Wednesday, July 9, 2025
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FeaturesHeartland Feature ArchiveMultifamily

Why More Multifamily Buyers Are Assuming Sellers’ Loans

by Kristin Harlow

By Harrison Pinkus, Interra Realty Though many multifamily investors have been able to close transactions in today’s less-than-ideal economic climate, high interest rates remain a challenge for some. However, there is one strategy that can propel a deal over the hurdle of high interest rates and across the finish line: assuming the seller’s loan. With plenty of investors looking to acquire assets despite elevated rates, loan assumptions offer a win-win opportunity, as long as the buyer and seller surround themselves with a knowledgeable team of brokers, attorneys and lenders. The biggest advantage for buyers is a lower financing rate than what is currently available on the market. Buyers also benefit from lower closing costs and no appraisal. Meanwhile, loan assumptions at a lower rate provide sellers with the leverage to command a higher asking price for their property. Loan assumptions are by no means the only route to closing a deal in today’s environment. After all, investors can always move ahead with a purchase now and finance at current rates with a plan to refinance later if rates improve. But, since the buyer must be able to acquire debt financing and carry a higher rate for a year or more …

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Eran Dor Pavlov Media Future Multifamily Tech
Content PartnerFeaturesLeasing ActivityMidwestMultifamilyNortheastPavlov MediaSoutheastTexasWestern

Multifamily Internet Connectivity: Planning for the Future

by Sarah Daniels

Internet connectivity is the digital equivalent of a foundation for any multifamily property. Residents want access for communications, entertainment, business and personal needs. Property operators need connections for management and reporting software resources. Good and reliable connections to the Internet, and a dependable Wi-Fi network as a way of distributing that access, are essential. Looking three to five years into the future, these connectivity needs become even more demanding and complex. The Internet of Things (IoT) creates a layer of interesting application and use cases for property owners. IoT defines the collective network of connected technology that enables communication between devices (“things”) and the cloud and/or among the devices themselves. IoT devices are the technology that creates smart home and buildings. IoT devices also support and simplify functions such as rental property management, energy usage reduction, maintenance cost reduction and more. “Looking into the future, IoT applications can make the property more efficient in surprising ways,” says Eran Dor, vice president of technology products at Pavlov Media. Leak detectors can provide early warning of flooding and appropriately shut off water before any significant damage occurs. Trash cans can be equipped with sensors that indicate when to collect, rather than requiring …

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FeaturesRetail

Reaching New Heights: Bouldering Gyms Offer New Kind of Fitness Activation

by Kristin Harlow

When looking for new markets that might be a fit for their brand, the owners of VITAL Climbing Gym, a bouldering concept, seek out locations that are “in the mix and part of people’s lives.” This is somewhat paradoxical with the genesis of the company, which originated during a long and very solitary bike tour more than a decade ago. Co-founder David Sacher recounts that he was alone in Argentina (having started his tour at Prudhoe Bay in Alaska) and struggling through a “windy, slow and tough” stretch when the idea for the first VITAL gym emerged as a sort of exercise in escapism. California Dreaming Sacher, who had climbed throughout college with his now business partner, Nam Phan, envisioned “a little climbing gym” with a “very laidback culture,” 24-hour access and a barbecue out front — in short, a place where he and his friends could “cook food and hang out and climb.” In 2010, that dream became a reality with the opening of the first VITAL Climbing Gym in California, where Sacher and Phan attended school. In addition to achieving the atmosphere Sacher envisioned, which he describes as “happy,” “familial” and that of a second home, the facility …

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Randy Dowis NAI Industrial Colorado Springs
ColoradoContent PartnerFeaturesIndustrialLeasing ActivityNAIWestern

