Throughout the COVID-19 recession, it has been anticipated that smaller apartment owners would bear the brunt of the problems in the multifamily sector.
If rent payments are late or units are empty, there are fewer apartments to spread that revenue loss over. Also, many tenants in smaller apartments are likely to have lost jobs in this recession.
Facing those headwinds, it shouldn't be a surprise that through August, 76% of loans in forbearance were tied to their Small Balance Lending program, according to Freddie Mac.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
