Hard to keep justifying Class A at 4.75-5 caps or Class B at 5.25-5.50 when the rent growth everyone underwrote isn’t showing up, concessions are still everywhere & expenses keep climbing.
The last two weeks probably blew up half the deals in your pipeline
Then you’ve got all the 22-24 acquisitions and developments + supply wave underwritten with cheap debt and aggressive growth assumptions. NOI is missing big, refinancing costs are worse, and proceeds aren’t sizing anywhere near what sponsors need.
Lenders can only kick the can down the road for so long