Diverse Demand, Tight Supply Elevate Colorado Springs’ Industrial Market

by Sarah Daniels

Industrial activity runs a wide gamut in Colorado Springs. Situated on the busy I-25 corridor, the Centennial State’s second-largest city is a key distribution point to Northern Colorado and surrounding states. But distribution is only part of the story. Thanks in part to Fort Carson Army base on its southern edge and the U.S. Air Force Academy to its north, the seat of El Paso County is home to an assortment of aerospace and defense manufacturers, as well as other industry clusters ranging from medical equipment makers to suppliers of semiconductor components. “It’s a military-friendly community that offers a lot of support for entrepreneurs and families just separating from their respective branches,” says Megan Mechikoff, an associate broker specializing in industrial real estate at NAI Highland Commercial Group. “That generates a lot of startups that work directly for the Department of Defense or attach themselves to a larger brand like Lockheed Martin or Northrop Grumman.” Colorado Springs attracts employers with its highly educated workforce, affordable cost of living and excellent quality of life, which includes mild winters on the protected Eastern slopes of the Rocky Mountains and proximity to outdoor activities and winter sports, Mechikoff says. What Colorado Springs lacks, …

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Susan Mello Life Insurance Multifamily quote
Content PartnerFeaturesLoansMidwestMultifamilyNortheastSoutheastTexasWalker & DunlopWestern

Investments from Life Insurance Companies May Throw a Lifeline to Multifamily Sector

by Sarah Daniels

No one in the multifamily sector needs a lecture on the difficulty of financing projects and deals these days. But, when there are challenges in the market, attention to detail and alternative financing can result in a better chance of finding solutions. Considering life insurance companies as viable investors is one example. Insurers often can provide needed liquidity as they search for yield, especially in the multifamily world. Multifamily fell to the same forces that have affected every other commercial real estate (CRE) class. After a buildup of easy money over more than a decade, the zero-interest rate policy in response to the pandemic collapse set asset investment on fire. Prices soared, opportunities were widespread and big leverage was in. “Starting in 2019/2020, you saw a lot of floating-rate bridge money,” says Susan Mello, executive vice president and group head of capital markets at Walker & Dunlop. But as loans came up for refinancing, quick and large Federal Reserve hikes of the benchmark federal funds rate kicked up loan costs everywhere and made penciling a deal difficult, if not impossible. “The rapid rise of interest rates put values in question across the board. That’s exacerbated by how much liquidity there …

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InterFace-Seniors-Housing-Keynote
Conference CoverageFeaturesMultifamilySeniors Housing

Investment in Infrastructure, Processes is Key to Owner-Operator Success, Says Expert Panel

by Taylor Williams

By Channing Hamilton ATLANTA — Today’s seniors housing market is a tough one, characterized by an inflationary environment and high operational costs. Amid the challenges the industry currently faces, owner-operators within the sector must focus on controlling expenses, such as labor and insurance, to maintain profitability — and earlier is better when it comes to planning to mitigate these expenses. Eric Mendelsohn, CEO and president of National Health Investors, a REIT that specializes in seniors housing, emphasized the importance of labor market analysis in the underwriting stage of operations. “Labor is a key element of expense structure in the building,” he said. “Before, we could give it a cursory look. Now, it’s important to really drill down into a market.  “We pay closer attention to labor expense and availability,” he continued. “We’ll see what our competitors are paying, and then see what other industries such as retail and fast food in the area are paying. If Target and TGI Fridays are unable to find labor, that’s an indicator that you’re going to have a problem.” Mendelsohn’s remarks came during the keynote address at the 10th annual InterFace Seniors Housing Southeast, a networking and information conference hosted by France Media’s InterFace …

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FeaturesHeartland Feature ArchiveIndustrial

Onshoring Will Remain Influential Driver of Industrial Demand

by Jeff Shaw

By MaCauley Studdard In the last two-plus years, rent growth and net absorption have both reached new heights, fueled by record levels of demand as a result of surging e-commerce sales. While e-commerce sales growth and the ongoing operational trend of maintaining higher inventory volumes has provided a tailwind to industrial fundamentals, there is also a third critically important component of demand growth that could continue to have an outsized influence on the industrial market in the months and years ahead: onshoring supply chain operations. Understanding the broader dynamics behind the onshoring trend is important to accurately measure its influence on the industrial market. Slowing trade growth The rapid pace of growth in global trade has been one of the most significant economic trends of the last half century: the defining characteristic of modern economies. The percentage of the world’s economy attributed to international trade nearly doubled between 1973 and 2008, growing from approximately 30 percent to 59 percent. While international trade remains the single most influential factor in the global economy, that figure has remained somewhat static in the last 15 years. Several factors have contributed to slowing global trade growth, including: • Growing demand for skilled labor  • …

