Seeking MF Development JV Equity

Based on previous WSO threads, it appears that securing JV equity for multifamily development deals has been challenging recently. Here are some insights:

1. Current Market Conditions:

   • There has been a noticeable difficulty in closing JV equity deals over the past several months.
   • The market is experiencing a period where underwritten returns and yield on cost (YOC) are lower than desired due to prudent assumptions.

2. Tailwinds in Multifamily:

   • Despite current challenges, there are still positive indicators for multifamily developments, especially once the supply and economy stabilize.
   • Home ownership remains out of reach for many, particularly younger generations, which could drive demand for multifamily housing.

3. Capitalization Challenges:

   • To get deals capitalized, one must make realistic assumptions about rents, cap rates, and other financial metrics.
   • Some developers are finding it difficult to get deals off the ground without making overly optimistic assumptions.

4. Market Focus:

   • It's crucial to bet on specific markets or submarkets that show promise and stability.

For more detailed discussions or to connect with others who might have leads on groups putting out capital in the multifamily space, consider engaging directly on the WSO forums or reaching out to members who have shared similar interests.

Sources: Is anyone capitalizing development deals??, Value-Add Multifamily Investments, Q&A: Affordable Housing Acquisitions, Great Deals You've Recently Done, Capital partner and Developer splits