Calvera Insights

We can’t prognosticate where interest rates are headed or if the Fed is pushing the economy into a recession. We do know that growth is slowing and that there remains a large bid-ask spread between sellers and buyers in the apartment market.

There are going to be fewer apartment buildings built in the near term as interest rates and slowing rents make it unfeasible to begin new construction. According to an analysis by Real Page, the U.S. Census Bureau shows a seasonally adjusted drop in multifamily permitting as of July 2023 of 32.2% compared to the prior year.

The inflation rate in Minneapolis was tracked at 1.8%, primarily due to low shelter costs. New [apartment] supply coupled with tepid demand has been a killer for rents and occupancy

Subsequent increases in the Fed Funds rate are going to continue to put upward pressure on mortgage rates, which will continue to exacerbate the growing unaffordability of single-family homes.

The apartment market is at a standstill, and the numbers show it. As of Q2 2023, multifamily transaction volume (i.e., sales of apartment buildings) is down 71% compared to a year ago and is on par with activity back in 2009, in the middle of the Great Financial Crisis when there was more fear in…

Our investors are always looking for ways to be invested in cash-flowing real estate at all times. In the most efficient manner possible. The Calvera Income and Growth Fund is just that, and we believe that the timing is just right – given the current and pending distress in the market. Learn why…

Crowdfunding is safe, right? Not always. This article details one company’s involvement in a bad investment that resulted in bankruptcy proceedings, lawsuits and the termination of a CEO. Learn how the Calvera Income and Growth Fund is nothing like crowdfunding, it’s about transparent financials.

There aren’t many groups like Calvera in the Twin Cities, and I am curious how much the local real estate market and one’s experiences shape their outlook on risk and opportunity.

The front page of the Wall Street Journal recently showcased what can happen to trusting individual investors when a real estate syndicator’s internet savvy is combined with inexperience in a turbulent market. A syndicator based in Dallas, TX, who at one time amassed an apartment portfolio of 7,000 units worth $500 million, recently lost a…

Gain a better understanding of the forces behind today’s apartment property distress—and why a new wave of deals ready to hit the market may be a direct result of over-leveraged owners.