The return of the gateway market in multifamily

The multifamily market in gateway cities is returning with significant opportunities for investors, said Adam Levin, executive managing director at Levin Johnston, and Robert Johnston, senior managing director at Levin Johnston, in a recent exclusive interview with Institutional Real Estate, Inc.

High interest rates and record housing prices, combined with new housing developments being further out from urban centers, has led to “an increasing number of younger professionals who see rentals as their preferred housing,” the two said.

Levin and Johnston commented on the recent changes in the multifamily-financing landscape and emphasized the growth in private credit access for deals. Bank lending has decreased in the wake of “the SVB debacle, so funds that have large stores of cash now want to deploy it and will be looking more and more to real estate for deals.” They expect that property owners who want to sell will eventually become more comfortable with the lo