Denver Real Estate Attorney Jeff Friedman in The Real Deal - Coronavirus Cascade
March 21, 2020
The Real Deal
How Covid-19 disruption could impact multifamily landlords, lenders
Ratings agencies eye shortfall in April rent, debt service payments, with smaller mom-and-pop building owners hit hardest
With industries like lodging, retail and beyond experiencing mass layoffs, millions of Americans face the prospect of no longer being able to afford rent.
And while local, state and federal authorities have introduced eviction moratoriums across the country in response to the coronavirus crisis, where does that leave landlords with mortgages on their properties?
In a typical down real estate market, there is a standard “daisy-chain, domino-effect reaction,” said Jeff Friedman of law firm Hall Estill’s real estate group in statement. “Apartment renters lose their jobs or take significant pay cuts and can no longer afford to pay their rent; owners collect less rent and cannot make their debt service payments to their lenders; and lenders are not collecting enough on the debt service, with their loans now on distressed real estate assets.” READ MORE HERE