HOW BIG ISSMALL CAP MULTIFAMILY?

Small balance multifamily loans are typically between $1 million and $5 million. Chandan Economics

defines small-cap properties as 5 to 19 units, mid-cap properties as 20 to 50 units, and large-cap properties

as larger than 50 units. Both small-cap and mid-cap properties can fall into the small balance spectrum.

Source: American Community Survey; Chandan Economics

More than half of all multifamily properties fall into the small-cap segment and more than one in ten of all U.S. households live in a rental property with between5 and 50 apartments.

Large-cap inventory grew by 18.0% over the 10-year period ending 2014, compared with 15.2% for medium-cap properties and just 8.5% for small-cap.

However, between 2012 and 2014, the number of apartments in small-cap properties accelerated, increasing by 4.6%, and outpacing development for mid-cap (2.0%) and large-cap (2.3%) properties.

Multifamily Housing Inventory

53%5-19 Units

20%20-49 Units

27%50+ Units

See the full report on ALEX Chatter here: www.arborloanexpress.com/chatter

Rental Apartment Inventory Growth: 2010 - 2014

5-19 Units

20-49 Units

50+ Units

2010-2012 2012-2014

0.0% 1.5% 3.0% 4.5% 6.0%