Multifamily Resilience in 2025

Unveiling the Market's Secrets from Behind the Scenes

February 27, 2025

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“Despite ongoing challenges like inflationary pressures, high interest rates, and rising distressed opportunities, investors continue to recognize significant opportunities in the multifamily sector. Although market fundamentals are expected to remain soft through 2025 with new supply coming online, the core drivers of rental housing remain solid, and investor confidence in the sector remains high.”

-Ernest Katai, EVP Head of Production at Berkadia

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question:

How do you calculate the internal rate of return (IRR) for a multifamily investment, and what does it indicate about its performance?

Answer:

Calculating the internal rate of return (IRR) for a multifamily investment involves discounting all future cash flows (income and proceeds from sale) to their present value and solving for the rate that equates the sum of these discounted cash flows to zero. IRR indicates the annualized return earned on the investment over its holding period, considering both the timing and magnitude of cash flows. A higher IRR typically reflects better investment performance, suggesting that the project generates higher returns relative to its initial investment and risk profile.

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Bullish on CRE?

In this special episode of The TreppWire Podcast, Michael Bull, CEO of Bull Realty and host of America’s Commercial Real Estate Show, shares wisdom from 35+ years in CRE and $8B+ in transactions. From leasing apartments in college to running a top brokerage, he highlights the role of integrity, quality service, and creative problem-solving in closing complex deals.

Quiz of The Week

What is “appreciation” in the context of multifamily real estate?

a. The reduction in value of a property over time

b. The increase in the property’s value over time

c. The steady rental income generated from the property

ǝɯᴉʇ ɹǝʌo ǝnlɐʌ s’ʎʇɹǝdoɹd ǝɥʇ uᴉ ǝsɐǝɹɔuᴉ ǝɥꞱ .q

Random Tip of the Week

📝 Evaluate the Property’s Financing Options - Assess different types of financing, such as conventional loans, FHA loans, or seller financing, to ensure you get the best terms for your investment.

Current Rates (Weekly Update)

10-Year Treasury - 4.29% (⬇️ .26%)

Fed Funds Rate - 4.33% (0%)

1-Month Term SOFR - 4.31% (0%)

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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