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Analyzing the Late 2023 Jump in CRE Delinquencies
Unveiling the Market's Secrets from Behind the Scenes
Nuvo Capital
January 25, 2024
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"Ongoing challenges in commercial real estate markets pushed the delinquency rate on CRE-backed loans higher in the final three months of 2023. Delinquency rates jumped to 6.5% of balances for loans backed by office properties, and to 6.1% for lodging-backed loans. Delinquencies for loans backed by retail properties remain elevated from the onset of the pandemic but were unchanged during the quarter. Delinquency rates for multifamily and industrial property loans both increased marginally but remain much lower.”
- Jamie Woodwell, Vice President, Research at Mortgage Bankers Association
Recent Multifamily Sales (Click to view details)
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Recent Multifamily Loans (Click to view details)
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Question: When structuring a multifamily investment partnership, how do you establish clear roles and responsibilities among partners to ensure effective collaboration and decision-making? | Answer: Structuring a multifamily investment partnership requires a meticulous approach to delineate roles and responsibilities among partners. Begin by clearly defining each partner's expertise, contributions, and expectations. Establish transparent communication channels and decision-making processes to ensure alignment on key investment strategies and objectives. Draft a comprehensive partnership agreement that addresses potential scenarios and outlines dispute resolution mechanisms. Regularly revisit and update the agreement to adapt to changing circumstances. By fostering clarity and accountability, a well-structured partnership enhances collaboration and contributes to the overall success of the multifamily investment. |
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 | A Private Equity Head on Investment Opportunity in "Transitional" 2024 Heading into 2024, rate cuts are the silver lining on everyone’s mind. Still, Ron Dickerman, founder and president of private equity firm Madison International Realty, sees 2024 as a “transitional year.” As capital cautiously comes off the sidelines, Dickerman talks opportunity in the wall of maturities and which asset classes he’s eyeing. |
Quiz of The Week
In a commercial lease, what does "CAM" stand for?
a. Centralized Asset Management
b. Common Area Maintenance
c. Commercial Access Method
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Random Tip of the Week
📝Evaluate Property Location Strategically - When investing in real estate, prioritize properties in locations with strong growth potential and amenities. Proximity to schools, shopping centers, public transportation, and job centers can enhance property demand and rental income, contributing to the long-term success of your investment.
Current Rates (Weekly Update)
10-Year Treasury - 4.17% (⬆️.09%)
Fed Funds Rate - 5.33% (0%)
1-Month Term SOFR - 5.33% (0%)
About Nuvo Capital Partners
Nuvo Capital Partners is a niche market-focused multifamily investment platform operating in the Southeast. 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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