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Multifamily Financing: Allocations Increased and Lenders are Eager to Deploy Capital in 2021

Multifamily Financing: Allocations Increased and Lenders are Eager to Deploy Capital in 2021
Multifamily Financing: Allocations Increased and Lenders are Eager to Deploy Capital in 2021 Bridge Financing Multifamily remains one of the most appealing asset classes. Deals located in core-markets or strong growth secondary locations can expect interest rates in the low 300s over LIBOR range. Total coupons are hovering at all-time lows with leverage pushing into the 75%-80% of cost range. Despite an uptick in spreads above 2019 levels, floating rate indexes (LIBOR & SOFR) have significantly decreased resulting in interest rates at similar pre-pandemic levels. Additionally, Lenders are less concerned over hedging index volatility as floors continue to contract. While the most advantageous terms remain available for loans with proceeds in excess of $15-$20M, smaller bridge deals can fund with banks and private money funds with a pricing premium between 150-300bps. Permanent Financing Bank Lenders continue to quote rates for non-recourse perm debt on multifamily assets in the ultra-low range of 3.10%-3.50%; depending on the length of the fixed rate term; 5, 7 or 10 years. Banks are scrutinizing tenant credit profiles and rental collections during underwriting. Many Bank institutions continue to offer discounts on pricing when transferring considerable deposits. The CMBS market is off to a strong start this year. Expectations remain high for 2021 with total originations volume predicted at $107B compared to $60B over the prior year, a 78% increase YOY. AAA bonds have executed extremely well in the most recent conduit securitizations exhibiting an average of Swaps +62; the BANK 2021-BNK31 achieved a low of +61. These......
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The 2020 City Center Shift to Suburbia

Across the globe, multi-family markets of all types have been impacted by the COVID-19 pandemic of 2020 – having a varied impact on occupancy levels. With restricted amenities, online universities, and the option to work remotely, city centers are simply no longer able to demand the premium they historically did. With the desire for more space, and lower costs, we are seeing an increase in demand and renters in suburban areas with a departure and softening of the urban market. However, real estate professionals are struggling to fill vacant buildings now and are no longer in a position to wait for the future normal to arrive – they need to address today’s normal now. Here are some steps that real estate professionals can take today in order to minimize losses and turn a struggling balance sheet into a healthy financial reflection: 1.Leverage Proptech. One of the biggest advantages real estate professionals can capitalize on when utilizing proptech is the reduction of in person meetings to view/assess a property or a rental unit. By incorporating proptech into your business models you will be a step ahead of the game by having access to more potential tenants at any given moment in time. For example, instead of allocating one appointment slot to provide a tenant with a tour of a property, property managers can incorporate proptech such as VR (virtual reality) technology which provides access to multiple floorplan tours for various tenants at any given time without requiring the property manager to be on si......
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The Smarter Lock: A Technological Perspective

Multifamily properties are getting smart about locks. They are installing locks that make their properties safer, smarter and more secure. What I’m talking about of course are smart locks. These are the trending keyless lock systems that residents open with their smart phone or credential. Residents love them. In fact, it seems they are more than happy to toss the notion of traditional keys out the door. Yet it’s the properties that stand to gain the most by switching from traditional locks to the smarter set. After all these keys streamline operations, reduce key management costs, and boost security. The only question then is which smart lock is best suited for a multifamily property? The answer lies within the technology. It’s common knowledge that tech tools are only as sophisticated as the software that supports them. So is the case with smart locks. That’s why many multifamily properties lean toward smart locks that are designed for open integration. It just makes sense. For one, it means the smart lock manufacturer is honed in on what they do best: make good locks. They are not trying to become a software company. Perhaps that is a topic for another post, but still it’s a fact worth noting. More to the point, an open integration design makes smart locks highly adaptable. This is important because it grants properties the flexibility to choose the best available third-party access management software solution that suits their unique needs today and in the future. So, rather than adding one more ......
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Smart Locks: Follow the ROI

