Marcel Garon

Nothing is more effective in bringing in new residents than a referral from an existing resident. Recommendations from friends and family are great—but they don't scale. With Rentgrata, renters can get direct access to existing residents, unlocking authentic reviews and insights that allow them to make well-informed decisions about where they live. Rentgrata encourages residents to share their experiences while getting prospective residents the answers they need before signing a lease. Even better, Rentgrata delivers metrics and insights to your internal teams, allowing you to market more effectively and make informed decisions on what matters most to renters. https://lnkd.in/gfrqs4xV #MultiFamily #PropTech #PropertyManagement #ResidentReferrals

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Good piece by BofA on housing dynamics observed via their internal data: - Northeast and West Coast (SF, LA) still seeing net population outflows, albeit their data doesn’t include immigration inflows - South still gaining in population, and BofA questions if even all the new housing supply is enough to keep up with population - Gen Z driving the migration movements (though in the NE cities, it’s older folks moving out) - Interestingly, the makeup of migration within higher growth MSA’s is still skewing toward suburban areas of less density - Young BofA customers are seeking rental housing in near/immediate term, but homeownership still No 1 desired option, with majority saying they want to buy within 5 years (positive case for BTR) #housing #affordability #multifamily #BTR #BFR #rentgrowth #migration #housingsupply #realestate #CRE #realestateinvesting #BofA

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According to a new Redfin report, the number of renter households in the U.S. grew 1.9% year-over-year in Q2 2024 to a record 45.2 million. That annual growth rate is more than 3x faster than the number of homeowner households, which grew 0.6% to 86.3 million. The number of renter households grew at the second fastest pace since 2021, while the number of homeowner households grew at the slowest pace since 2019. Relative growth in monthly housing costs was a factor in the year-over-year growth of renters vs. homeowners. While the average asking rent is currently 23% above pre-pandemic levels, mortgage rates are now 90% higher than they were before the pandemic. We at Park Row Equity Partners are filing this one in the "Another Case for Multifamily Investing" folder. Read the full article: https://lnkd.in/eiimd4ej

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Some positive notes (ie full payoffs), but distress was mounting through August per CREDiQ. Thanks for the insights Michael Haas “Perhaps the most striking metric is the January-through-August growth in full payoffs. From under $1 billion in January to $11 billion in August — full payoffs saw a massive 1,548.3 percent increase. …maturity extensions and loan modifications, the so-called “extend and pretend” category, continued to grow — rising 326.9 percent to $16.7 billion. …Foreclosures grew 272.6 percent reaching $19.2 billion in August. …REO notched a 22 percent increase.” #foreclosures #workouts #distress #specialassets #specialservicer

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🚀 Exciting Investment Opportunity: Join Us in Making a Difference with the Impact Lending Fund! 🚀 I’m thrilled to share an incredible opportunity that aligns perfectly with Impact Equity's mission to create sustainable impact while generating strong financial returns. 🌟 Introducing the Impact Lending Fund 🌟 This unique investment vehicle tackles America’s affordable housing crisis head-on. By investing in the Impact Lending Fund, you contribute to the development, improvement, and preservation of attainable rental housing, helping real estate sponsors scale their businesses. Why Invest in the Impact Lending Fund? 🔹 Consistent Returns: Targeting an 8-9% net return, distributed monthly. Since 2014, the target fund has consistently exceeded this target, delivering an impressive annualized average return of 10.1% (Net of all Impact Equity Fees). 🔹 Diversified and Secure: Focusing on senior secured mortgage investments, the fund ensures a lower risk profile with investments backed by real estate and personal guarantees. 🔹 Impact-Driven: Investing in this fund means you’re not just building wealth, but also providing housing to working families and addressing a critical social issue. 🔹 Experienced Management: Led by DLP Capital, with over 17 years of experience, the fund benefits from a proven track record in real estate and financial services, overseeing the acquisition of 30,000+ real estate assets and closing over $10 billion in transactions. 🔹 Strong Market Focus: Targeting high-demand regions in the Southeast, Sunbelt, and Texas, ensuring investments in areas with strong economic fundamentals and growth potential. Key Highlights: Fund AUM: $814,315,383 Equity Commitments: $452,201,844 Total Loans Under Management: $1,084,681,930 Average LTV: 54% Average LTC: 78% Join Us in Making a Difference Investing in the Impact Lending Fund means being part of a movement that aims to provide housing to 1 million people and transform 10 million lives. Together, we can make a tangible difference while achieving our financial goals. For more detailed information, click the link in the comments below. If you have any questions or would like to discuss this opportunity further, feel free to reach out. 👉 Let’s make an impact together! 🌍💼💪 #ImpactInvesting #RealEstate #SustainableInvesting #FinancialGrowth #AffordableHousing #ImpactEquity #InvestmentOpportunity

