SAN FRANCISCO—“We have gotten a lot of volume outside of theCity of San Francisco because that is where the opportunities liefrom the standpoint of multifamily sales volume… There is lots ofcapital chasing product.” That is according to AlexaMizrahi, loan originator of Lone OakFund.

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Mizrahi recently spoke with the RealShare Bay Area conference, athe RealShare Conference Series event, which is produced by ALM'sReal Estate Media Group, which also publishes Real EstateForum and GlobeSt.com.

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According to Mizrahi, there has also been a resurgence ofconstruction financing in the area, but she stressed that risingconstruction costs as well as rising interest rates were a concern.“But for development in coastal markets, San Francisco, Los Angelesand up and down the coast, we feel confident with the developmentthat is going on. We don't foresee an issue.”

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On the multifamily value-add side, according to JeffBurns, SVP of Walker & Dunlop, thereis a lot of product in the Bay Area that could benefit fromrenovation. “We have a lot of older multifamily stock,” heexplained to the nearly 200 attendees.

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Like Mizrahi, Burns noted that “The people that are active inthat space are starting to get a bit nervous now about whereinterest rates are going to be. I think people that have more thana 24-month horizon on a value-add play are trying to figure out howto hedge their risk. Now, the question is can the rent growthcontinue at the pace it's been and if interest rates rise, you canreally find yourself in a jam if you have taken out floating ratedebt.” Some borrowers, he said, are willing to take less leveragegoing in. “It is an interesting time if you look at thatspace.”

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For the urban core, Kris Lynds, SVP andregional director at Intervest, said that rentswill continue to grow. “It is a landlord market in the inner core.”Outside of that, he said, there is a lot of rental homes and shadowinventory that can help with rent.

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“It is a great time to own multifamily and great to be out inthe market borrowing against multifamily,” Burns added.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.