Berkadia Is Bullish on Multifamily 👍

[Justin Goodin]

Have you seen this article recently published? Berkadia is bullish on multifamily. 
Berkadia Report

Here are a couple key points:

The multifamily market has demonstrated impressive resilience since the onset of the pandemic; and although COVID-19 continues to drive economic uncertainty across our nation, we have begun to recognize signs of a rebound in the apartment sector.
Across our investment sales platform, there’s been a sharp increase in the number of active listings nationwide since the start of July. We believe the surge in calls from our clients strongly reflects a growing interest in new multifamily acquisitions.

Although the full market data is not available for the third and fourth quarters, Fannie and Freddie have originated $56 billion and $58 billion respectively through October 2020, continuing this trend of providing liquidity and stability to the market.
Uncertainty remains regarding the position that a Biden Administration will take on GSE reform, but Berkadia’s perspective is that privatization is unlikely in the coming year. No change is likely a good thing from a liquidity and stability standpoint.

Some investors may seek to rebalance their portfolios by transferring capital out of fixed-income assets and into institutional- grade commercial real estate assets. We would not be surprised to see a rebalancing of investors’ real estate portfolios to be weighted more heavily towards multifamily, which can act as a superior long-term hedge opportunity compared to other commercial real estate assets. 

2021 is going to be another competitive year for multifamily. What are you and your company planning to accomplish in 2021? What are some things you will do differently moving forward?