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| Grace Huebscher |
BETHESDA, MD, FEB. 26, 2014 – Multihousing commercial real estate
professionals are more than twice as likely to be net buyers than net sellers
in 2014, according to a recent industry survey conducted by Beech Street
Capital, a Capital One company.
Forty-six percent of those
surveyed plan to grow their portfolios this year, while only 18 percent expect
to reduce their holdings. In addition, the majority (52 percent) of those
polled expect that acquisition financing will be most important to their
business in 2014.
Rising interest rates were
cited by 34 percent of respondents as their greatest concern in the coming
year, compared to overbuilding of apartment units (24 percent), the pace of cap
rate expansion (11 percent), access to financing (10 percent), and global
uncertainty (10 percent).
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| Rick Lyon |
“Our survey found that
multihousing acquisitions are clearly on the rise, driving an increase in
demand for acquisition financing,” said Rick Lyon, Head of Commercial Real Estate Banking, Capital One Bank, which
acquired Beech Street Capital last November.
“Our team is
well-positioned to provide access to tailored acquisition financing solutions
that suit the needs of our commercial real estate clients looking to expand in
the year ahead.”
Over half (51 percent) of
respondents expect urban properties to increase in value, with only half as
many seeing increases for suburban properties (24 percent).
In addition, the survey
found that 42 percent of industry professionals expect multifamily renovations
to gain the most momentum in 2014, compared to other industry trends such as
developers moving into emerging markets (32 percent), and increases in luxury
developments (16 percent) and affordable housing developments (10 percent).
“Many owners are choosing
to renovate and modernize their properties to remain competitive and maintain
customer satisfaction,” said Grace Huebscher, Beech Street’s president. “At the same time, savvy developers are
looking to new markets for opportunities, contributing to a positive outlook
for the industry.”
For a complete copy of the company’s news release, please
contact:
Courtney Lewis at
240-507-1948 or
Jenifer Bernardi at
240-507-1946.
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