January 21, 2023 Weekly Investor Update

Life Bridge Capital Weekly Investor Update

January 21, 2023

The Latest in Commercial Real Estate (CRE), Economy & Markets




Mortgage Rate (30-Year Fixed): 6.15% (as of 1/19)


Existing Home Sales: -1.5% (December 2022)

New Residential Sales: +5.8% (November 2022)

Median Sales Price for New Houses Sold: $471,200 (November 2022)

Construction Spending: +8.5% YoY (November 2022)

New Residential Housing Starts: 1.382 million (December 2022)

New Residential Housing Completion: 1.411 million (December 2022)


Homeownership Rate: +66.0% (3Q22)

Rental Vacancy Rate: +6.0% (3Q22)


Sources: NAR, BLS, Federal Reserve Bank, MBA

Note: Rates listed are estimates and may not reflect actual rates depending on term, sponsor location, and other factors involved.




10. Strong multifamily demand will continue in 2023

Despite the rate hikes that have reached 4.33% in less than a year, the multifamily sector will still have high demand in 2023, according to the forecast of NAI Global Senior Managing Director, Arthur Milston. “Multifamily fundamentals have held up pretty well so far. It’s a space that will remain at the forefront for many institutional investors. I’m cautiously optimistic about the category in 2023. Investors just have to push a little harder to find deals and sellers that are more realistic regarding value,” he explained. Milston particularly cites the $272.1 billion worth of apartment transactions in 2022 that is higher by 3% YoY.


9. Northmarq offers $12.5M acquisition loan for Rochester, MN multifamily property

Northmarq has provided a Freddie Mac loan worth $12.5 million for the acquisition of the 147-multifamily unit Timberland Heights in Rochester, MN. The property, which features a pool, fitness center, clubhouse, and kids’ playground, is located at 1515 41st St. NW and was built in 1975. Northmarq originated the 10-year loan that has four years of interest-only payments and a 30-year amortization schedule. 


8. NY developer to begin San Antonio multifamily project in July

New York-based multifamily developer Sovereign Properties will begin work on Westover Hills project this July. The property, which is marketed towards upper-middle class families, has six buildings with 312 units located at the corner of Nationwide Drive and Texas State Highway 151. No purchase price for the land was published although the updated appraisal for tax purposes is valued at $4.1 million.


7. Greystone approves $94.5M financing for Chicago multifamily

Real estate financing company Greystone has approved the $94.5 million acquisition loan for the 586-unit multifamily property Stonebridge Luxury Apartments located in Chicago. The community is composed of six buildings with one- and two-bedroom units. The non-recourse, fixed-rate Fannie Mae loan has a 10-year term and amortization. The financing was originated in Greystone’s New York office, on behalf of Bayshore Properties.


6. Pacific Union Investors buys multifamily portfolio in Seattle and Portland 

Pacific Union Investors has purchased a nine-property, garden-style apartment portfolio totaling 2,195 units in the Seattle and Portland metropolitan areas. Although the terms of the transaction were not announced, the company revealed that its portfolio now totals 23 properties with more than 4,000 units. The Washington acquisition includes The Gates of Redmond and Olde Redmond Place in Redmond, Madison Sammamish in Sammamish and Crystal Creek in Vancouver. On the other hand, the Oregon communities include Golf Creek and Meridian at Murrayhill in Beaverton, Orenco Gardens and The Jones in Hillsboro and Forest Rim in Tualatin.


5. Boca Raton, FL, is the best city for finding new apartments

Data from RentCafe reveals that among the top 50 metros for finding new apartments in 2023, Boca Raton, FL emerged as the top city thanks to its 91.9% occupancy rate, 96.2% share in top locations, and 50.2% increase in new apartments. RentCafe added that “all new rentals are in luxury-like settings close to highly rated public schools, countless attractions and amenities, and miles and miles of gorgeous sandy beaches.” All other metros that made the top 5 are cities in Texas: Midland, Humble, Frisco and McKinney.


4. Lincoln Property receives approval for $90M Chicago multifamily development 

Lincoln Property Co. has announced that it has already received approval for the complete building permit for its $90 million high-rise multifamily development at 4600 N. Marine Drive in Chicago. It will have 300 units and a host of community amenities such as a clubroom and remote work areas. The project broke ground in 2022 and is expected to come online in the fall of 2024.


3. Springfield, MA is top multifamily vacancy rate performer in 2022

The National Association of Realtors (NAR) released its ranking of metros with the lowest vacancy rates in 2022 for multifamily properties, revealing that Springfield, MA on top of the list with 2.3% vacancy. It was followed by New York, NY (2.4%), Madison, WI (2.5%), Reading, PA (2.5%) and Manchester, NH (2.7%). NAR added that due to higher interest rates, many renters will be staying in their apartment buildings for a longer period because of affordability issues.


2. NYC is top metro for multifamily investing in 2023

According to Crexi data, asking prices for NYC multifamily properties have gone up 13% YoY with average occupancy levels climbing to approach 79.1% on average, which puts the Big Apple on top of the rankings for best cities for multifamily investors. It was followed by Raleigh-Durham where median rents in the metro are more than $1,500 monthly and almost half of all households are renter-occupied. Other top cities that made the list include Nashville, Charlotte, and West Palm Beach.


1. CBRE: multifamily sector will continue to benefit this 2023

Matthew Vance, the Americas head of multifamily research for CBRE, opined that the multifamily sector will still be the “shining star of commercial real estate this year” even though new apartment leasing plateaued in 2022. This may have pushed up vacancy rates a bit but the demand for such property will continue. Vance also noted the record number of multifamily units under construction in the country today. In an interview with MPA, he added, “Multi-family is playing this really important role in the overall housing supply for this country. The vacancy rate just crossed over 4% in late 2022, and while we expect softer demand and health supply to continue pushing that vacancy toward its long run trend of about 5% this year, it’s that below-trend vacancy between now and then we expect will support health rent growth – not anything like what we’ve seen the last couple of years, but above the 2.5% to 3% average rent growth we experienced in the years just prior to the pandemic.”

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