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Vine Capital Partners | 2023 Update

Updated: Dec 17, 2023

Since June 2022, the FED has aggressively raised rates 6 times, with the latest hike just several days ago. Fortunately, on a recent apartment acquisition, we purchased an interest rate cap. A rate cap limits how high the interest rate, on a variable-rate loan, can increase in the event of aggressive rate hikes. Rate increases continue to put pressure on lending, and there has been a significant decrease in multifamily transaction volume Q1-Q3 of 2023.

As transaction volume slows, we remain hyper focused on the management of existing assets. We've worked to see steady progress on our Des Moines portfolio. Renovations continue to make progress, capturing rental rate increases and creating upside value. As our GP/Sponsor teams work hard on operational efficiencies, we are thrilled to be able to distribute projected returns to our investors. It's one of the best parts of what we do as operators.

Despite rising interest rates, the housing market is showing signs of stabilization and multifamily assets' performance continue to remain profitable. Freddie Mac's Multifamily Outlook for 2023 states " the economy and market stabilize, the relative strength of the multifamily sector will again become evident, certainly in the middle to longer term. And in the shorter term, indicators suggest that the multifamily market is expected to see healthy growth by the end of 2023." That's great news for multifamily investors! Read the full report HERE

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