Christopher Drzyzga

A majority of California’s commercial real estate industry participants (71%) anticipate distress levels to rise in the coming months, with 53% predicting that new development will decrease over the next three years, according to the Summer 2024 Allen Matkins/UCLA Anderson School of Management Forecast California Commercial Real Estate Survey. With interest rates remain the primary concern for the industry, these findings signal ongoing challenges for stakeholders across the commercial real estate spectrum, as well as emerging opportunities. John Tipton #cre #multifamily

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#Multifamily development slowdown can be attributed to two primary factors, cost to build and rising long term interest rates. Replacement cost is exceeding sales of newish multifamily on a $/unit basis and the spread between #treasury yields and #development yields has compressed as treasuries rose and yields remain flat. No surprise that starts are at a 10-year low given these two factors. #RETWIT #Multifamilydevelopment #CRE   https://lnkd.in/dknChxwu

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All but one of the four indices comprising the National Multifamily Housing Council (NMHC) October 2024 Quarterly Survey of Apartment Market Conditions indicated more favorable conditions this quarter. The Sales Volume (67), Equity Financing (63) and Debt Financing (77) indices all came in above the breakeven level of 50. Chris Bruen #cre #multifamily

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Demand for #multifamily has pushed absorption to one of its highest points in 24 years. In the first and second quarters of 2024 alone, 257,000 units were absorbed – "essentially in line with the all-time high set in the pandemic-era demand swell which saw about 270,000 units absorbed in the first half of 2021," according to a recent report from RealPage Market Analytics. Click here to read more from GlobeSt.com: https://lnkd.in/gvXHxwUg

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Great project utilizing CPACE to enable construction during these turbulent times in the lending market. Reach out to learn more about including CPACE in your capital stack.

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WS Communities returns the keys for 28 multifamily properties in Los Angeles, addressing over $1 billion in debt. This move impacts a substantial portion of the company’s portfolio in the region. The properties in question include both existing apartment buildings and development sites, reflecting the company's financial difficulties amid rising costs and market challenges​. This marks a major shift in WS Communities' strategy, as the company attempts to navigate a challenging economic landscape. The properties will revert to the lenders, who now face the task of managing and potentially offloading these assets in a volatile real estate market. This development highlights broader financial pressures facing real estate developers in Los Angeles and highlights the complexities of large-scale property management in an uncertain economic environment​. Do you think we will see a lot more properties go into foreclosure? https://lnkd.in/gBzXCH4W

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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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Multifamily Rent Growth Slows Amidst Record Completions 📉 Elevated multifamily completions to historic levels and rising expenses are squeezing profit margins for multifamily operators. 📊 Moody’s forecasts rent growth below 1%, with a continued high level of concessions. What we're seeing here in Columbus is an evident decrease in lead count. Our property management has to stay on top of market rent to compete for leads and follow up to convert as many of those leads as possible. Demand in Columbus remains strong and doing a fair job of playing catchup with with the wave of new supply. Let us know what you're experiencing, let's discuss 💬 #RealEstate #ColumbusGrowth #MultifamilyInvesting #HousingMarket #PropertyManagement

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The #multifamily property market is entering a new paradigm where #carriers and #insureds are embracing split tension within reason to strike harmony in our ever-dynamic #economy. And experts agree that success today requires a blend of creativity, consistency and sophistication. View more #insights here: https://lnkd.in/gHpwhPAp #propertymarket #multifamilyhousing #insurance #realestate #trends #thoughtleadership

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🏢 Post-Election Insights: How New Policies Could Impact LA’s Multifamily Real Estate Market 🏢 Now that the election results are in, it’s time to consider what new policies and priorities mean for the multifamily real estate market in Los Angeles. As city and state officials begin enacting their agendas, some key areas we’ll be watching include: 1️⃣ Rent Control & Tenant Protections: With new policies aimed at tenant rights, we may see tighter rent controls or more robust protections for renters. These changes could affect revenue projections and create a need for strategic planning among property owners. 2️⃣ Affordable Housing Initiatives: Increased investment in affordable housing, tax incentives for developers, and funding for low-income housing programs could create new opportunities in multifamily development. Developers and investors might benefit from staying informed on available grants, subsidies, or public-private partnerships that align with the city’s goals. 3️⃣ Zoning & Development Regulations: If changes to zoning laws or development requirements are implemented, this could open up or limit areas for new projects. Policies that support density in key areas may allow developers more flexibility to create new multifamily properties, while other regulations could limit expansion. 4️⃣ Tax Implications: The election results may also affect property taxes and investment incentives. Any shifts here could impact both the cost of operating existing properties and the financial viability of new investments. As we navigate the post-election landscape, adaptability will be key. Staying updated on policy changes and understanding their potential impact on the multifamily sector will help investors, developers, and property managers make informed, strategic decisions. What’s your take on how these new policies might reshape multifamily real estate in LA? Share your thoughts! 💬 #RealEstate #MultifamilyHousing #LosAngeles #PostElection

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The retail landscape is continuously changing, particularly in 2024, with evolving trends in dining and shopping. https://lnkd.in/d3uDXEjv #CRE #CBCWorldWide #cbcrgv

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Measure ULA, the so-called “mansion tax” on property sales of greater than $5 million that took effect last April, has “significantly” reduced sales of apartment buildings in Los Angeles and the San Fernando Valley, according to a report from NAI Capital Commercial. In LA, wrote NAI Capital Commercial’s J.C. Casillas, sales volume for these properties plummeted by 71% year-over-year in 2023, “with the number of deals sharply declining by 85% compared to the previous year.” #cre #multifamily

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A multi-family home strategy focuses on investing in properties that contain multiple units, generating rental income from each. A solid multi-family home strategy involves analyzing market trends, financing, and property management to optimize profits. #MultiFamilyHomeStrategy #RentalIncome #RealEstateInvesting #PropertyManagement #RealEstateStrategy #CashFlow #InvestmentProperty #MultiUnitInvesting #RealEstateWealth #RealEstateMarket #RealEstateGrowth #MultiFamilyInvesting Contact us for more info on how we can provide you with a successful home purchase, refinance or home equity loan

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CoStar reports, in Q1 2024, the U.S. multifamily market witnessed a strong resurgence in demand, absorbing 104,000 units—the highest figure since Q3 2021. Factors such as steady economic expansion and increased consumer confidence contributed to this rebound, prompting pent-up household formation. However, the market’s supply-demand dynamics remained imbalanced due to the completion of 140,000 new units during the same period. Although the vacancy rate rose by 10 basis points, it was the smallest increase observed recently, hinting at potential stabilization. Notably, rent growth seems to be recovering, with national annual growth reaching 0.8%. While most major markets are expected to return to positive rent growth in 2024, some may struggle to reach their pre-pandemic averages, particularly in Sun Belt regions. Read more: https://bit.ly/3QI6LqC #MarketRent #MultifamilyMarket #SunBeltRegions #RentTrends #RentGrowth

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