Finding Discounted Multifamily Loans

Banks admit to having RS exposure

Some high-profile investors are coming out and declaring that the 10-year treasury yield will exceed 5.0% this year, and if that comes to pass, it will mean more trouble for rent stabilized owners. Trouble in the sense that higher treasury yields mean interest rates on loans will go up, and when existing loans come for maturity or repricing, borrowers will struggle to meet their obligations. They’ll either cash in refinance, sell assets, or default. The lender for rent stabilized property wants to avoid defaults and eventual foreclosures because of the time and cost involved.

So what can the lenders do? One option is to sell paper. And that’s precisely what buyers like PH Realty Capital and Rockledge were hoping they would do. The companies bought the debt collateralized by 452 units of rent regulated multifamily in the Bronx. See below for transaction details.

Source: PincusCo & PropertyShark

Though there is more to the story here – the owner of the buildings in question was in dire straits ever since 2019’s HSTPA changes the rules of the game – the story was topical. Buying notes seems is the play of the day. Below, you will find a list of active multifamily lenders with billions (and some just millions) of rent stabilized property exposure – complete with the number of rent stabilized loans they had on their books as of a year ago. Find the list below, and happy hunting!