Multi-Family

Multi-Family Market Overview

NREV believes that extreme dislocation in the multi-family market caused by overleveraging, excess debt, and inflated prices will reach a bottom in 2010, signaling an exceptional buying environment for well positioned investors.  During 2010, the debt markets will remain constrained and sales activity will continue at a nominal pace due to buyer seller disconnect.  Average apartment prices have fallen 25%-40% over the last 18 months and declining rents and rising vacancies have plagued most markets.  The result has been a reduction in NOI and eroded equity positions leaving borrowers with limited options and overleveraged positions with cash short falls on pending loan maturities.  As $300 Billion of the $900 Billion multi-family debt matures over the next five years, lenders and servicers will clear bad debt from their asset ledgers and borrowers will capitulate, creating a Tsunami of foreclosures and massive opportunities to acquire distressed multi-family properties at substantial discounts.

NREV’s Multi-Family Investment Strategy

By the end of 2010, with the bulk of the multi-family erosion behind us, we believe that millions of homeowners with severely delinquent mortgages and negative equity will leave their homes, generating an unprecedented demand for multi-family space.  We intend to enter the market before prices begin to rebound.

Our strategy relies on leveraging unmatched key relationships with national/regional banks, special servicers and government agencies in the acquisition of distressed/Real Estate Owned (REO) multi-family properties and note acquisitions at deep discounts.  NREV places an emphasis on systems management, concentrating on detailed market analytics, due diligence, acquisitions, property stabilization, asset management and dispositions to maximize returns to our investors.