Phoenix American Releases White Paper on the Ongoing Impacts of the COVID-19 Pandemic Crisis on Multifamily Real Estate and 2020 Outlook for the Sector
Report Provides Insights and Data on Rental Payments, Sales, Pricing and Considerations for Real Estate Investment Fund Sponsors
August 17, 2020
SAN RAFAEL, CA, Phoenix American, a full-service fund administration provider for alternative investment funds, has published a new white paper examining the ongoing impacts of the COVID-19 pandemic crisis on multifamily real estate across the United States. Multifamily & COVID-19 Federal Support, Rental Payments and Risk Outlook for 2020 analyzes the effects on multifamily real estate five months into the pandemic crisis and the outlook for the rest of 2020 and beyond.
The paper draws on Phoenix American’s observations as a fund administration provider, conversations with sponsors of its many client real estate funds as well as interactions with partners, intermediaries and other participants in the industry.
Top takeaways from the report include an analysis of the effect of federal supplemental unemployment benefits, changes in renter behavior and effects on the fundamentals of the multifamily sector.
• Federal Unemployment Support has been essential in keeping renters able to pay their rent. But with the initial round of help expired and congress deadlocked over an extension what will be the effect on multifamily?
• Forbearance Policies and several state policies have kept evictions at bay. But for how much longer? And what owner appetite is there for evicting delinquent tenants?
• Multifamily Fundamentals have been effected by changes in renter attitudes toward urban environments, remote work and living with extended family. But by how much. And will it last?
• Sales of Multifamily Properties have sagged with the pandemic shut-downs but pricing has shown a remarkable resilience.
• Long-Term Demand will depend on the permanence of pandemic-related lifestyle changes. Owners are concentrating now on keeping tenants healthy, keeping rents coming and marketing in a socially distanced environment.
With a perspective coming from the experience of alternative investment real estate funds, Phoenix American emphasizes the need for real estate fund sponsors to be able to respond operationally to pandemic-related changes in strategy with innovative and flexible back-office solutions. New approaches to fund raising, cash flow and deal acquisition employed by Phoenix American client funds are supported by a versatile and robust back office infrastructure.
“The economic disruption brought on by the pandemic forced some real changes to the way real estate funds operate,” said Andrew Constantin, Senior Vice President, Operations for Phoenix American. “Our systems and services were designed to adapt to client needs.”
About Phoenix American
Phoenix American Financial Services provides full-service fund administration, fund accounting, transfer agent and investor services as well as sales and marketing reporting to fund sponsors in the alternative investment industry. The Phoenix American aircraft group provides managing agent and accounting services for securitizations specializing in the commercial aviation leasing industry. The company is a subsidiary of Phoenix American Incorporated along with Phoenix American SalesFocus Solutions, providers of the cloud-based MARS CRM, Sales and Marketing Reporting and Compliance Management solutions for banks, insurance companies, asset management firms and other financial service organizations. Phoenix American was founded in 1972 and is headquartered in San Rafael, CA.
For more information, contact Phoenix American at 1-866-895-5050 or visit www.phxa.com.
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