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Where Multifamily Capital Is Heading This Year

Secondary markets, workforce housing and ground-up construction will be the mantras of multifamily capital this year.

Shlomi Ronen Shlomi Ronen is the managing principal and founder of Dekel Capital.

Secondary markets, workforce housing and ground-up construction will be the mantras of multifamily capital this year. The multifamily market is getting more heated, with cap rates hitting record lows and competition growing fierce. As investors look for yield, they are starting to head into new multifamily niches, looking for deals in secondary markets and workforce housing-quality assets. Construction lending may also be rebounding this year after taking a pause in 2018.

“As people try to chase yields, they are focusing on different aspects of multifamily,” Shlomi Ronen, managing director of Dekel Capital, tells GlobeSt.com. “Some investors are going into secondary markets and buying B and C product and calling it workforce housing. We are seeing more people focus on that than better-located or newer assets. People are trying to stay within the space, and they are trying find different avenues to capitalize their deals.”

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Kelsi Maree Borland

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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