The coronavirus outbreak continued to cause uncertainty for the multifamily industry in June, as the number of confirmed cases rose to more than 2.5 million by the end of the month. More than two months into the pandemic, landlords in Boston and New York have filed legal challenges to eviction moratoriums put into place as a result of the health crisis. Additionally, landlords kept a close eye on tenants and their ability to afford their June rents. As some businesses slowly resumed activity and 2.5 million jobs gained the previous month, a J Turner Research survey found that 84.3 percent of residents expected to pay last month’s rent by June 10. We quickly learned that rental payments reached 80.8 percent as of June 6, and then increased to 89 percent by June 13.
Senior housing took center stage in June as well, as seniors are more vulnerable to the virus and property owners face millions in lost revenue in addition to new costs associated with the pandemic. According to data released by the National Investment Center for Seniors Housing & Care, stabilized occupancy rates at the nation’s assisted living facilities fell to 85.2 percent in May, the lowest level on record. However, JLL’s Brian Chandler, Bryan Lockard and Zach Bowyer argue that better days lie ahead, as owners and operators prepare for a period of rebuilding following the challenges brought on by COVID-19.
Construction activity increased in June, with a series of developments kicking off in various parts of the country, including those where construction wasn’t classified as an essential business during lockdowns. In Manhattan, Lendlease and L+M Development Partners have closed on a $250 million construction loan from Barings for 100 Claremont Ave. LaTerra Development has joined forces with QuadReal Property Group to invest up to $250 million in equity for the development and operation of apartment properties in Southern California. In Los Angeles, BRIDGE Housing has opened Cedar Grove at Jordan Downs, the first phase of a $1 billion redevelopment project of Jordan Downs. And in Queens, construction is nearing completion on Bevel LIC, a 202-unit apartment building.
Here are MHN’s must-reads for last month: