Our Co-Founder and Managing Partner Tyler Chesser shared his analysis with Multifamily Dive on the Federal Reserve announcement this week that current interest rates would hold steady.

Tyler's take: with sticky inflation, elevated energy prices from the Iran conflict and a Fed chair on his way out the door, there was never cover to cut. The market knew it, and the 10-year Treasury, not the funds rate, is what’s actually moving multifamily capital costs.

For those underwriting Midwest multifamily right now, the message is the same as it’s been: don’t wait for a rate cut to do your job for you. Underwrite conservatively, mind your basis, and let the fundamentals carry the deal.

Read the full article here.