For investors looking to underwrite apartment properties, the eviction moratoriums from The Centers for Disease Control and Prevention (CDC) and local state governments are creating some uncertainties.
Essentially, investors will need to discount the value of the rent roll more than normal in some acquisitions. "For investors, it's just uncertain as to how you can bank on a rent roll or solidify numbers until this [eviction moratoriums] shake out," says Andrew Rosenberg, a partner at Cassin & Cassin LLP. "Investors will proceed, but they'll proceed more carefully, meaning they either have better reserves or they pay a higher rate."
While the moratoriums will hurt revenue, Rosenberg thinks most properties will be fine in the long term. So investors with longer time horizons will still benefit from owning apartments.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
