While COVID-19 rocked the boat for many commercial real estate sectors, affordable housing is holding steady. As we move further into 2021, the sector continues to shine brightly and offer significant risk-adjusted investment opportunities for institutional investors. John Williams, president & CIO of Avanath Capital Management, chatted with Multi-Housing News about why the affordable sector appeals to institutional capital, how the industry has fared since the onset of the pandemic and where he sees the future of this asset class as we begin to emerge from this crisis.
Press releases & articles - March 2021
While multifamily deal activity hit a pause at the start of the pandemic, transaction volume started to pick back up by the third quarter of 2020 and is expected to see a boost in 2021. According to Newmark’s “Multifamily Capital Markets Report,” multifamily investment sales volume saw a quarter-over-quarter increase of 55.9% in the third quarter, the strongest sequential gain since 2011.
The amenities arms race was at a fever pitch at the start of 2020, as each new multifamily property tried to raise the bar of over-the-top enticements to lure prospects to their community. Then the COVID-19 pandemic hit. Now, instead of touting gleaming gyms, demonstration kitchens, and group-focused event spaces, operators have had to pivot to help residents feel “alone together,” without actually bringing them within 6 feet of each other.
It has been 12 months since the U.S. began sheltering in place as COVID-19 spread across the country. Now, a year later, there doesn’t appear to be a part of business, society and the economy that this novel coronavirus hasn’t touched.
As these changes linger, it’s easy to wonder what efforts introduced during (or accelerated by) the pandemic will remain for the long term. After a vaccine, will we abandon offices and keep working from home? Will we eschew brick-and-mortar retail for our Amazon app? Will we become more comfortable making significant decisions through virtual interactions?