Year-to-date, low interest rates and strong operating fundamentals have fueled the multifamily investment market and boosted values, but in recent months, the industry has seen rates begin to rise. Paul Daneshrad, president and CEO of StartPoint Properties, a Beverly Hills-based commercial real estate company with a portfolio worth $800 million in owned and managed properties, sat down with GlobeSt.com to discuss the current multifamily investing market.
“As interest rates start to creep up, 120 basis points over the last 3 months, this has put some pressure on pricing,” says Daneshrad. Los Angeles is currently performing in alignment with the other two major Southern California submarkets, San Diego and Orange County; however, the most growth is currently coming from Northern California, which is one of the key markets in the nation, showing double-digit growth over the last several years.
Read more...Interest Rates Pressure Multifamily Prices - Daily News Article - GlobeSt.com