Regulations pose the biggestrisk for multifamily investment, according to some speakers thisweek on the New Investment Landscape: What Are the Opportunitiesand Challenges that Lay Ahead for Investors? panel at GlobeStApartments. The panel conversation included JasonHaye, VP and national sales director at VelocityMortgage Capital; Noah Hochman, co-chiefinvestment officer and head of capital markets atTruAmerica Multifamily; DavidHarrington, EVP and national director of multifamily atMatthews Real Estate Investment Service;Trevor Koskovich, president of investment sales atNorthMarq; Nat Kunes, SVP ofinvestment management at Appfolio andChris Nebenzahl, institutional research manager atYardi Matrix.

Rent control measures, which are sweeping the country as aresponse to the affordability crisis, is at the top of the list ofregulatory hurdles. "The biggest risk we have is regulatory risk,"Hochman said on the panel. "This is a real risk. I think thatpeople need to get involved."

California, where Hochman's company TruAmerica Multifamily isbased, recently passed a statewide rent control bill capping rentincreases at 5%. According to Hochman, this specific bill won'thave much of an impact on the investment market. He called it ananti-gouging measure meant to give some red meat to theconstituents. While this specific cap isn't a major concern, itcould be the beginning of rent control measures that are. "There iscertainly concern about Draconian rent control," he says, addingthat for now, the measure won't impact investment appetite. "Peoplestill buy rent control properties in L.A., and they still sell at4% cap rates."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.