Buying, Selling or Refinancing? Make Sense of the Market
If you’re thinking about buying a multifamily property — or already own one and don’t know whether to sell or refinance — now is the time to act. Between 2008 and 2010, a significant number of 10-year loans were originated. Those loans are now coming due, putting pressure on investors to make decisions in a complex market.
To complicate decision-making, the Federal Reserve has hinted at raising interest rates in the next 12 to 24 months.
“In the past year, Florida properties achieved high values,” says Ryan Wilson, senior financial analyst for Carriera Regan. “Treasury rates remained low and agency lenders (i.e., Fannie Mae and Freddie Mac) offered competitive terms, which drove the high prices. We believe that interest rates will likely increase in the next few years. But rates are still low and selling and buying factors are favorable, so now is the time to evaluate your options.”
Brokerage financial advisors are there to help their clients navigate these tricky waters.
“Some people think that brokerage firms are only interested in selling properties in the short term,” says Wilson. “But that’s really not the case with our group. We have a long-term view of the market, and we’re in the business of building an advisory relationship with our clients.”
The financial analyst’s role
Wilson’s team does much more than that. Whether a client is just thinking about buying or deciding whether to sell, refinance or hold a property, Carriera Regan experts’ market expertise and in-depth knowledge of the multifamily asset market is invaluable.
“We are committed to forging strategic partnerships with our clients and positioning ourselves as their primary advisor,” says Wilson. “We work with them long before they decide to sell, and our recommendations are always in their best interests, whether they sell the property or not. Sometimes, refinancing or holding can be a better option.”
Wilson’s team provides property valuations, determines ways to maximize the property’s value and helps owners weigh their options and assess long-term strategies.
“We build trustworthy relationships with our clients,” says Wilson, “so that when the time comes to sell, we’ve been alongside them throughout the entire process and have earned their trust and respect.”
The professionals at Carriera Regan have negotiated some high-dollar sales in the past year. In Bradenton, Vista at Palma Sola Apartments sold for $43 million and the Tampa Five-Property Portfolio closed for a combined $41 million. The Royal Portfolio, which included assets in Tampa, St. Petersburg and Orlando, closed for a combined $40.95 million.
“Since 2010, we’ve performed evaluations for four billion dollars’ worth of multifamily property and have transacted more than one billion dollars,” says Wilson. “We have sharp expertise in our niche market.”
The time is ripe
Wilson believes that buyers and sellers shouldn’t delay.
“If you’re a seller, you can realize a high value. If you’re a buyer, you can take advantage of favorable financing before rates rise. If you aren’t sure what your next step should be, start thinking about it now and consult an advisor to get a long-term plan in place,” Wilson advises.
Even if you do not plan on selling, learn what your options are and what factors impact your property.
“We like to work with clients to improve their properties so they operate more efficiently,” he said. “And when they’re ready to sell, our transaction, marketing and financing teams will all come together to help them realize their highest potential.”