Preferred Equity and Profits

Unveiling the Market's Secrets from Behind the Scenes

January 16, 2025

📩Was this forwarded? Join for future investigations, Sign Up Here

“You have $650 billion worth of multifamily debt coming due, merchant builders who have [preferred equity loans] that are eating into their profits, banks that want their loans paid down. So there’ll be a very robust transaction market over the next couple of years.”

-Richard Campo, Managing Partner at Merit Living Companies

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question:

What strategies can be employed to minimize vacancy rates in multifamily properties during economic downturns?

Answer:

Strategies to minimize vacancy rates in multifamily properties during economic downturns include offering competitive rental rates relative to market conditions to attract tenants. Implementing tenant retention programs such as lease renewals with incentives or long-term lease options can stabilize occupancy levels. Additionally, maintaining property upkeep, enhancing amenities, and providing responsive property management can improve tenant satisfaction and reduce turnover during challenging economic periods.

🕵️🔎Want to get your question answered? Click here to submit your question

‎

CRE Market Context: 2025 Predictions, Delinquency…

In this week's episode of The TreppWire Podcast, we delve into the current landscape of the commercial real estate (CRE) market, providing some much needed context for 2025. We begin by analyzing the latest CMBS delinquency data, offering our interpretations and breaking down the numbers dating back to January 2000, when Trepp first began tracking these rates. We spend some time reflecting on 2024 and provide additional predictions for the new year in terms of issuance, distress metrics, interest rates, and other factors that may impact the CRE market.

Quiz of The Week

What does the term “cash flow” mean in the context of multifamily real estate?

a. The total amount of money received from the sale of the property

b. The difference between rental income and expenses

c. The initial investment required to purchase the property

sǝsuǝdxǝ puɐ ǝɯoɔuᴉ lɐʇuǝɹ uǝǝʍʇǝq ǝɔuǝɹǝɟɟᴉp ǝɥꞱ .q

Random Tip of the Week

✅ Create a Positive Reputation in the Market - Build a reputation for being a responsive and fair landlord. Word of mouth can help you attract high-quality tenants and retain them long-term.

Current Rates (Weekly Update)

10-Year Treasury - 4.79% (⬆️ .11%)

Fed Funds Rate - 4.33% (0%)

1-Month Term SOFR - 4.30% (⬆️ .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.

📩 Was this forwarded? Join for future investigations, Sign Up Here