Multifamily as a resilient asset class

[Casey Maeda]

Prior to covid 19, always hear multi family syndicators preaching how safe and resilient large multi family assets are. Boring but evergreen. Post covid 19 pandemic, I wonder how much this holds true...

[Paul Moore]

Multifamily performed very well in the last recession. Delinquencies were about 10% of single family for Freddie Mac, and even less when compared to 10% foreclosures at regional banks. 

Like @Evan Polaski said, self-storage and mobile home parks were not tracked as closely at the time. But check out this graphic with same property NOI growth. Mobile home parks had no dip at all in the last recession.

My friend @Scott Meyers claims that the top two asset classes in the last recession were self-storage and liquor sales. :-) I have not verified that. And check out this graphic showing REIT returns. MF and MHPs are tied, but self-storage is amazing.

My money is on self-storage and mobile home parks. However, I believe there will be opportunities to acquire some previously overpaid for MF assets from banks in about three years (note there is a 2-3 year lag from Wall Street to Main Street bottom). Which means that many of you have time to plan and assemble your team.