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"Being out of sync with your renters can lead to unnecessary investments in areas that renters may not prioritize as highly." 🔥💰 🧐 Do you believe you know your renters? In this episode recapping learnings from Zego's 2024 Resident Experience Management Report, Jennifer Stahlman, the publication's main writer, sits with host Yolanda M. to share her vital takeaways from the report's survey. Through survey data covering 1,000+ renters and 600+ multifamily pros, learn exactly what renters say they prioritize the most. 🎧✨ Listen to Ep. 415: https://lnkd.in/gQmKN_mP Subscribe for regular discussions around proptech, multifamily management, and the resident experience! #gozego #multifamily #propertymanagement #proptech

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📣 Attention CRE professionals! 📣 There are jewels in this portfolio. Good luck identifying the prized trophy New York City commercial real estate assets in Meat Packing, West Village, Union Square and other prime neighborhoods in Brooklyn. 🏦 Republic First Bank, a prominent player in the commercial real estate lending space, has made a surprising move. The bank, known for issuing billion-dollar loans, has decided to shutter its CRE lending division. 💡 This strategic shift raises questions about the future of CRE lending and the potential impact on the market. Will other banks follow suit, or will they seize the opportunity to fill the void? 🔍 Stay tuned as we delve deeper into this development and its implications for the CRE industry. 💼 In the meantime, let's connect and discuss how this news might affect our respective roles in the industry. Your insights and perspectives are always valued! #CRE #RealEstate #Banking #CommercialLending #IndustryNews

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📰 SVN's latest Economic Update is now available. In this update, learn about current trends in CRE, how AI is impacting the market, consumer trends, and more! https://lnkd.in/gKZ3yWmJ

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NYC just hacked housing economics - a game-changer for adaptive reuse plays.  The headline: secure 60% AMI affordable rents ($1,272 studios, $1,906 two-beds) in exchange for 20% bigger buildings via "Universal Affordability Preference" bonuses. Or opt for the MIH "deep affordability" route – 30% AMI units with market-rate cross-subsidization. Either way, it's an arbitrage gift for office-to-resi conversions. Bulk up density while locking in affordable set-asides that stabilize exit cap rates. No need to chase risky upzonings. Just precision-bonused infill that manufactures rental housing at a haircut to ground-up costs. The smart money loads up accordingly. Model out NPVs using both bonus options deal-by-deal to maximize returns. Underutilized commercial sites suddenly become viable multifamily opportunities thanks to these zoning incentives. Reactivate obsolete offices, parking lots, retail shells – all while checking those affordable housing boxes. It's the kind of thoughtful policy investors should be hounding other cities to replicate amid the viability crunch. A blueprint for incentivized conversions at scale. Pay very close attention as this proposal advances. The adaptive reuse arb window just cracked wide open. #multifamily #residentialconversions #affordablehousing #opportunisticdeals #reurbanization https://lnkd.in/gR3DKgBp

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“… at least half of the banking system’s Tier 1 capital loss-absorbing capacity has already been consumed by unrealized interest rate losses on its assets.” “My estimates suggest that CRE loan losses as small as 10% could render over 700 banks holding more than 6.5% of all banking system assets market-value insolvent.” “Larger commercial real estate loan losses would inflict greater carnage on the banking system.” Paul Kupiec economist and senior fellow American Enterprise Institute The Hill The link to his full paper here: 👉 https://lnkd.in/gbt6vGTs “Many banks in the system are ill-prepared to absorb additional losses from commercial real estate loan defaults.” “Today, with 10-year Treasury rates over 4.4 percent, banks’ market-to-market losses are probably closer to $1.4 trillion.” “According to year-end 2023 regulatory data, the banking system had $2.1 trillion in total regulatory capital to provide loss-supporting capacity for about $23.7 trillion in reported assets.” “Commercial real estate loan concentrations and banks’ diminished capital loss-absorbing capacity have primed the system for a sequel to the 1980s Savings and Loan Crisis.” “Bank regulators measure bank commercial real estate loan concentration as the ratio of total bank commercial real estate loans to the sum of a bank’s Tier 1 regulatory capital plus its provisions for loan losses.” “Regulatory guidance identifies a commercial real estate concentration ratio above 3 as potentially excessive and deserving of additional examiner scrutiny.” “Using market value Tier 1 capital estimates in place of regulatory Tier 1 capital, as of year-end 2023, the number of banks with a commercial real estate concentration ratio greater than 3 swells to 2,667.” “These 2,667 banks manage 27 percent of all banking system’s total assets and include 231 banks with 0 or negative market value adjusted Tier 1 capital.” “The FDIC deposit insurance fund balance of $121.8 billion is equivalent to only 0.51 percent of the banking system’s total assets.” “The FDIC cannot manage hundreds of simultaneous bank failures.” “The FDIC deposit insurance fund balance of $121.8 billion is equivalent to only 0.51 percent of the banking system’s total assets.” “Commercial real estate concentrations and unrecognized bank interest rate losses have created systemic risk in the banking system, and it is hiding in plain sight.” 🍀🍀🍀

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🔍 Insightful Accountability from Ann-Marie Bomba, CEO at Strategic Properties Recently on the Decoding Multifamily podcast, Ann-Marie Bomba shared her thoughts on accountability: -Suzanne Hopson: "On accountability.... How do you hold people accountable?, What does that look like?" -Ann-Marie Bomba: "Well, it's being clear in expectations. And then it's measuring. So, you give them clear direction, tell them what you need. Let them figure out how they handle that situation, right? Because there's not one way to make things happen. They've got to have some individuality in how they lead or how they perform. And then just really circling back and talking through it. It needs to be one of those situations where, I feel like if you're clear on your expectations and you have that follow-up, even if they don't necessarily meet your expectations, talk about what that situation looked like. What did we learn from it if we didn't exactly meet the target? and then what can we do better next time? And so use it as a learning opportunity, and then also create a safe place for people to make mistakes. If there's an error, I want my team to feel good and comfortable about raising their hand and saying, hey, that didn't work out the way I thought, so let's talk through it. Here's what I learned, and we can grow together.” At Property Gauge, we understand the power of clear expectations and measurable goals. Our Operations Intelligence dashboard ensures your entire team is working towards the same objectives, providing a transparent tool that holds everyone accountable. With Property Gauge, you can: - Set and track company standards - Highlight areas that exceed thresholds - Foster a culture of continuous improvement and learning Empower your team with the clarity and accountability they need to excel. Learn more at https://lnkd.in/ettVzReY Listen to Ann-Marie's full insights on the Decoding Multifamily podcast: 013 - Decoding Ann-Marie Bomba - Decoding Multifamily, Jun 4, 2024 https://lnkd.in/eJ-yMKqr #PropertyManagement #Accountability #OperationalExcellence #DataDrivenDecisions #PropertyGauge

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Asset-Based Lending in Retail: Understanding a tenant's funding and debt Drawing on years of experience evaluating portfolio companies backed by private equity, I've seen firsthand how financing and debt can make or break a business. In this series, I’ll be exploring various financial products that every retail landlord should understand when reviewing a tenant’s financial statements or quarterly results. The way a retailer uses debt isn’t just a line item—it’s a signal of their strategy and stability, and it’s crucial to know what you’re really looking at. When evaluating retail tenants, tenant due diligence should always include a deep understanding of how leveraged a tenant is—essentially, how much debt they are carrying relative to their operating earnings. This becomes especially critical when a retailer turns to asset-based loans (ABLs). While they can be used effectively, strained finances or high-growth strategies can effectively tie-their hands in future negotiations. For retailers in deep distress, the incentives from ABLs, typically tied to the value of inventory, can appear as a lifeline. These loans might be the only option for those trying to stabilize their business or drive rapid growth. However, while ABLs can provide much-needed liquidity, they can also push retailers into a cycle of accumulating debt that becomes increasingly difficult to manage, as  Revlon did. As a result, the business might start collapsing, dragging suppliers and other stakeholders down with it. It’s a financial strategy that works—until it doesn’t. Unlike traditional first-lien debt, which is usually structured as a standard loan at SOFR plus a margin, ABLs incentivize retailers to purchase inventory continuously. To borrow more, the retailer needs to have more inventory to pledge as collateral. This dynamic has been observed repeatedly: retailers keep buying inventory, even when it’s not in their best interest to do so. Additionally, the inventory securing these loans is often valued at liquidation prices, which can fluctuate based on retail conditions. This means the retailer is trapped—they can’t discount inventory to drive sales without undermining their collateral base, which would cut off their access to working capital, this is the situation Big Lots found themselves in. In essence, the very mechanism meant to provide financial stability can, under the wrong circumstances, lead to a company’s downfall. My next article will point out possible red flags or questions to ask. #tenantduediligence #inventoryABL

