In 2022 IPO Brokered $600M in Sales Volume
January 2023 – Bloomfield Hills, MI
The last decade has been rightfully referred to by industry experts as the “Golden Age” for multifamily investments due to the orchestra of high investor demand, low interest rates, and strong operating fundamentals. Then along came a global pandemic, but the apartment business proved its mettle, demonstrating an asset quality that investors worldwide have taken full note of. The risk- adjusted returns of multifamily have historically supported investment, but because of the response to COVID-19 and the inflationary environment it created, apartments have been elevated to perhaps the most attractive commercial investment type. That is why 2021 sales set records across all markets. Now, one of the instruments in the orchestra is a bit out of tune. To tame inflation running at a 40-year high, the Federal Reserve has enacted an aggressive monetary policy stance by raising the federal funds rate by 350 basis points over a 12-month period. To put this into perspective, the cost of debt has essentially increased by upwards of 50% Year-over-Year. This is the topic as 2022 draws to a close and looks toward 2023 and beyond.