Gray Capital Releases First CRE Loan Maturity Report

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Jun 06, 2023, 09:00 ET

Report predicts a wave of anticipated commercial real estate debt maturities in October 2023, resulting in strategic multifamily acquisition opportunities in the near-term.

INDIANAPOLIS, June 6, 2023 /PRNewswire/ -- Gray Capital, a family-owned and operated private equity real estate firm specializing in the strategic investment and acquisition of multifamily apartments in growing markets throughout the Midwest, today announces the release of its first report on Loan Maturities and Distress in the Multifamily Investment Market. These reports will be updated and published quarterly with new insights and analysis by Gray Capital.

Gray Capital is an industry leader in aggregating and disseminating market trends through routine, transparent communication and insights on the multifamily investment landscape. Gray Capital has compiled data from Costar, the Mortgage Bankers Association, the National Multifamily Housing Council Survey of Apartment Conditions, the Board of Governors of the Federal Reserve Bank, and the Federal Open Market Committee (FOMC) Economic Projections to inform their expert insights into the future of the multifamily market.

The report predicts an upcoming wave of Commercial Real Estate (CRE) loan maturities in the fourth quarter of 2023, which may lead to financial distress for those who rushed to acquire assets at record low cap rates near the end of 2021 and early 2022. The report explores how multifamily property sales and interest rates expectations are presenting new opportunities for investors to get ahead of market volatility and take advantage of strategic opportunities to get involved in new investments early.

Multifamily apartment sales reached their peak at over $115B in Q3 2021 when interest rates were at an all-time low. Now that interest rates are higher than they have been in over a decade, it will become favorable for these multifamily borrowers to sell their properties at lower prices rather than refinance and be forced to bring more cash to the table to avoid default or foreclosure. Interest rates are expected to remain elevated through the end of 2023, incentivizing multifamily borrowers with maturing bridge loans or floating-rate loans to sell their properties now.

"Gray Capital is the right team, right firm, and in the right markets to have an edge in today's challenging environment," said Spencer Gray, CEO of Gray Capital. "While the next six months to a year remain uncertain, there are incredible opportunities and assets that can be acquired at a significant discount by staying ahead of the curve and relying on the data and deep market analysis such as what's shared in our inaugural Loan Maturity Report."

This report allows multifamily investors to understand the impact of current trends in the industry in order to make informed decisions on real estate investment opportunities driven by data and market insights. By utilizing comprehensive data and robust research to make sound real estate investment decisions, Gray Capital is uniquely positioned to leverage these forecasted conditions to accelerate its portfolio and maximize returns for its investors.

To learn more about the evolving multifamily investment market, download the full report here. To learn more about Gray Capital, visit www.graycapitalllc.com or follow Gray Capital on Instagram.

ABOUT GRAY CAPITAL
Gray Capital LLC is a real estate investment firm that specializes in the acquisition and management of high-quality assets in growing Midwestern cities. The firm's investment strategy is opportunistic, with a focus on Core Plus and Value Add opportunities. Gray Capital leverages data, broker, lender, and owner relationships to source off-market opportunities, and pursues high-quality assets in financial distress due to financing. The firm's target demographic is above-median income, and it employs fixed-rate agency and HUD financing.

SOURCE Gray Capital