Garrett Pfau

What's Happening in #Tampa / #StPete: Something to take note of is commercial real estate loan delinquencies are still rising but at a slower pace than they have been since the post-pandemic. Overall, The commercial real estate market is under scrutiny as delinquencies in commercial real estate loans rise, particularly in the office sector where occupancy rates and property values are declining amidst a prolonged period of higher interest rates. Lenders are navigating these challenges by renegotiating terms with borrowers and extending maturity dates, but concerns linger over the $929 billion in outstanding commercial mortgages set to mature this year. Despite this, Wells Fargo economists express cautious optimism, noting a slower pace of price declines and anticipating a potential turnaround as monetary policy becomes less restrictive. However, lenders remain cautious, leading to a slowdown in lending activity within the sector. While there was a slight uptick in year-over-year commercial real estate loan growth in the first quarter of the year, it remains significantly below the peak seen in 2022. Traditional lenders are increasing reserves for potential write-offs or loan workouts, limiting the capital available for real estate loans. Some banks are mitigating their exposure by selling off their commercial real estate loan portfolios, contributing to a decrease in banks exceeding regulatory guidance for commercial real estate concentration. Despite these challenges, there are still opportunities for creative financing depending on borrowers' relationships and appetite for cost. Notably, JPMorgan Chase & Co. has seen substantial growth in its commercial real estate loan portfolio due to its acquisition of First Republic Bank. Overall, while the commercial real estate market faces headwinds, there are signs of cautious optimism amidst ongoing challenges and adjustments in lending practices. How are traditional lenders adjusting their lending practices in response to increased reserves for potential loan write-offs, and what implications does this have for the availability of capital for real estate loans? https://lnkd.in/e8WHztry #banker #loan #commercialrealestate #economicindicators #riskmanagement #investmentstrategy #office #realestateloans #cre #cremarket #realestate Tampa Bay Business Journal

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The Multifamily market remains dynamic, though sales volume is far from the heights of 2021 and early 2022. Rent growth has been most robust in areas with lower levels of development, and the Midwest, Mid-Atlantic, and Northeast are topping recent gains, a 180-degree change from recent years when Sunbelt markets dominated the list. Download the 2024 #Multifamily Outlook report to learn more: https://ow.ly/HMnm50SIa8s #ColliersCapitalMarkets #ColliersResearch Aaron Jodka Will Mathews

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Every CRE Broker I Know That Produces Over $1,000,000 in GCI Annually Has These 3 Traits… 1) They're selling clients a differentiated offer from their competition... - This is usually a combination of the product type they're selling and the value proposition they bring to the table. There is nobody to compare them to because they're in a league of their own. The way they got here is by points 2 & 3. 2) They are more focused on market knowledge & value creation than prospecting... - Their real focus is on being that best at what they do and providing more value than anybody else. Whenever people know who you are, what you do, and also that you are the best at what you do... you become a deal magnet. The brokers who provide the most value and are consistent over time will come out on top. 3) They are master marketers, and think outside the box... Hosting Conferences, Client Events, Detailed Market & Transaction Reports (that isn't just regurgitated data from someone else), and much more. They don't do what everybody else is doing, but they use their entrepreneurial spirit to continuously tell the market why they are the best option, and it truly is undeniable. Share this to your feed to help someone else!

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Shadow and Substance: The Emerging Story of CRE Lending The prevailing narrative in commercial real estate (CRE) lending is reassuringly optimistic: offices are stable, and banks report non-performing loans (NPLs) of less than 1%. However, beneath this calm surface, a storm is brewing—a confluence of hidden challenges and emerging threats that starkly contrast with the mainstream account. Recent data indicates that distressed bank office loans could escalate to between 3% and 5% by year's end. This forecast, grounded in hard data and historical patterns observed in financial markets, is supported by the concept of "Shadow Inventory," which includes distressed debts and assets poised for recapitalization through loan sales. This inventory reveals figures about 2 to 3 times higher than the non-performing loans officially reported on bank balance sheets. Data from the Federal Reserve Board as of the end of 2023 shows that banks held the largest share of CRE debt, with 1.025% or $25.08 billion in total non-performing CRE loans across various sectors. More notably, in the non-owner occupied CRE sector, banks reported 1.593% or $18.69 billion in total non-performing CRE non-owner occupied loans as of March 31—substantially higher than the oft-cited figure of less than 1%. The total stressed loans in this category reached 2.46% or $28.87 billion, highlighting a significant disconnect between public perception and the harsher realities of financial data. This gap between perception and reality suggests a landscape fraught with financial instability, often overlooked in upbeat economic reports. The implications of such discrepancies are profound, impacting local businesses and the gig economy, as businesses cut hours or close and competition in freelance work increases. Managing financial distress in CRE involves the strategic use of Troubled Debt Restructurings (TDRs). Major banks have restructured over $8.6 billion of CRE loans as TDRs, which, while helping to contain the NPL figures, also mask the potential for future crises. These TDRs, intended to provide temporary relief, often falter within 18 to 24 months post-modification. The narrative surrounding CRE lending is not just about numbers and policies; it’s about the resilience and adaptability required in an ever-changing economic landscape. With a clear-eyed view of these challenges, stakeholders can better navigate the uncertain waters of commercial real estate lending, making informed decisions that foster long-term stability and growth. #CRE #Banking #Lending #CommercialRealEstate #RE #Equity #Debt #Fed #FederalReserve #PE #NYCRealEstate

