GlobeSt.com: Would you call the uptick in multifamily transactions a bona fide rebound?

Stiss: I’m not so sure that it’s as much of a rebound as it is a shining star. As a whole, I don’t believe multifamily suffered as much as other property types. Right now, multifamily is a very hot asset amongst investors looking for a very safe bet. Investors are climbing over each other to buy these properties. They’re trading anywhere between in a five and six cap rate. In fact, I was just with a client yesterday who wants to buy more but there’s just isn’t enough product out there at the right price.

GlobeSt.com: So you are seeing heavy competition for the deals…

Stiss: Yes, and lenders like multifamily, too, for the same reasons. Most lenders can’t do better than Freddie Mac financing for multifamily projects that are operating well, with good loan value and net cash flow.

GlobeSt.com: Class A is the sweet spot, but I’ve heard that even Class B properties are seeing some attention. Are you seeing that as well?

Stiss: Yes, as long as the occupancy is good or it’s in a desirable location and there’s an opportunity for vacancy rates to decrease or an opportunity for rents to increase. If you’re willing to hold on to an asset for several years then, of course, any kind of multifamily at the right price will do well.

GlobeSt.com: Do you expect to see new multifamily development in South Florida?

Stiss: It depends upon the demand and the location and the price that one obtains for the property and the rents that can be derived. One of my clients said it doesn’t make sense in Miami right now. The numbers don’t work. The numbers have to work to get a lender to underwrite a loan. These days, everybody is looking at it with a very, critical eye, especially our construction loans.

GlobeSt.com: Is now the time to buy or sell multifamily?

Stiss: It depends upon what investor’s return expectation is. And if that investor, no matter who it is or how long it’s owned the property, has achieved the kind of investment return that it expects then now is a great time to sell. There is no hard and fast rule.

GlobeSt.com: What do you see as the biggest challenge to a true multifamily recovery?

Stiss: I don’t think there is a recovery. I think it is a renaissance in the sense that everybody now appreciates what a multifamily has to offer. It’s a constant. I don’t think that there is anything in the future that needs to happen in order for multifamily to continue to thrive.