Just had one of the largest landlords in the country drop a down the fairway apartment deal because they "don't know how to price risk appropriately today". Not a retrade, just a dropped deal.
Our team is pencils down for at least two weeks to see what happens. I don't pretend to be able to predict the future, but it's going to be an interesting few weeks.
On the development side, we're still moving along with new pursuits. Need to have a pipeline secure for after this is over, whether that's in two months or a year.
If we’re buying from listings we’re doing something wrong ;)
We already had a wide range of target sites. We’re still staying in touch with land sellers and local economic development authorities and trying to keep the process moving along as if it everything was normal, even though it clearly isn’t.
We think it's a great time to go into contract. Take a nice 90+30 closing period, which gets us through the worst part of the crisis, and let the Seller assume all the risk while pricing in that downside.
I'll add another data point to the mix. We had a ~$120 MM multifamily deal that had a call for offers about 2 weeks ago. We received 24 offers with the majority of those falling within the brokers guidance. It was a strong list of national multifamily buyers. We held best and final last Friday (3/20). All but 4 firms fell out. Only 1 of those firms increased their price (1031 buyer whose sale hadn't closed). The other 3 were shaky at best. While this is a sample size of 1, this doesn't bode well for transaction volume in 2020.