Multihousing Real Estate Business Looks to Expand in 2014, Beech Street Capital Survey Reveals

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).

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.