A weekend topic starting with Kiplinger. "Debt pricing looms as the largest multifamily market mover in the coming year. Inexpensive debt capital and plenty of equity seeking placement in the multifamily market have supported rising property values in recent years. But when the cost of borrowing goes up, cap rates must move correspondingly as investments don’t make financial sense until sale prices come down. It’s a pricing fundamental that has always existed, but one that sellers never want to concede. In fact, the seller’s market has run so long that owners now faced with downward pricing adjustments don’t want to budge."

"The bottom line, with that inherent price pressure in mind, 2019 is looking more like a buyer’s market. Attractive multifamily acquisitions will be captured by buyers who secure assets that are 'right priced' to account for rising interest rates."

"Rising rents paired with high occupancies produced income growth that generally outpaced operating expense increases. But new supply in many markets has now caught up with or surpassed demand."

"The potential multifamily supply and demand imbalance is still playing out across the country. 'We’re seeing a lot of rental markets peaking and coming down,' says Neil Schimmel, President and CEO of Investors Management Group."

From McKnights Senior Living. "For years, the investment returns on senior housing have been a bright spot in the real estate market. Understandably, that has attracted more capital, particularly from private equity and institutional investors. In turn, capital has become plentiful and relatively easy-to-acquire, attracting owner/operators who see this as an opportunity to build new, state-of-the-art specialized facilities."

"A growing danger exists, however. Construction rates seemingly are surpassing occupancy and absorption rates, creating a risky environment for owner/operators."

"We don’t think senior housing is in a bubble. But the industry must be diligent not to allow the sector to become overbuilt, and it must be realistic about the risks inherent in the senior housing market. Owner / operators should seek out lenders with a deep expertise that can serve as true advisers in the development and success of new senior living communities."

"The current economic expansion is the second longest on record, and in another year, it will become the longest. It’s unlikely to end before hitting that milestone, but it will end someday— a fact that some lenders as well as owner/operator seem at risk of forgetting."

The Dallas Morning News. "Texas' largest nursing home provider, Senior Care Centers, has filed for bankruptcy in a serious setback for the Dallas-based company. Senior Care Centers, which operates more than 100 facilities in Texas, filed for reorganization in U.S. bankruptcy court for the Northern District of Texas on Tuesday, reporting more than $100 million in debt. It's at least the second troubled nursing care giant in the Dallas area to file for bankruptcy since late last year."

"In a news release, Senior Care Centers said high rents and 'burdensome' debts dragged it down. The company pledged that patient care will not suffer due to its financial woes, and that it will 'continue providing comprehensive care and support to its nearly 10,000 patients and residents.'"

"Senior Care Centers said in its bankruptcy filing that revenue was going down — from fewer clients and reduced insurance reimbursements — while expenses were rising."

"The company said it tried various strategies to improve its financial situation, including selling assets and asking landlords to reduce rents. The efforts failed, forcing the company to restructure by filing for bankruptcy."

The Journal Sentinel in Wisconsin. "With all the apartments, hotels, office buildings and other new developments built throughout downtown Milwaukee, you could almost forget that its northern edge was long marred by a string of empty lots until just a few years ago."

"While demand has remained strong for apartments throughout downtown and the east side, there are also a lot of new units under construction. That has some developers and investors wondering if the high-end apartment market is becoming overbuilt."

"A spokesman for Kirkland, Washington-based Weidner Apartment Homes, which now operates The Avenir, said the firm doesn't have plans to build the block's other parcels."

The Real Deal on Florida. "When Miami broker David Landau opened a letter at his Brickell on the River North condo late last month, it had an alarming message to residents. A new construction project would be rising fast, and their view of the water would soon be gone."

"Landau, who has lived in the complex at 31 Southeast 5th Street for more than eight years, was angry. He knew Related had development plans there, but had heard they were far in the future. The letter, he believes, was an attempt by the One Sotheby’s agent to win business by trying to get some of the hundreds of residents to enter into a 'panic sale,' convincing them to unload their condos quickly in order to get the fast commission."

"Condo developers in Miami have struggled to attract buyers as South American currencies have weakened and a recent report showed the greater downtown area has a six-plus year supply of luxury condo inventory. Some developers are holding off plans to build until the next market cycle or are self-financing projects."

"That environment can sometimes prompt aggressive tactics, like what appears to be the case with the Brickell flier, said Josh Migdal, a partner with the Miami law firm Mark Migdal & Hayden. Those moves, he said, 'are the symptom of a housing market that has significantly slowed down and shows how Realtors are trying to obtain new listings at reduced prices.'"

"Sarah Elles Boggs, a real estate agent with Douglas Elliman, said people may see more of these aggressive tactics given the condo market slowdown in Miami. 'It makes sense that this would start happening because people get desperate when they get hungry,' she said."