A weekend topic starting with RE Business Online. "The multifamily sector is like the Energizer Bunny, says Jamie Woodwell, vice president of commercial and multifamily research for the Mortgage Bankers Association (MBA). Although 600,000 units are currently under construction nationally — maintaining an elevated level of building activity that is the highest since the mid-1970s — consumer demand remains strong. 'It just keeps going and going and going, he said."

"Mortgage banker originations of multifamily mortgages are forecast to rise 1 percent this year to $264 billion, with total multifamily lending at $315 billion. MBA expects these originations totals to continue through 2020. 'We’re up to $3.3 trillion of commercial and multifamily debt outstanding,' Woodwell informed the audience. 'Banks are holding the largest share.'"

From Bisnow. "Sonnenblick Development Chairman Bob Sonnenblick has had enough with the high cost of doing business in Los Angeles, Orange County and California in general. Even with Gov. Gavin Newsom wanting to build new housing and state Treasurer Fiona Ma wanting to keep businesses here, Sonnenblick wasn't sure there was any way to keep his business in California."

"'I don’t think there is an answer,' he said. 'The only thing that is going to keep developers here is if the price of land and price of construction comes down and that’s only going to happen if we go into a recession. I don’t think the governor or any of the state officials can control that.'"

From Multi-Housing News. "There has been some cooling of price and income expectations, but buyers are still enthusiastically grabbing up San Francisco and Silicon Valley multifamily. Levin Johnston's Robert Johnson and Adam Levin shed light on this trend and others."

"Levin: Investors are still quite confident in the multifamily market here, and investment levels remain strong. That said, buyers recognize that this expansion has been extremely long, and they are more realistic about the pace of price growth now than they were a few years ago."

"Levin: While demand for multifamily is solid and there are compelling reasons to invest in this sector here, there’s still a considerable delta between sellers’ expectations and what buyers are willing to pay. We have been encouraging sellers to be more realistic in their pricing and to take heed of current cap rates."

The Express News in Texas. "Nearly 3,000 housing units are currently under construction in and around downtown San Antonio, according to figures provided by the city. Another 1,600 are in the planning stage. Sluggish job growth in the San Antonio region last year has some analysts worried that multifamily apartment development could slow further. 'That’s what I’m most concerned with now,' said Bruce McClenny, president of Houston-based ApartmentData."

The Times Free Press in Tennessee. "A new report shows a mixed bag over how well some of the array of downtown Chattanooga apartment projects are doing, with a couple less than half leased. The Market City Center apartments are only about a third leased after well more than a year on the market."

"Another apartment complex, 1400 Chestnut near Chestnut and West Main streets that opened late last summer, is gradually leasing up its 200 units with fewer than 40 percent filled, the report showed. What's needed, said developer John Healy, is for Chattanooga economic developers to do a better job of recruiting companies to locate downtown."

"'That's where the rubber hits the road,' Healy said. 'We've got to do a better job recruiting companies to come here.'"

From Tuscaloosa News in Alabama. "A student-based housing development has been approved by the Tuscaloosa City Council with fewer bedrooms than originally planned. Some, though, contend that Tuscaloosa already is oversaturated with student-based housing. This is what led the City Council to impose a temporary moratorium on any vote that would allow the development of any multi-family complex of 200 bedrooms or more."

From GlobeSt. "Student housing and multifamily are both considered recession-resistant asset classes. The reasoning is simple: even in a down market, people still need a place to live and students still go to college. While multifamily has been favored, student housing may actually perform better in a down cycle, according to Frederick W. Pierce, IV, of Pierce Education Properties."

"An inverted yield curve isn’t the only reason that Pierce is predicting a recession. Like other experts, he is concerned about the length of the cycle and rising interesting rates. 'The fact that we are in the longest period of expansion since the end of World War II, which must come to an end at some point, the negative impact that recent increases in interest rates have had in many sectors, the degree of volatility in the equity markets and the unpredictable political climate all point towards the eminency of a recession,' he says."

The Real Deal on New York. "The Rabsky Group sold one of its large Williamsburg multifamily buildings for $130 million to Denver-based landlord UDR, which is buying at a time when several large apartment REITs are retreating from the New York market. The purchase price of $132.2 million works out to more than $700,000 per unit."

"The Colorado-based real estate investment trust, which has a market capitalization of $12.3 billion, made the purchase at time when competitors such as Equity Residential and AvalonBay Communities are limiting their exposure to the New York City market over concerns about a glut of new apartments."

From Multi Housing Pro on Florida. "CGI Strategies has acquired Sola at Celebration, a vacant 306-unit luxury multifamily community in Celebration, FL. The property was purchased from Southstar Capital Group in a transaction valued at $43 million."

"Developed by Hines in 2015, Sola was sold to Southstar at the end of 2016. Shortly after, construction defects were discovered which resulted in the property being vacated by order of the Osceola Building Department."

"Los Angeles-based CGI, a real estate investment firm founded in 2013 to focus on strategically located multifamily and mixed-use development as well as the acquisition of special situation real estate, plans to correct the deficiencies and stabilize the asset, according to CEO Gidi Cohen."

"'I’m sure there were many who looked at Sola and were turned away by the size and scope of the corrections that needed to be made,' said Cohen. 'Having successfully dealt with projects like this in the past, at our cost basis we were confident in our ability to remedy the problems and return a true Class A resort style project to a market that exhibits exceptionally strong multifamily fundamentals.'"