Multifamily investments sales are down during the pandemic but they haven't stopped completely. Properties are still being listed for sale, while others are transacting in the off-market.
Either way buyers need to protect themselves from a risk that has heightened considerably during the pandemic: a significant level of delinquent rents at closing. In particular, buyers need to establish the responsibilities of the seller and purchaser in collecting such rent and the allocation between them when this rent is collected after the closing.
In normal times, this risk would be dealt with in a standard contractual provision in the sales document, Mark D. Yura, real estate partner at DLA Piper, tells GlobeSt.com.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
