Apartment Loan Rate Rising Along With 10yr Treasury

Apartment Investment Loan vs 10 year Treasury rate

The apartment investment loan rate we track has continued to rise along with the 10yr Treasury (T10), going from 4.76% last month to 4.885% as of yesterday (See below for details on the loans and note that lower rates are available for loans over $5mm). The T10 has gone from 2.46% to 2.65% over the same period with the Continue reading Apartment Loan Rate Rising Along With 10yr Treasury

Apartment Loan Rate Holds Above 4.5%

Apartment Investment Loan vs 10 year Treasury

The apartment building investment loan rate we track remains above 4.5% where it has been since the end of September, coming in at 4.64% as of yesterday. The spread between it and the benchmark 10 year Treasury (T10) has widened, but only by 4 basis points (bp) since last month’s report.

Speaking of the T10, a funny thing happened on the way to the forum this month; the curvature of Continue reading Apartment Loan Rate Holds Above 4.5%

Rehabbing Historic Apartments and Mixed Use Commercial Buildings

Mixed Use Building Apartments over Retail, built 1904
The Daylight Building, built in 1904. Apartments over retail/office. Photo Credit: Western Washington University http://faculty.wwu.edu/talbot/BhamPhotoIndex.html

Developer Bob Hall got his start buying an old building in a deteriorating downtown to house his import business. He didn’t know about due diligence, deferred maintenance or building codes and after having to refinance then sell his house to fund the required repairs swore he’d never buy another building… until he looked at his tax return. He was making more money renting out the extra space than the import business was pulling in… and he was hooked.

At the time Continue reading Rehabbing Historic Apartments and Mixed Use Commercial Buildings

It’s All About the Dogs for Apartment Building Investment

[Insert latest cute pet pic from your Facebook friends]
It Is All About the Dogs for apartment building investment according to industry insiders speaking at a recent Bisnow conference: Woodbranch Management President Philip Schneidau says Market Square’s dog run was the best thing about the project. (The second-best part is the building’s liquor license. “What happens is you get home from work, walk your dog, grab a bottle of wine and meet your neighbors,” Schneidau said. “It’s a great life. That’s the magic.”)

Here’s my Exec sum of their salient points:

The Demographics:

  • Households with at least one pet jumped 35% during last decade to 74.1 million
  • Dogs are the favorite pet, with 43.3 million
  • Dog ownership surging among singles and renters.

The Competitive Situation:

  • Being pet-friendly has shifted from competitive advantage to

Continue reading It’s All About the Dogs for Apartment Building Investment

Falling Spread Prevents Apartment Investment Loan From Jumping

Falling Spread Saves Apartment Investment Loan Rate

First I want to take a moment to remember all those who lost or gave their lives as well as their families and friends that terrible day sixteen years ago. I have four friends who but for their own unique twists of fate would have been in the twin towers on 9/11 and their good fortune is a stark reminder of so many who weren’t that lucky. Also I keep in my thoughts all those who are suffering because of wild fires, hurricanes, floods and earthquakes around the world right now. – Giovanni

The 10 year apartment investment loan rate we track fell 10 basis points (bp) from last month even though the benchmark 10yr Treasury rate jumped 8bp today to 2.14%. The spread between the two shrank to 218bp, the Continue reading Falling Spread Prevents Apartment Investment Loan From Jumping

Is Builder Sentiment a Better Predictor of the Apartment Investment Cycle?

Builders Predict the Apartment Cycle

Are apartment builders better predictors of the Apartment Building Investment Cycle? Based on the latest cycle at least (a sample of one, admittedly) it appears that they are.

On the chart above the blue line represents the NAHB’s Multifamily Production Index (MPI) which began falling in the 3rd quarter of 2005 and fell for four straight Continue reading Is Builder Sentiment a Better Predictor of the Apartment Investment Cycle?