Every aspect of a well-run multi-family property is, or should be, vetted. Do the systems, procedures, employees and products set the property up for success? The answer should always be a resounding “yes,” right down to the choice in locks. After all, this hardware keeps your residents and their property safe day in and day out. Did you know, however, some locks can return more on your investment than traditional lock-and-key security ever could? It’s true. They are called smart locks. These next-generation security devices allow residents to use their smartphones or smart credentials to open their locks. But there’s more to smart locks than meets the eye. Follow the ROIs: Return on intelligence. Facility staff can configure, manage and monitor smart locks from virtually anywhere using cloud-based mobile or web apps. This desirable no-tour functionality makes routine chores a snap for facility staffers who no longer need to walk to a resident’s door to deal with lost keys and the like. It can all be safely and efficiently managed from their computer, tablet or smartphone. Return on integrity. Smart locks increase the safety of a property, while also reducing its liabilities. Look for UL-rated smart locks manufactured by a trusted brand that also meets ANSI/BHMA Grade 2 requirements. Return on impressions. The multi-family market is increasingly competitive. More people are moving in. More properties are going up. Separating your property from the pack has never been more important. Smart locks help you do just that. They offer security, prestige and give faci......
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Inspections: Failing is not an option!

Inspections: Failing is not an option!
If you own a property in Los Angeles then you know how important inspections are. Inspections could be the breaking point of your profit if you fail, therefore it is important for owners to be informed of the inspection process. The Los Angeles Housing Code Enforcement Divison is cracking down on unapproved construction and unsafe living conditions. It is stated in the their mission statement "It is the mission of the Los Angeles Housing Department Code Enforcement Division to identify and facilitate the abatement of physical conditions and characteristics of substandard and unsanitary residential buildings and dwelling units which render them unfit or unsafe for human occupancy and habitation and which conditions and characteristics are such as to be detrimental to or jeopardize the health safety and welfare of their occupants and of the public." On top of the routine inspections given by the Housing department, there is a separate division under it called the Complaint Department. This department's sole purpose is for tenants living in a property who feel their living conditions are unsuitable for them to live in. The city inspection department answers within 72 hours. After, the department has spoken to the complainee, an inspector will come to visit the property and unit of the tenant that made a complaint. In most cases the owner is unaware of the inspection happening because it is not required to inform the property owner until after the inspection is completed. If the inspector finds three or more violations in the building,......
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Apartment Website vs. Multi-Family City-Specific Landing Page

Apartment Website vs. Multi-Family City-Specific Landing Page

When you are choosing what to put in the “Website” field of your Google Places page, consider the pros and cons of both homepage and location pages. Both can affect your rankings, but it is a debate about which is the best choice.

Homepage as a Landing Page

1.This often has the most page authority from any links the site has earned, so most of your links will already be pointing here.

2. It can be difficult to make the title tag relevant to multiple locations. You might also be worried that NAP info for many different locations can harm rankings.

City-Specific Landing Page

1. Location-specific pages often better target your property’s location. In this way you can point toward just one main city rather than many.

2. Often, most businesses’ location-specific pages are overly optimized and may even be thin on content, which can harm rankings.

If your page has already earned high rankings on Google, you should not consider making any changes. However, if you are having trouble with rankings or just beginning local SEO, consider using your homepage as a landing page. Your homepage will often have the best “link juice.” Especially now that organic rankings and Google Places rankings are not mutually exclusive, you can use your homepage to serve both ranking purposes. 

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What is the OFAC Terrorist Watch Search and Why is it Important to Real Estate Professionals?

What is the OFAC Terrorist Watch Search and Why is it Important to Real Estate Professionals?
When choosing screening services have you ever wondered what the OFAC search was, and if it was really necessary to use for your company? Recent events like the tragedy in Boston have placed a lot of emphasis on America’s terrorist watch list, and what it really means. The Office of Foreign Asset Control, or OFAC is part of the U.S. Department of Treasury’s Office of Terrorism and Financial Intelligence. It administers and enforces economic and trade sanctions based on national security goals against targeted foreign countries and regimes, terrorists, parties engaged with weapons of mass destruction, and other threats to the national security, foreign policy or the economy of the United States (US Department of Treasury). So how does this search affect you and your business? In short: the list they administer and enforce tells you who and who you cannot do business with legally. The list they create of the restricted parties is known as the "Specially Designated Nationals List" (SDN), and is available on their website. A recent LinkedIn poll showed that 78% of Real Estate professionals use the OFAC search and believe it to be an important tool, while 5% used it, but didn’t really know what it was, or what they were getting, and 16% did not use it in their tenant or pre-employment screening at all, or knew what it was. While the SDN list is extensive, it is important to note that you always need to perform due diligence with it (just as with any other......
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