How Berkadia Stacks Up in the BFR World | John Burns Real Estate Consulting

How Berkadia Stacks Up in the BFR World



A Black Friday level of frenzy is currently taking place in the world of BFR financing. Listen in on the third episode of our three-part series on build-for-rent (BFR) where Joel Kirstein, Managing Director at Berkadia, breaks down the capital world’s obsession with the BFR space. Keep reading below for some of the episode’s key highlights.

BFR Concerns

  • Land and entitlement risk is Joel’s number one concern because it’s the critical choke point in the BFR development process.
  • Labor shortages are another concern. Almost every contractor is having a terrible time hiring skilled labor.

Oversupplied? Not yet.

  • Currently, the only thing oversupplied is capital interested in BFR. There aren’t enough deals to go around, and we’re nowhere near oversupplying BFR housing.
  • Long entitlement periods play a major role in preventing BFR oversupply.

A peak into the future

  • More conservative capital sources are starting to step into the BFR space.
  • Currently, BFR data is very fragmented. Aggregation of BFR data will be a game changer.
  • Mergers & Acquisitions and institutional owner market share growth are inevitable.


For a full transcript of this episode, click here.

 

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