After nearly two years of inactivity, some commercial real estate buyers are signaling a willingness to get back in the game, while others remain on the sidelines. Many well-capitalized investors have been sitting out waiting for a clear sign we have reached the bottom before getting back into the market. While a sweeping wave of multifamily market distress may not have materialized as expected, nevertheless, some high-conviction buyers are back as players in the market, and we are one of them. We see an opportunity not seen since the great financial crisis (GFC) unfolding, with current metrics aligning to allow for similarly lucrative opportunities in the near term for those investors willing to take calculated risks despite the lack of an “all clear” sign.

Still in the early innings of distress

The commercial real estate market is feeling the effects of hundreds of billions of dollars of multifamily loans maturing in the past year and in the next