**Dealmakers and Lenders Weigh in on Phoenix Multifamily Trends at Connect Event**
At a recent Connect Phoenix Multifamily Build-to-Rent (BTR) and Single-Family Rental (SFR) event held at the Westin Kierland Resort & Spa in Scottsdale, industry leaders gathered to discuss current challenges and future expectations for the multifamily market in Phoenix.
On the construction front, George Maravilla of Tower Capital highlighted the impact of financial uncertainty on project feasibility. “Lenders don’t like uncertainty,” Maravilla stated. “Last week, loan-to-cost was at 70%, and now it’s 65%, which means developers are scrambling to find more equity. That results in fewer construction starts.”
Echoing that sentiment, Derek Smigiel of JLL pointed out that market volatility is stalling the construction pipeline. “There is no construction equity, so there are no starts,” he said, emphasizing the need for capital stability to reignite development.
When it comes to property transactions, Maravilla noted that today’s market is not conducive to voluntary sales. “The only developers selling today are doing so because they have to,” he said. “There are plenty of buyers—just no sellers.”
Despite the current challenges, optimism remains. Tyler Bruggman of ABI shared a more positive outlook for the market. “We have a very positive outlook with inflation down,” he said. “We hope interest rates will come down. We’ve hit the bottom of the slow period and are coming back up.”
The event provided vital insights for multifamily developers, investors, and lenders navigating an evolving financial and economic landscape—highlighting both the concerns and opportunities present in the Phoenix multifamily market.