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1031 exchange is arguably the best and most lucrative tax real estate break the Federal government gives, but it's also not easy to navigate and can be counterintuitive. Join me as we demystify the intricacies of 1031 exchanges, and put you in a good position to take advantage of this tax break you can’t afford to pass on, or fail trying. See you Tuesday at 10:30 am (or maybe 10:31:) =================================================== Join me this Tuesday July 16 @10:30 EST for a 1031 Webinar. Registration is now open. Just click on the link is in the comments below. Hope to see you there! Please repost to your network to share this valuable information! L.earn as we L.ayout and C.larify L.ongwinded L.abrynthine and C.omplex rules and procedures of 1031 Exchanges Please note that Nuco Filings Corp is not a Qualified Intermediary nor does it provide any 1031 related service. This webcast is being provided by Nuco Filings Corp solely for informational purposes as part of its mission to educate and inform clients on relevant real estate related topics. #1031exchange #1031webinar #taxbreaks #realestatetax ------------------------------------------------------------------------------------------- Hi, I am Tzvi, the LLC Warrior. While I am not having fun with ancient weapons in the desert… I love helping people choose the right entity, form it properly, and protect it, so it can protect you! 📢 Give me a shout if you want 🎯 to pick my brain about LLCs, FinCEN/BOI Filings, 1031 exchange 🎯 access to our incredible free LLC Management Portal.

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Investor preference is returning to the multifamily sector, according to a new survey by CBRE—but high interest rates and limited credit availability is stemming the optimism. Read Market Monitor for Origin’s Managing Director of Investment Management Marc Turner’s interpretation of the outlook. Link in our comments below. #multifamilyrealestate #realestateinvesting #interestrates 

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According to a new report from RealPage Market Analytics, markets for apartments in urban cores are catching up with their suburban competitors in terms of both occupancy and rent growth. Read on. #housing #multifamily

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“The senior housing industry has seen consistent improvement across key fundamentals over the last 11 quarters…we predict that in the second or third quarter of this year, we’ll be back to pre-pandemic occupancy levels. From a market standpoint, we’re looking ahead with optimism.” NIC’s Lisa McCracken spoke with Michael Bull, CCIM of America’s Commercial Real Estate Show with Bull Realty about industry pressures and headwinds impacting NIC’s positive 2024 forecast. Listen now: https://hubs.li/Q02vbkt_0

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Let's dive into a hot topic today: rent control and its impact on multifamily properties! According to a recent article from Globe Street, based on research by the National Apartment Association, properties with rent control have some interesting financial dynamics. Here's the breakdown of where every dollar goes: - $0.93 of every dollar goes towards operating and maintaining the building. - $0.46 for mortgage payments. - $0.27 for operating expenses (like utilities, insurance, and maintenance). - $0.11 for property taxes. - $0.07 for payroll (property managers and maintenance staff). - $0.02 for capital expense reserves (big repairs like new roofs or parking lots). - And just $0.07 left for profit. The report highlights that rent controls can lead to increasing expenses year after year, but rents can't necessarily rise to match these costs. This squeeze could mean fewer people will want to invest in these properties, potentially leading to deterioration. In fact, the report mentions that rent control is linked to more inadequate housing—16% of properties are considered inadequate, and another 15% moderately inadequate. Plus, neighborhoods with rent caps see issues like increased crime (16%), poorer school perceptions (15%), and more trash (20%). Ultimately, the long-term impact could be that housing stock doesn't meet safety and reliability standards. While the National Apartment Association supports affordable housing projects, they believe policies that limit the ability to maintain properties well are counterproductive. They argue that building more supply will lower demand and prices, making housing more affordable. What do you think? Is rent control a good or bad thing? Are these stats fair? I'd love to hear your thoughts in the comments!

