The Mogharebi Group

Happy 4th of July from The Mogharebi Group! Today, we celebrate the spirit of freedom and unity that defines our nation. Have a safe holiday.

Ryan Kidwell, Senior Vice President at The Mogharebi Group, shared his insights regarding recent deal velocity in the Pacific Northwest and why, from his perspective, more investors are eyeing the region. As Ryan states, “Currently, investors are favoring garden-style construction over high-rise. High-rise projects often don't make financial sense due to their high costs. Additionally, deals are often structured to offer the best pricing to sellers by including developer terms, meaning the sale doesn't close until permits are issued. Some sellers opt for seller financing if they don't have existing debt on the project." These insights, along with Ryan Kidwell’s continued success in the region, solidify The Mogharebi Group’s understanding of developers, investors, and lenders working hard to make projects viable. Regardless of the region, housing is needed, and developers are the visionaries who fill that void. The Pacific Northwest is a desirable place to live, giving developers the confidence to commit to projects. Even with various risk factors, investors and lenders are acclimating to the market and putting the necessary pieces in place to fund and develop new projects

I had the opportunity to attend the LightBox Mid-Year CRE Market Update & 2H Forecast. Among the topics shared was the LightBox Monthly CRE Activity Index, which showed a modest improvement in May 2024, marking the third consecutive month of increased commercial real estate activity. The Index, which tracks daily transactions, rose 2% from April to 91.1, reflecting the highest levels since June 2023. Despite the lack of anticipated interest rate cuts by the Federal Reserve, the market is showing signs of steady recovery, driven by increased deal-making activities across various #CRE sectors. The Mogharebi Group's recent uptick in listings and transaction volume reflects this sentiment. While transactions remain challenging, we see more buyers, sellers, and lenders working harder to solve issues rather than putting their pencils down. In the last 90 days, the treasury yield peaked at 4.70% and is currently at 4.25%. The combination of a lower treasury yield, consistent operations, and market acclimation has improved the confidence required to transact. For the full report, visit the link below: https://lnkd.in/gu58N8Da

On Tuesday, June 18th, don’t miss out on the Bisnow Multifamily Summit in San Diego! The Mogharebi Group will be represented by our National Sales Manager, John Francis Rodiles and our VP of Affordable Housing, Shawn J. Bolour. We’re expecting this conference to offer a great opportunity to share thoughts with industry leaders, talk deal flow and acquisition activity, and gather insight about San Diego’s development pipeline as a whole.   If you’d like to connect at the conference please email our team at John.Rodiles@mogharebi.com and Shawn.Bolour@mogharebi.com. For questions regarding the San Diego market please email Jordan Pakzad at Jordan.Pakzad@Mogharebi.com. See you there!

National Sales Manager, John Francis Rodiles, and VP of Affordable Housing, Shawn J. Bolour, recently attended the Affordable Housing Conference in Los Angeles, hosted by Bisnow. As anticipated, many new developers entering the affordable housing sector over the past 5 years have been building properties without parking or public subsidies. Additionally, an influx of institutional capital seems to be actively investing in this asset class. The Mogharebi Group also garnered significant interest from attending developers regarding our new 51-unit affordable housing deal in Los Angeles, currently listed by our trusted advisors Shawn J. Bolour and Keon Truth. Visit the link below for more details: https://lnkd.in/gfxfVDg3

The apparent paradox between the downturn in #multifamily confidence and the optimistic trajectory of Apartment #REITS' guidance epitomizes the multifaceted nature of the real estate sector. Highlighted in two articles from GlobeSt.com, titled “Multifamily Confidence Slide" and “Apartment REITS Increase Guidance," these conflicting headlines serve as a poignant reflection of the industry's complexity. John Francis Rodiles, National Sales Manager at The Mogharebi Group, “If you see conflicting headlines, the answer is often in the details.” We are seeing rent growth help cover increases in operational expenses for many multifamily owners. Concurrently, imminent refinancing will continue to pressure equity positions and bank balance sheets.   Check out the articles:  https://lnkd.in/g7eiKUpC   https://lnkd.in/gwx5yWxg

John Francis Rodiles and Shawn J. Bolour are looking forward to attending next week’s Bisnow Affordable Housing Conference in Los Angeles California! Given that #affordable housing remains a pressing topic, this conference offers an invaluable opportunity to gain insights and observations from the industry’s leaders. To schedule a meeting or to connect at the event, please send an email to either: @John.Rodiles@mogharebi.com @Shawn.Bolour@mogharebi.com

The Mogharebi Group is thrilled to announce that we are expanding our team! We are actively searching for a #multifamily advisor specializing in the Western United States #CRE market. We are looking for candidates with a comprehensive understanding of the market, from underwriting to lending, and who possess the confidence to ask the hard-hitting questions necessary to qualify buyers, sellers, buildings, and lenders!. #Hiring #CRE     To apply via LinkedIn, please see the job posting below. https://lnkd.in/gwpNx_Re

The Mogharebi Group is thrilled to announce that Brett Bayless, Bryan LaBar, and Nicholas Earl have been recognized as #CoStarPowerBroker Quarterly Deals winners for closing a top #CRE transaction in Q1 2024. This recognition, presented by CoStar Group, stands as a testament to their hard work and unwavering dedication to providing the best for our clients!

Keon Truth , John Francis Rodiles, Bryan LaBar, Brett Bayless represented The Mogharebi Group at last week’s Connect CRE Los Angeles conference. Of the six panels, The 'Industry Leaders: a View From the Top' panel, in particular, made a variety of compelling points about the current state of the #CRE market. Mentioning key topics such as velocity, affordability, and polarizing values, the panel echoed John Rodiles’ own market observations, as he puts it “we are simultaneously experiencing both a buyer's and a seller's market”. Additionally, there was a notable emphasis on the geographical location of commercial real estate investments. For example, typical multifamily buildings (without specialized amenities / layouts) are trading at aggressive cap rates, often due to their prime location, whereas  luxury buildings down the street might transact at lower cap rates. For the full event recap, visit: https://lnkd.in/gZeU6qaC