Financing The New Kids On The Block: Co-Living, Cannabis And Workforce Housing

As 2019 draws to a close, investor interest is growing in several emerging assets, including co-living, workforce housing and cannabis tenants. Matt Wurtzebach, senior vice president in the Commercial Finance Group at national real estate services firm Draper and Kramer, Incorporated, shared his thoughts with Midwest Real Estate News about what he’s seeing from the front lines, including lender appetite across these emerging segments of the multifamily market as well as special challenges associated with financing cannabis real estate. How do prospective lenders view co-living deals? Wurtzebach: Co-living is a practical solution for price-conscious middle-income earners in their 20s and early 30s who want to live in top-tier locations with modern amenities, but lack the budget for a conventional apartment. In a co-living community, where rents are by the bed rather than the unit and often include furniture, utilities, cable, internet and other services, total monthly expenses can be 30-50 percent less than the cost of renting a traditional studio in a similar building. We are seeing increased appetite for this asset type among bank and debt-fund lenders, and expect more permanent lenders to enter the space as additional transaction and operating data becomes readily available. Click to read more at