Multifamily Deals Get Riskier

Max Sharkansky: “We are starting to see a lot of investors who are new investors that don’t have the experience of downturns and might not be pricing certain risks into deals.”

LOS ANGELES—The multifamily market is becoming increasingly tighter, with more and more new investors showing up to the party and plenty of capital chasing deals. So, it is no surprise—even if it is disappointing—to hear that some investors are taking on significant risks that are a little too reminiscent of the now proverbial pre-recession mania. Max Sharkansky, managing partner at Trion Properties, says that the multifamily market is becoming “difficult” and has seen first hand some of the questionable risks that investors are taking in the market. In this exclusive interview, Sharkansky delves into the new competitive norm in the multifamily market, how Trion Properties’ strategy is evolving and what he is expecting in 2016.

GlobeSt.com: You have said that multifamily is becoming an increasingly difficult asset class. Tell me what you mean by this.