Commercial real estate brokerage Newmark created a single-family rental group to pursue investment sales, joint-venture equity placement and debt and structured finance in the SFR space, which has seen once red-hot investor interest cool as interest rates have increased over the last year.
“With Newmark’s significant presence in the multifamily and alternative real estate sectors and a growing institutional interest in the SFR space, formalizing this practice was a logical next step as we continue to enhance our full-service capital markets offerings to our clients,” said Vice Chairman Chad Lavender, who will lead the group with Vice Chairman Ryan Maconachy.
The SFR group will operate as part of Newmark’s Multifamily Capital Markets group, which is led by Chief Strategy Officer, President and Head of Multifamily Capital Markets Jeff Day. Directors Leland Manning and Josh Francis will also lead the firm’s efforts in the space.
The SFR sector has gained significant momentum over the past several years, and institutions have allocated over $100 billion to the asset type, Newmark said in a press release.
“With increased rental housing demand, renters are seeking more space and the privacy of a detached home without the demands of a mortgage, especially considering interest rate increases,” Manning said. “This, in combination with the rise in SFR-earmarked capital, underscores the expectation that SFR supply will increase in coming years.”