Bonds Yields Continue to Slowly Tick Upwards

Hope everyone is staying dry, and fingers crossed all of our roofs & gutters hold up this weekend. In all my years in LA, I’ve never seen such a cold and wet winter. Feels like I’m back in Brooklyn…

On a side note, the San Gabriel mountains are expecting up to 8 feet of snow by Sunday morning. Crazy. If any of my clients are planning to sneak in some last-minute skiing up at Mt. Baldy, let’s meet up!

Capital Markets Update

Bonds yields continued to slowly tick upwards this week as market participants expect two more rate hikes from the Fed this year at the March and May meetings.

Overall, we have observed interest rate floors moving up in response to this upward movement in bond yields.  For those considering a refi or acquisition, locking rate today with a flexible prepayment structure just feels best to allow repositioning flexibility when rates (hopefully) improve over the next 36 months.

Interest rate ranges for Multifamily today:

5 Year – 5.50% -5.88%

7 Year – 5.65% - 5.90%

10 Year – 5.70% – 6.00%

Financing needs? Reach out to me or Greg Kavoklis, our Capital Markets Director, to set up a 5-minute call: gregory.kavoklis@matthews.com | 818-206-5835.

Weekly Market Activity – WeHo, Beverly Grove, Pico Robertson, Fairfax, Mid-City

90019, 90035, 90036, 90046, 90048, 90069

2/24/23, Last 7 Days

New Listings:

1.     1259 S Camden Dr [90035] – 15 Units for $17M, 1.84% Cap, 28 GRM, $685/sf, Very Overpriced (1968)

2.     1251 S Wilton Pl [90019] – 8 Units for $2.2M, 4.19% Cap, 15.84 GRM, $390/sf (1934)

3.     844 S Holt Ave [90035] – 6 Units for $2.95M, $536/sf, 23 GRM, 2.9% Cap, Overpriced (1956)

4.     1123 S Citrus Ave [90019] – 4 Units for $1.9M, $382/sf, 18 GRM, 2+1 Units (1928)

5.     1649 S St Andrews Pl [90019] – 13 Units for $2.9M, 14 GRM, $344/sf (1963)

New Closings:

1.     4647 Pickford St [90019] – 4 Units for $3.4M, 5.68% Cap, $478/sf, New Construction (2022)

Please reach out to me directly with any questions or if you need assistance in evaluating an asset. And as always, thank you for reading.