Today’s macroeconomic environment is one of geopolitical uncertainty, persistent inflation, higher interest rates and elevated levels of capital market volatility. Against this backdrop, many institutional investors are looking for easy-to-understand investments yielding predictable cash flows with limited downside and low correlation with other asset classes. We believe permanent loans on U.S. multifamily properties underwritten to strict lending criteria and held to maturity meet these objectives. A diversified pool of such loans should be evaluated as a viable permanent addition to portfolios, and as ballast to protect against the buffeting impact of strong headwinds.

Investment characteristics of permanent multifamily loans

Permanent loans on stabilized (well-leased) multifamily properties are compelling for several reasons: