Multifamily Mortgage Rates – September 2024 Update

Staying on top of multifamily mortgage rates is critical for real estate investors seeking to optimize their investments. As of September 2024, notable adjustments in rates present both challenges and opportunities in the multifamily market. Understanding these changes can help property owners make informed decisions, whether they are looking to refinance, acquire new properties, or reassess their current financial strategies.

Key Rate Changes for September 2024

• Bank Rates for 5-year terms have decreased by 12 basis points, now at 6.80%. This presents an opportunity for investors to secure favorable terms for refinancing or new acquisitions.
• Agency Rates have fallen by 7 basis points, now at 5.12%. These rates are typically advantageous for larger properties, providing stability and competitive terms for long-term investments.
• Agency SBL Rates (Small Balance Loans) have increased by 20 basis points, now at 5.89%. These loans target smaller properties and offer an efficient solution for investors dealing with properties under specific loan amounts.
• CMBS Rates dropped by 40 basis points, now at 6.62%. This decrease makes CMBS loans attractive for larger, more complex multifamily deals that require flexible repayment structures.

These shifts in multifamily mortgage rates are important to monitor, as they influence the cost of borrowing and ultimately the profitability of real estate investments.

Understanding Your Loan Options

• Agency loans offer stability with long-term, fixed rates. These are ideal for institutional investors or those looking to hold onto larger properties for extended periods.
• Agency SBL loans target smaller multifamily properties, typically offering competitive rates for properties under certain loan balances. They are designed for more modest-sized assets, but with the same benefits of Agency loans.
• CMBS loans (Commercial Mortgage-Backed Securities) are an excellent choice for investors looking for more flexibility in repayment terms, especially when dealing with larger, more complex deals. These loans are structured through securities and can offer unique advantages for certain financial strategies.

How This Affects Investors

The current changes in multifamily mortgage rates provide an excellent opportunity for investors to review their financing strategies. Whether you’re considering refinancing an existing loan or purchasing a new multifamily property, now might be the time to lock in favorable terms. Given the recent adjustments, working with a knowledgeable capital partner can ensure you make the most of these market conditions.

Next Steps: Schedule a Call

At eXp Commercial, we are committed to helping our clients navigate these market shifts with expert advice and tailored solutions. In partnership with CommLoan, we provide a wide range of financing options suited for multifamily investments. Whether you’re looking to refinance, expand your portfolio, or simply assess your options, we’re here to assist you every step of the way.

Contact us today or schedule a call to discuss your financing needs. Let us help you secure the best terms and maximize the profitability of your multifamily investments.

https://www.creconsult.net/market-trends/multifamily-mortgage-rates-september-2024/

Hobard Auction

🚨 Auction Alert 🚨

I’m excited to announce that a prime 17.25-acre residential development property at 150 Harbor Club Dr, Hobart, IN, is going to auction! 🏘️ This is a rare opportunity to acquire land within The Brickyard of Hidden Lake Subdivision, featuring 48 platted lots, including coveted lakefront property. 🌊

Key Highlights:
* Mixed Neighborhood Residential Zoning: Perfect for low- to medium-density housing.
* Prime Location: Just 39 miles southeast of Chicago.
* Thriving Market: Hobart is experiencing strong demand and growth, with a median home price of $237,300.

📅 Auction Bidding Starts: September 23 at 11:00 AM.

Don’t miss out on this incredible development opportunity! Click the link to learn more and register to bid.
https://www.crexi.com/properties/1646245/indiana-the-brickyard-of-hidden-lake

Contact Information:
Randolph Taylor, CCIM
Commercial Real Estate Broker
eXp Commercial-Chicago
📞 630-474-6441
📧 rtaylor@creconsult.net

#realestate #auction #developmentopportunity #HobartIN #investment #commercialrealestate #eXpCommercial

Chicago Multifamily Market Q2 2024: Key Insights for Property Owners

The Chicago multifamily market in Q2 2024 remains stable, offering property owners opportunities for strong rental performance, low vacancy rates, and sustained investor demand. Whether you’re considering refinancing, holding your property, or exploring a potential sale, these insights will help you understand the current market conditions.

Key Metrics for Chicago Multifamily Properties

1. Consistent Rent Growth

Rents in the Chicago metro market have continued to grow steadily. In Q2 2024, average asking rents rose to $1,780 per unit, marking a 3.6% increase year-over-year. This sustained growth reflects strong tenant demand across the metro area. Projections suggest rents will continue to rise, reaching $1,796 per unit by the end of 2024, offering further potential for income optimization.

2. Low Vacancy Rates Support Cash Flow Stability

Vacancy rates across the Chicago metro market have improved to 4.7%, ensuring steady occupancy and cash flow for property owners. The lower vacancy rate in Class B/C properties (at 2.9%) indicates particularly high demand for mid-tier assets, while Class A properties experience slightly higher vacancies at 8.6%. This difference highlights opportunities to maximize returns in properties catering to the broader rental market.