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The multifamily finance sector is set for a resurgence, driven by increased rental demand, favorable financing, and market stability. As highlighted by Andy Bratt, CCIM, featured in the latest Multi-Housing News article, these factors create exciting opportunities for investors. At Gantry, we're ready to support you with tailored financing solutions. Let's discuss how we can help you achieve your investment goals in this promising sector! Read more here: https://lnkd.in/dUMrB_6J #MultifamilyFinance #RealEstate #Gantry #InvestmentOpportunities #ThoughtLeadership #GantryInsights #MarketTrends #CommercialRealEstate #Finance

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NOI is a crucial metric for the multifamily industry. We've got a breakdown of how to calculate Net Operating Income PLUS suggestions for how to improve it in today's rental market.

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Multifamily real estate's tough times may spell opportunity for bargain buyers! Check out the latest insights on GlobeSt.com. #MultifamilyRealEstate #Opportunity https://lnkd.in/gEkFUpkV

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A special report from Marcus & Millichap was just released explaining how demand is reaching a first quarter record, however new supply is curbing vacancies and rent progress. The report indicates substantial momentum in multifamily demand and a new high in apartment completions, while highlighting near-term turbulence in housing dynamics. To view the report, please visit https://lnkd.in/ggjqdi34 Looking for investment opportunities? Please reach out to Ryan Engle, Andrean Angelov, Sam Antreasian, Zack Mahoney, and Jake Lenti. #EngleAngelov #CommercialRealEstate #CRE #Multifamily

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The surge in single-family rental property construction reflects the evolving preferences of renters, particularly millennials seeking spacious homes without the commitment of ownership. This trend, driven by high home prices and mortgage rates, has sparked interest from institutional investors, leading to a significant increase in build-to-rent housing. The Sunbelt states, especially Texas, Arizona, and Florida, are hotspots for this activity, with metro areas like Phoenix and Dallas witnessing substantial growth. For investors looking to capitalize on this trend, options include building single-family rentals, developing rental communities, joining private equity funds, participating in real estate crowdfunding, or investing in REITs. Read the full article here 🔗 https://lnkd.in/g42P_b4E . . . #birminghamalabama #biginsurancegrup #biginsurance #alabamainsurance #alabamapropertyinsurance #alabamarealestate #propertyinsurance #propertymanagement #insurance #insurancecoverage #nationwidecoverage #localinsurance #homeownersinsurance #commercialinsurance #riskmanagement #businesscoverage #propertyprotection #insuranceagency #realestateinsurance #protectyourassets #secureyourinvestment #coverageoptions

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Team Lala just closed on 610 W 204th Street for the price of $3,800,000 The metrics were as follows: Approximately 5.2x rent roll, 9% cap rate, and a little over $79,000/unit. The loan amount was 75% Loan to Value at 7% interest and the insurance came in at below $900/unit. (Even the bank was amazed at the underwriting!) Using conventional wisdom, this is what most investors would consider "a great deal" although we received a ton of resistance in the market when we first launched the listing. Sometimes "bad news" clouds one's judgement. No one will be able to time the bottom, and it will get bumpy, but our team hasn't seen these metrics in about 20 years. Many investors have been awakened, even under a challenging regulatory environment and escalating building expenses. Until and unless we go full-blown "communism," you might want to start sharpening your pencil and get on our list: teamlala@rmfriedland.com

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CoStar reports in the first quarter of 2024, Greater Los Angeles multifamily sales dropped to $971 million from $1.3 billion in the previous quarter, below the decade-long average of $2.2 billion. Private buyers now dominate, making up over 80% of acquisitions, up from their historical 70%, focusing on well-priced, high-quality locations. Institutional buyers and private equity firms have retreated, representing less than 20% of activity due to high debt costs, new transfer taxes, and local business concerns. Despite the slowdown, significant deals continue. Notably, FPA Multifamily purchased a 525-unit downtown tower at a substantial discount. Investors remain cautious, needing attractive returns to offset challenges like tenant eviction laws and rent control. Read more: https://bit.ly/3VD5Ysm #MarketRent #RealEstate #MultifamilyRealEstate #LosAngelesRealEstate #RealEstateMarket

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Just Closed: $12 Million Loan (Mixed-Use) 🔹 Five-year term 🔹 Two years interest-only 🔹 5-3-1-1-1 PPP 🔹 Non-recourse 🔹 Balance sheet lender This client believes rates will come down in the next couple of years, so we structured a deal that offers the flexibility of a bridge loan with the stability of a low-rate fixed loan. Just like a bridge deal, it has I.O. and the ability to get out after two years with just a 1% prepayment penalty. We were able to do all this at just 225 bps over Treasury and with a lower entry fee of only 25 bps versus 1 point in, 1 point out on a traditional bridge loan.

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