The COVID-19 pandemic continues to be the most dominant issue throughout the United States today, shifting the way many businesses operate amongst unprecedented uncertainty. Many local economies throughout the country were widely impacted, and while some have bounced back, others continue to struggle. Multiple signs continue to show that the economic slowdown may be nearing its end as market sentiment shifts from defense to cautious offense, but the possibility of a second wave has many treading carefully.
As investors of workforce multifamily housing assets, ArborCrowd has been closely monitoring occupancy levels in apartments across the country, noticing its relatively low levels of vacancy. Within commercial real estate, some asset classes have been far less impacted by the economic fallout caused by the virus. The multifamily asset class has performed relatively well with full or partial rent collections from April through August of at least 91% each month. This performance is partly due to the unprecedented stimulus from the government and also because people always need a place to live, providing stability to apartment owners. However, what future rounds of government aid will look like, and the length of the COVID-19 pandemic remains to be seen.
We have no doubt that opportunities to invest will present themselves – as they always do after extreme turbulence. However, as we seek out those opportunities, we are exercising caution and urging further transparency and due diligence in seeking out investments at the bottom of the market. We do believe that there is light at the end of the tunnel.
During this time of uncertainty, ArborCrowd strives to be a source of useful information for our investors and online community. Below are informative articles and links to various helpful resources. Be sure to check this page regularly as we will frequently update this information.
Of course, if you have any questions, you can reach out to our Investor Relations team by emailing [email protected] or calling (844)-365-1200.
Here are some links to sites we thought would be helpful.
USA Government COVID-19 Response
National Multifamily Housing Council
Federal Housing Finance Agency
Centers for Disease Control and Prevention
Originally published April 2020