No one could have predicted the tumultuous year that 2020 turned out to be. However, from a multifamily standpoint, it was not as catastrophic as we feared in March and April. Some properties have suffered slightly lower collection rates as tenants lost jobs. At the same time, most tenants made it a priority to continue to pay rent. While there still is a federal eviction moratorium in place, rent is not canceled and almost all operators have been able to work with tenants to put them on payment plans if they fell behind.
We also continue to see a tremendous appetite for multifamily investments. Investors are looking for a return on their capital, and the returns on bonds, savings accounts, and CDs are so low that they don’t keep up with inflation.
Therefore, there continues to be an interest in investing in real assets. Low interest rates also make the multifamily attractive. Of course, this continued interest in the asset class makes it hard to find good deals, but our JCORE Team continues to develop broker and owner relationships so we can find a deal that makes sense to offer to our investors.