Boxwood Introduces Small Cap Multifamily Price Indices

New Metrics Help Lenders and Investors Track Price Trends for Smaller Rental Housing Properties


Stamford, Conn., May 02, 2016 (GLOBE NEWSWIRE) -- Boxwood Means, LLC, a leading provider of collateral valuations and data analytics in the small commercial real estate property and loan markets, announced expanded sector coverage with its Small Multifamily Price Index. The firm’s national Small Multifamily Price Index and accompanying 48 metropolitan-level indices enable lenders and investors for the first time to conveniently track price trends for smaller rental housing properties in U.S. markets.  Smaller multifamily assets are typically defined as apartment buildings of 5-plus units with a value below $5 million.

Boxwood’s February update of its national Small Multifamily Price Index indicated that the big run-up in small multifamily prices over the last couple of years has abated.  Though in aggregate these smaller multifamily assets generated a healthy 8.8% annual return, the yield is down substantially from the double-digit annualized increases during the first half of 2015. Nevertheless, some areas of the country continue to outperform this year with robust year-over-year gains in San Antonio (15.4%) Portland (14.9%), Dallas (14.7%), and West Palm Beach (14.0%).

“We’ve introduced our Small Multifamily Price Index at a pivotal moment in the CRE market’s expansion,” said Randy Fuchs, a Boxwood principal and co-founder.  “Small balance multifamily loan originations have been skyrocketing but, at the same time, there is heightened industry concern and scrutiny about the overall direction and risk of the CRE markets."  Fuchs added, “Though we think the small cap CRE markets still have legs, our indices will help market participants keep tabs on varying metro-level price movements as the multifamily and commercial markets further mature.” 

Boxwood’s new multifamily price indices, along with the firm’s well-established Small Commercial Price Indices for 128 metro areas, are updated on a monthly basis and include historical time series dating to 2006.  More information about Boxwood’s indices and subscription options is available on the product description page on the company's SmallBalance.com web site.

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Boxwood Means, LLC is a Stamford, CT-based real estate valuations and data analytics firm supporting the commercial property investment and risk management needs of a diverse base of commercial mortgage lenders, and investment and services firms.  Boxwood owns and operates SmallBalance.com, its client-centered web site for obtaining nationwide valuation reports, analytics and market research on the small commercial property and loan markets.



            

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