Life Just Ain’t Fairfield: Apartment Giant Goes BK
The bankruptcy story for Fairfield Residential highlights several issues troubling housing, both single-family for sale and multi-family for sale and for rent:
- land value deflation continues, and continues to trigger covenants, which will perpetuate distress among CRE lenders
- S-F foreclosures are becoming a formidable shadow market competitor to for-rent apartment managers
- private companies’ access to capital remains illogically constrained despite publics’ ability to raise both debt and equity in the public capital markets
- more apaprtment company bankruptcies are likely, especially as downward pressure on rents increases and vacancies increase up to the 8% watermark.
December 13, 2009 | Filed Under Financial Crisis, MultiFamily
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