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Apt Credit Unavailable (by W [CA]) Jun 8, 2023 9:12 PM
       Apt Credit Unavailable (by MikeA [TX]) Jun 9, 2023 4:48 PM

Apt Credit Unavailable (by W [CA]) Posted on: Jun 8, 2023 9:12 PM

CEO: "I Talked To 48 Lenders About Debt For A New Apartment Project. Zero Came Back With A Bid"

Zerohedge dot com

Less than two months ago, we conveyed an anecdote from One River Asset Management CIO Eric Peters, which showed just how challenging it has become to obtain debt funding, to wit:

“The lender for our latest 30-story project in a tier-one city backed out, so we scrambled, and spoke with well over 100 banks. Not one will provide financing.” His firm is a leader in their market niche. A strong track record.

While the pressure has been most acute on the office sector, the pain is extending to apartment landlords, who have benefited from a surge in rent growth during the pandemic. Now, many owners are seeing high borrowing costs and a surge in expenses erase their profits. Meanwhile, prices for apartment buildings have dropped 21% over the past year, according to Green Street. And ironically, as developers remain credit-strapped, there is just not enough rental supply which means that rents across the country keep on rising in a time where nobody can afford a 7% mortgage . . .


Apt Credit Unavailable (by MikeA [TX]) Posted on: Jun 9, 2023 4:48 PM

It could be worse, I've seen well over 14% interest rates in 1981. That will really shut things down. --209.205.xxx.xx

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Apt Credit Unavailable
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