NEW YORK CITY–The challenge of accessing capital to finance new projects is imposing a "forced pause" on some multifamily developers and causing others to go back to the drawing board, a panel of developers at GlobeSt.com's Spring Multifamily conference told us last week.
"We've got 2,000 units in our project pipeline ready to go, so it's not by choice that we find ourselves under capital constraint," said Shawn Seaman, president of Hoffman & Associates. "We're in sort of a forced pause right now. We're trying to differentiate projects so we can get financing moving forward."
"We've gone back to the drawing board on a number of projects to resize them and make the numbers more palatable — not from a return standpoint but just on the overall deal size," added Daniel Doyle, chief operating officer of The Beach Company.
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