The Bozzuto Group has a multifamily project coming up that could be ready to break ground in the next 60 or 90 days, according to president and CEO Toby Bozzuto. As it works to secure financing, "we have seen the debt market be very, very reticent to do anything," Bozzuto told listeners in a recent CBRE webinar. "Candidly, I understand we're all trying to build a castle on quicksand. I mean, we're trying to figure out where the bottom is and I'm optimistic. I do think things are getting better and will get better every single day, but there's just some uncertainty in the market right now."
Unfortunately that uncertainty is also playing out in the affordable housing space, a market that has huge demand as well as strong interest on the part of developers.
A two by four doesn't know if it's in a luxury high rise or an affordable dwelling building, Bozzuto said. "So, as the construction market continues to rise, it is very, very difficult for any developer to provide quote unquote affordable housing unless it's subsidized in one, one form or another. So, I see the future of this just even more complicated and murky because prices have just escalated now going straight since 2009 till today."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
