Multifamily Is The Most Liquid Sector, Winston Rowe and Associates

Multifamily transaction volume topped $138 billion last year and hit $32 billion in the first quarter of 2021, making the asset class the most liquid among all commercial real estate property types.
By: Winston Rowe and Associates
 
NEW YORK - June 8, 2021 - PRLog -- A new report shows that closed-end fund closings targeting multi-housing assets have totaled $68.4 billion since 2016 and will provide an ongoing source of liquidity, especially as pricing discovery in the midst of COVID-19 resulted in more opportunities for private capital to invest in the space.

Dallas-Fort Worth, Atlanta and Phoenix emerged as the top-most liquid markets in the US, supplanting the historical mainstays of Los Angeles and New York. Capital momentum is also increasingly targeting garden-style and mid-rise assets in less dense locations.

And both lenders and borrowers have strong appetites for commercial and multifamily mortgages, making debt liquidity abundant, the report states. Q1 multifamily mortgage borrowing totaled $51.8 billion in Q1, with agency lenders capturing 62% of loan originations.

Supply continues to be a challenge for the sector, particularly among the renter-by-necessity and affordable housing segments, driving pricing. In addition, multifamily produces 4% to 6% dividend yields—better than both sovereign bonds and investment-grade corporate bonds.

This article was prepared by Winston Rowe and Associates a national consulting and advisory firm. You can check them out online at https://www.winstonrowe.com

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Tags:Commercial Real Estate
Industry:Real Estate
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