Multifamily Braces for Inflation

Unveiling the Market's Secrets from Behind the Scenes

July 03, 2025

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“We went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs.”

- Jerome H. Powell, Chair of the Board of Governors of the Federal Reserve System

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question:

What is the significance of the "Debt Service Coverage Ratio (DSCR)"?

Answer:

The Debt Service Coverage Ratio (DSCR) is a metric used by lenders to assess a property's ability to cover its mortgage payments. It's calculated by dividing the property's Net Operating Income (NOI) by its annual debt service (principal and interest payments). A DSCR of 1.25x or higher is generally preferred by lenders, indicating that the property generates 125% of the income needed to cover its debt, providing a safety net against vacancies or unexpected expenses.

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The Greatest Ever Panel on the World's Most Important Market

Recorded live in NYC, this special episode brings together top thinkers to discuss the US Treasury market. With the US deficit soaring, who will buy the influx of government bonds? We delve into concerns about market volatility and liquidity with Nellie Liang (Brookings Institution, former Undersecretary of the Treasury), Ira Jersey (Bloomberg Intelligence), and Josh Younger (Columbia University).

Quiz of The Week

What is the purpose of a "lease agreement" in a multifamily setting?

a. To outline the terms and conditions between landlord and tenant

b. To provide a list of local restaurants

c. To document the property's construction history

ʇuǝuǝʇ puɐ pɹoʅpuɐʅ uǝǝʍʇǝq suompuoɔ puɐ sɯɹǝʇ ǝɥʇ ǝuᴉʅʇno oꓕ .ɐ

Random Tip of the Week

📊 Regularly Analyze Your Competitor Rents - Stay competitive by consistently monitoring what similar properties in your area are charging. This ensures your pricing is optimal for both attracting new tenants and retaining existing ones.

Current Rates (Weekly Update)

10-Year Treasury - 4.25% (⬇️.04%)

Fed Funds Rate - 4.33% (0%)

1-Month Term SOFR - 4.32% (⬆️.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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