š° Discounted multifamily loans flooding the market
Huge discounts on troubled propertiesādonāt miss out
Distressed assets are on the rise, creating a unique window of opportunity for investors.
Multifamily loan delinquencies have surged, pushing servicers into action and creating a pipeline of discounted assets.
As these loans hit special-servicing windows, more deals are coming to market, especially with foreclosures climbing 20% in April.
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In fact, regions like New Jersey are seeing a spike in filings, leaving assets ripe for the taking.
Meanwhile, the drop in CRE bank lending has choked off financing, leaving distressed sellers with fewer competing offersāperfect for all-cash buyers.
As investors swoop in on fire-sale office buildings, adaptive reuse projects are presenting high-upside potential, making now the time to act on these opportunities.
In this edition of the AltReports:
šø Delinquent loans flooding the market
šØ Foreclosure filings up 20%
š° Lending slump creates all-cash buying opportunities
š¢ Investors snap up outdated offices at fire-sale prices
š¼ Brookfield eyes distressed CREābig moves coming
Video of the Week: Housing Market Alert: Redfin's Shocking New Data
Chart of the Week: 25 Years of San Francisco's Housing Market
Podcast of the Week: Real Estateās in Trouble as Economy Slows
Multifamily Loan Delinquency and CMBS Servicing Woes Escalate
Delinquency rates on multifamily CMBS loans have surged to pandemicāera highs, signaling an uptick in distressed assets hitting the market.
Special servicers are on high alert, meaning more workout opportunities and potential discounted purchase options.
Borrowers struggling with rent collection are fueling a pipeline of nonāperforming loans.
š” Investor Takeaway: Scout CMBS pools for specialāservicing windows and bid on delinquent multifamily loans at a discount.
April 2025 Foreclosure Market Report
Overall foreclosure filings climbed 20% month-over-month in April, with hot spots like New Jersey leading the surge.
Persistently low repossession rates mean courts and servicers are slow to clear inventory, stranding assets until investors step in.
Regional foreclosures present niche-entry points for state-focused buyers.
š” Investor Takeaway: Target high-rate states for foreclosure research and build relationships with local trustees.
CRE Bank Lending Growth Drops to 11-Year Trough
Bank CRE lending growth has collapsed to its lowest level since 2014, choking off cheap financing for new developments and turnarounds.
Tighter credit standards mean distressed sellers face fewer competing bids.
Well-capitalized investors can offer all-cash deals to close faster and capture discounts.
š” Investor Takeaway: Arrange bridge financing or fund reserves now to capitalize on all-cash acquisition opportunities.
Whoās Scooping Up Shabby Offices?
Investors are swooping into office markets to buy outdated buildings at fire-sale prices.
Adaptive-reuse potentialāthink co-working hubs or residential conversionsāadds upside value post-acquisition.
Early entrants can shape redevelopment plans before competition intensifies.
š” Investor Takeaway: Identify urban cores with zoning flexibility and commission feasibility studies for conversions.
Distressed CRE Is In The Cross Hairs Of Brookfield Asset Management
Institutional players like Brookfield are circling distressed CRE, signaling both demand and pricing benchmarks for opportunistic buyers.
Their capital deployment pace offers a roadmap for deal velocity and hold-period expectations.
Smaller investors can follow these lead indicators to time entry and exit.
š” Investor Takeaway: Monitor large fund announcements for sector focus and align your deal pipeline accordingly.