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What's really important in NYC's City of Yes for Housing Opportunity? What should developers pay attention to? . . . . . A few weeks ago, I wrote a post on the primary areas that investors, developers, and related parties should key into and pay attention to in the City of Yes legislation. I explained where developers/investors would capture value, what to ignore, and some areas like shared housing zoning amendments that could prove very interesting depending on how the city agencies implement the rules. I think focusing on the critical elements of the zoning amendment proposal is even more key today, now that the New York City Council has proposed its 'City for All' proposal and, in doing so, introduced even more facts, ideas, and noise to consider. See below. Q&A Style. Shorter read than usual. https://lnkd.in/ev_VV_26

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A conversation between GlobeSt.com and CoStar Group show that the multifamily housing market is showing promising signs of recovery, with rising demand leading to stabilizing vacancy rates and increased investment activity. Absorption rates climbed significantly in Q2, while rent growth is expected to pick up in the second half of the year, indicating a positive outlook for the sector as it moves towards a phase of expansion. More positive signs for the market! Manor Park Ventures

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Fantastic article on CRE, bank balance sheets and where we are today. Lots of overlap in here with what Rebel Cole has been sharing for a while now. “Years-old guidance from regulators flags fast-growing banks where CRE loans make up more than 300% of risk-based capital as a potential trouble spot. Hundreds of banks are beyond that mark, some significantly so. At the same time, investors are punishing or staying away from banks with large CRE concentrations, even if their portfolios remain healthy. Banks above the 300% cutoff are now generally on a diet, even if their large exposures were seemingly not a problem for either their regulators or investors before March 2023. These banks are cutting back on any new CRE lending, and they are reclassifying some owner-occupied loans away from the CRE bucket.” #banking #CRE #privatecredit #distress #interestrates

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Explore the opportunities within multifamily housing investments with Vistia Capital. Our seasoned team guides you through the process, identifying properties that align with your short- and long-term investing goals. We leverage extensive industry insights to help you make informed decisions, whether you're looking to expand your portfolio or enter the multifamily sector for the first time. Interested in exploring multifamily investment opportunities? Reach out to Vistia Capital today to discover how we can help you navigate this dynamic market. https://bit.ly/47WI0wC #VistiaCapital #multifamilyhome #multifamilyhomeinvestment #realestateinvestment #propertyinvesting #investmenthelp #propertyinvestor #realestateinvesting #investmentproperty #investing

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Naturally Occurring Affordable Housing (NOAH) is a term for multifamily rental properties that offer below-market rents without public subsidy to low-income households. These properties are typically large, old, outdated and amenity-poor. Owners often defer upkeep to sustain returns while keeping rents low.  In 2016, the importance of preserving NOAH gained national attention when a large property in Richfield, Minnesota was sold. This property, home to multiple generations of families, was promptly upscaled by its new owner. Its 2,230 low-income residents were given 30 days to manage higher rents and new screening criteria. Nearly all residents were displaced from their homes.   The following year, when it was rumored that another Richfield complex was up for sale, City Council members called Aeon. Overnight, Aeon ensured that the property, Seasons Park, would remain affordable. Like the previous Richfield property, Seasons Park housed mostly working class families, including approximately 200 preschool-age and 250 school-age children. Many of these residents had previously struggled to find a safe and affordable place to live – making the prospective sale of Seasons Park even more concerning.   Seven years later, things are improving. It's taken time, but Aeon's commitment to preserving NOAH housing has allowed residents to remain in their homes. Resident Floribel explains, “Before, I lived in a few places, none of which I could afford. They all charged too much, and I had to keep moving. Here, it's more calm. I am more stable here. It is very important and beneficial for the residents to preserve and maintain the property – to maintain the community. I want to stay here.”  Floribel lives in one of Seasons Park’s 422 apartments – a place she intends to stay. When asked about her dreams for the future, she focuses on her son: “I want him to continue in school and eventually go to college. This is a good area, with good schools. He can do it.”  Aeon is proud to support thousands of residents like Floribel, whose NOAH homes provide a stable and affordable place from which to grow.

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