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FeaturesIndustrialSouth CarolinaSoutheastSoutheast Feature Archive

Fair Property Taxes Are Essential to Manufacturers

by John Nelson

COVID-19 laid bare many problems inherent in offshore supply chains and spurred widespread interest in reshoring manufacturing to the United States. As companies and communities explore site selection and expansion opportunities, they should remember that manufacturing profitability often hinges on tax strategy. Staging a comeback For the first time in decades, industry and the public sector are working to make American manufacturing competitive in a rapidly changing global marketplace. The recent enactments of the Inflation Reduction Act, the Bipartisan Infrastructure Law and the CHIPS and Science Act have directed billions of dollars into enhancing domestic manufacturing capacity. The semiconductor industry presents a high-profile case study. The United States holds 12 percent of the world’s semiconductor manufacturing capacity, eroded from 37 percent in 1990. The CHIPS Act’s $52 billion in federal funding is intended to strengthen domestic semiconductor manufacturing, design and research and reinforce the nation’s chip supply chains, fortifying the economy and national security along the way. Simultaneously, the United States is becoming a leading producer of electric vehicles and vehicle battery plants. Since 2021, announced U.S. investments in semiconductors and electronics exceed $166 billion, and announced U.S. investments in electric vehicles and battery manufacturing exceed $150 billion. Deciding where …

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Cory Douglas Multifamily Wi-Fi demand
Content PartnerFeaturesMidwestMultifamilyNortheastPavlov MediaSoutheastStudent HousingTexasWestern

Multifamily Must Innovate, Adapt Now to Anticipate Resident Connectivity Demands

by Sarah Daniels

“Traditional wired and wireless networks are becoming faster and more reliable with each new standard on the market,” says Pavlov Media CEO Cory Douglas. “We’re seeing multifamily consumers extend these data networks well beyond the need for just for voice and video. There are all kinds of new demands on multi-dwelling units (MDUs) for integrating Internet of Things (IoT), life safety and power and water management systems into traditional data networks.” For more than 30 years, Pavlov Media has been the leading national provider of residential Wi-Fi service, and now, with Douglas as the company’s newly named CEO, Pavlov Media has plans to build on its success through its unique technology and its eye on the innovation required by multifamily’s evolving needs. Douglas, promoted to replace retiring founder and CEO Mark Scifres, says what sets Pavlov Media apart is its ability to rapidly implement broadband Wi-Fi and video solutions for any style of community, located in any part of the country.  “That capability is really driven by the investments in our back office, technology and engineering workflows that we’ve developed over time,” Douglas explains. “It’s our goal to make the purchasing and deployment experience easy for our customers. It’s done …

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Features

Maintaining Loan Covenants: A Path to Favorable Credit Profiles for Borrowers

by Taylor Williams

By David Kanarfogel, Partner, Kanarfogel & Srolovitz LLP In anticipation of a potential credit crisis in commercial real estate finance, borrowers are well-counseled to be aware of various measures that lenders are taking to mitigate any surge in defaults, including an increased willingness to create loan workout options and offer complex credit solutions. In this article, attention will be given to another component of commercial credit that can trigger unexpected problems but that also affords opportunities to borrowers to positively differentiate themselves in a constrained credit environment: loan covenants. Commercial loan covenants are contractual provisions that borrowers agree to comply with as a condition of obtaining a loan. These covenants aim to protect lenders’ interests and ensure that borrowers maintain certain financial and operational standards throughout the loan term. Breaching a commercial loan covenant can have serious consequences for borrowers. When a covenant is breached, it typically triggers a default event under the loan agreement. The lender may have the right to accelerate repayment of the loan, demand immediate payment of outstanding principal and interest or take legal action to enforce the terms of the agreement. Breaching a covenant may also result in a loss of trust and confidence from …

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