When fighting the potential economic collapse of the pandemic turned into a zero interest rate policy, the result fanned commercial real estate development in all ways, shapes, and forms. One of them was multifamily syndicators, according to Trepp. "[M]ultifamily syndicators increased their rate of acquisitions considerably, often with a value-add strategy," wrote author Emily Yue.

She continued: "These syndicators frequently relied on floating rate loans at low-interest rates with the hope that these properties would stabilize quickly after renovations were made and that rents would increase in a market with supply-and-demand dynamics leaning in their favor."

Which worked at the time and might have continued to so long as the cheap money and high leverage continued to allow deals to pencil on refinancing. Except, as everyone in the industry is painfully aware, they didn't. Values have fallen, cap rates gone up, and for many projects ongoing cash flows could not keep pace with rising interest rates — particularly variable — and carrying costs that have become nearly as burdensome.