates (Weekly Update)

10-Year Treasury - 4.28% (⬆️ .01%)

Fed Funds Rate - 4.33% (0%)

1-Month Term SOFR - 4.31% (⬇️ .01%)

About Nuvo Capital Partners

Nuvo Capital Partners is a niche market-focused multifamily investment platform operating throughout the Southeastern United States. As a dedicated sponsor (General Partner), we specialize in institutional quality real estate investments within these regions. Our team comprises industry professionals with 25+ years of combined experience, ensuring expertise and market knowledge. We pride ourselves on offering a transparent investment process, providing our investors with access to high-quality real estate opportunities while upholding integrity throughout.

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