Monthly Archives: March 2018

Preparing for the Impending Real Estate Downturn

​It’s good to read articles like this to keep things in perspective. Yes, there has been quite a run up in the commercial real estate space recently and the downturn will be inevitable. Having been through a few cycles already, some of the ideas they site are ​good ones. When the market is rising everyone seems to be a genius, but your real estate knowledge will be truly tested when the market moves against you. So getting ahead of the issues by negotiating long-term leases, pursuing rehabs, working on maintenance issues and embracing technology is sound advice. We can either help you in advance or when the poop hits the fan. The choice is yours.

-Adam Horowitz, Lever Capital Partners

Click here to read about how you can prepare for the inevitable real estate downturn


Increase in Multifamily Development Costs

​As the cost of lumber, steel, other materials and labor increases, a strain is being put on the multifamily apartment developers​. For a group that raises capital like ours, this makes our job a little harder since the margins tend to decline in this type of environment. At this part of the cycle our job is to determine the strength of the borrower and work towards making sure they have the best team put together. Weaker developers will have a harder time getting financing. You’ll have to show a proven ability to develop similar projects at or below cost to get the lending and investing community excited about your deal.

-Adam Horowitz, Principal, Lever Capital Partners

Click here for more insight on apartment development projects becoming more expensive


Is Apartment Development Specifically for Short-term Rental the Future?

There are going to be plenty of pivots regarding the short-term rental market. Many owners and developers are trying to take advantage of what they see as a way to capitalize on the increased use of services like Airbnb. Although markets like NYC and Las Vegas crack down on the use of short-term rentals in larger buildings or in residential neighborhoods, those cities and others are looking for ways to make it work within the legal system. I’ve seen transactions come across my office for whole buildings and condo type spaces that plan on catering to short-term rentals. I think the market will look very different in a few years as the various models sort themselves out.

-Adam Horowitz, Principal, Lever Capital Partners

Click here for more insight into short-term rental projects