Capital Streams Grow for Rehab - Apartment Renovation, Debt via Multifamily Executive Magazine

Just two years ago, it was hard to find money if you wanted to buy and rehab an apartment building. But as rents have recovered, the opportunity for rehab has opened up. That's brought money back in the game.

“There was a time period when rehab really didn’t make sense financially,” says Kevin Smith, a director at New York–based Centerline Capital Group, which opened an Alternative Capital Markets division to source nonagency money for its clients. “That’s changed dramatically since last year.”

Rising rents plus the availability of capital and the need to fix deferred-maintenance issues have helped drive the return of rehab. “There are opportunities to go in and do a minor rehab or a major rehab and see a decent return on your investment,” Smith says.

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