3. Investment Activity and Sales Trends

The Chicago multifamily market continues to attract significant investor interest. In Q2 2024, total transaction volume reached $442.79 million, with notable deals in key metro locations. The average cap rate for multifamily properties is 5.9%, indicating competitive bidding for quality assets. Major transactions include 1326 S Michigan Ave ($144 million) and 850 N Lake Shore Dr ($79.75 million), reflecting strong market confidence.

4. Limited New Construction Prevents Oversupply

New construction in the Chicago multifamily market remains restrained, with only 0.3% annual inventory growth. This minimal growth helps maintain a healthy balance between supply and demand, ensuring that existing properties face less competition from new developments. This trend supports rent increases and maintains occupancy stability, providing property owners with a favorable market environment.

Market Outlook for the Rest of 2024

Looking ahead, rental demand in the Chicago metro market is expected to remain strong, with projected rent growth pushing average asking rents to $1,796 by year-end. Vacancy rates are likely to stay stable at around 5%, creating a favorable outlook for property owners. Investors remain active, providing opportunities to assess your asset's value for refinancing or potential sale.

For more in-depth insights, download Moody’s CRE report here. A partner of eXp Commercial, Moody's CRE, has provided this report.

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How We Can Help

At eXp Commercial, we provide tailored guidance to multifamily property owners in the Chicago metro area. Whether you’re considering buying, holding, refinancing, or selling, we offer the insights you need to make the most of your property. Schedule a discovery call or contact us to discuss your property’s next steps.

https://www.creconsult.net/market-trends/chicago-multifamily-market-q2-2024/

Sequence 8

MARKET UPDATES
View our Blog To Keep Up To Date On
The Multifamily Market
Randolph Taylor
Multifamily Investment Sales Broker - Chicago
eXp Commercial | National Multifamily Division
(630) 474-6441 | rtaylor@creconsult.net
https://www.creconsult.net/blog/

Hobard Auction

🚨 Auction Alert 🚨

I’m excited to announce that a prime 17.25-acre residential development property at 150 Harbor Club Dr, Hobart, IN, is going to auction! 🏘️ This is a rare opportunity to acquire land within The Brickyard of Hidden Lake Subdivision, featuring 48 platted lots, including coveted lakefront property. 🌊

Key Highlights:
* Mixed Neighborhood Residential Zoning: Perfect for low- to medium-density housing.
* Prime Location: Just 39 miles southeast of Chicago.
* Thriving Market: Hobart is experiencing strong demand and growth, with a median home price of $237,300.

📅 Auction Bidding Starts: September 23 at 11:00 AM.

Don’t miss out on this incredible development opportunity! Click the link to learn more and register to bid.
https://www.crexi.com/properties/1646245/indiana-the-brickyard-of-hidden-lake

Contact Information:
Randolph Taylor, CCIM
Commercial Real Estate Broker
eXp Commercial-Chicago
📞 630-474-6441
📧 rtaylor@creconsult.net

#realestate #auction #developmentopportunity #HobartIN #investment #commercialrealestate #eXpCommercial

Essential Insights for Chicago Multifamily Investors: Q2 2024 CRE Webinar

The Q2 2024 CRE webinar hosted by Moody’s and eXp Commercial is a key event for Chicago multifamily property owners. This webinar will dive into crucial insights about the current commercial real estate landscape, emphasizing how economic shifts impact the multifamily sector. Attending this event will equip you with the knowledge needed to navigate these changes effectively.

Why Attend the Q2 2024 CRE Webinar

This CRE webinar will feature industry experts from Moody’s and eXp Commercial, discussing the latest trends affecting the real estate market. Whether you're dealing with shifting vacancy rates, assessing rent growth opportunities, or understanding broader economic impacts, this session provides the essential information you need to make informed decisions about your investments.

Key Takeaways from the Webinar

• Vacancy Rates and Rent Trends: Learn how current market shifts affect your Chicago multifamily investments.
• Economic Impacts: Understand how changes in interest rates and other economic factors influence your properties.
• Strategic Opportunities: Discover opportunities for acquisition, disposition, or refinancing to optimize your portfolio.

This session isn’t just about data; it’s about delivering insights that can directly impact your investment strategy.

Align Your Strategy with Market Trends

Moody’s, a trusted research provider, and eXp Commercial bring their expertise to this CRE webinar. The information shared will be vital for aligning your investment strategy with the latest market intelligence. You’ll gain actionable insights to better manage your multifamily investments in Chicago.

Curious about how these insights apply to your properties? After the webinar, schedule a call with us to discuss your investment goals and how we can assist with your acquisition, disposition, and financing strategies.

Reserve Your Spot Today

Don’t miss this opportunity to gain insights that can influence your investment strategy. Register now to secure your spot in the Q2 2024 CRE webinar and stay ahead in the competitive Chicago market.

https://www.creconsult.net/events/q2-2024-cre-webinar-chicago-multifamily/

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CHICAGO MULTIFAMILY BROKERAGE
No Matter Where You Are In The Investment Cycle
with Your Multifamily Property
We Can Help You!
Buy | Sell | Hold | Finance
Randolph Taylor
Multifamily Investment Sales Broker - Chicago
eXp Commercial | National Multifamily Division
(630) 474-6441 | rtaylor@creconsult.net
https://www.creconsult.net/