April 13, 2018
For multifamily, favorable demographics and other positive factors such as low supply continue to underpin the market. That’s the view of Will Oehler, regional sales manager, commercial term lending with JP Morgan Chase’s Chase Commercial Bank. Oehler will be offering a lender’s perspective during the “Boroughs On Fire: The Development Boom Outside Manhattan” panel at Connect New York, set for April 17 at Brookfield Place. His colleague, Kurt Stuart, head of the Northeast, Commercial Term Lending, has also prepared an article, “Millennials, Techies and the Brooklyn Multifamily Boom,” on the JP Morgan Chase website.
Connect Media sat down with Oehler to set the stage prior to next Tuesday’s event. Here’s what he had to tell us.
Q: At JPMorgan Chase, what’s your view of the current lending environment, and how are you preparing your clients?
A: The market has been on an uptrend. We’re seeing the environment shift, but it hasn’t stopped multifamily activity, which is benefiting from external factors like limited supply, as well as strong demand and relatively low vacancies. We’re helping our clients capitalize their growth in Net Operating Income, which they then put back into their buildings and build wealth over time.
My team and I are on the ground offering our clients specialized local expertise and solutions that deliver optionality and provide speed and certainty in any cycle for long-term success. We’re presenting our customers with unique product functionality, like Chase retention, which allows borrowers to refinance without penalty. Additionally, we’re leveraging technology to constantly improve upon the client experience. Our focus is on best in class service, speed and certainty of execution.
Q: What factors are driving the activity you’re seeing in the outer boroughs of Manhattan, and which areas are experiencing the most growth?
A: The activity we’re seeing is primarily refinance driven, and it’s consistent across the outer boroughs. In the South of Bronx, we’re seeing a lot of activity from our clients, primarily in the workforce style housing asset class. Brooklyn and Queens also continue to see consistent growth, and we’re optimistic about the healthy inventory of potential renters there. The owners we’re working with are consistently improving their buildings and bringing quality housing to the market.
Q: What are some of the reasons that these markets and projects represent a strong opportunity as a lender?
A: It has a lot to do with the macro characteristics of the market. We’re seeing a limited supply of multifamily properties, high barrier to entry and consistent surrounding land use in the outer boroughs. We’re primarily active in submarkets that tend to be stable over time. We’re operating in a vibrant economy, and there’s no shortage of renters. We’re also working with the best owners and operators in New York, who know the market in and out and are providing clean and safe housing. As a result, we’re seeing a limited cash flow volatility over time, which should keep us well-positioned through the cycle.
Q: How are you working with local owners and operators with multiple financial needs?
A: Beyond Commercial Term Lending, JPMorgan Chase’s presence in the market offers businesses a full suite of banking solutions—whether it’s lending to multifamily apartment owners, working with our Real Estate Banking team to offer subscription lines and treasury services, working with our private banking experts, or supporting local communities through affordable housing, neighborhood stabilization and transformative projects. The team has specialized boots on the ground at every stage of our client’s business cycle and throughout the changing market environment.
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