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Q&A Gelt’s Wasserman: Financing Big Multifamily Deals
Gelt, Inc.’s Keith Wasserman is set to speak at Connect Apartments later this month in Los Angeles. He’s been involved in the acquisition of several commercial, industrial, and residential properties, mainly in the Western U.S. The SoCal-based company’s portfolio now totals more than $1 billion in assets, including 8,000 apartment homes and mobile home sites.
We asked Wasserman to share a few insights leading up to the conference about the ways bigger multifamily deals are getting financed today in our latest 3 CRE Q&A.
Q: What does it take to get a bigger multifamily deal financed today?
A: The majority of our acquisitions have been financed with long-term, fixed-rate Freddie Mac and Fannie Mae. With our long-standing relationship with the agencies, financing is readily available for us on most of our larger out-of-state acquisitions.
Q: Can you point to some recent deals that reflect those considerations or factors?
A: On a 472-unit acquisition in Albuquerque last year, we received a 12-year, fixed rate loan, with 75% LTV and five years of interest-only payments. This safe, long-term loan met our business plan, which focuses on consistent long-term cash flow for the asset.
Q: What challenges and opportunities do multifamily players see in balancing for-sale and rental product in their portfolios?
A: We only own rental product. With so many data points showing the continued trend amongst millennials and baby boomers to rent instead of own, we believe in the multifamily rental space far into the future.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Sale/Acquisition
