?? Her apartment complex caught fire. Here's what she learned.

???Good morning, Best Ever Community! TPG says it has seen a “significant increase” in investor activity as it gears up to unleash $14B in dry powder toward top-shelf CRE assets. Could investor sentiment finally be on the rise?

In this week’s newsletter, an apartment complex catches fire, department stores are done, and national rents rise.

Let's ride!

?? NO-FLUFF NEWS: CRE HEADLINES

?? Fannie, Freddie Tighten Up: Fannie Mae and Freddie Mac are implementing stricter rules for CRE lenders and brokers to combat rising commercial mortgage fraud, including requirements for independent financial verification and property valuations, which may slow deal activity as the industry adapts to the more rigorous standards.

???Back in the Game: Large apartment owners are buying again, as strong demand and a construction slowdown have driven up transaction volume to $23 billion in Q2, a 40% increase from the $16.4 billion recorded in Q1, though still below historical averages.

???Multifamily Fraud Scheme: Three real estate investors pleaded guilty to defrauding lenders of over $119 million in a multifamily mortgage fraud scheme, submitting falsified documents to obtain loans for two properties in Ohio and Michigan.

?? TOP STORY: WHAT REALLY HAPPENS AFTER AN APARTMENT FIRE

An apartment fire is a nightmare scenario for any investor. Rachael Jones , principal at Clover Capital Group, purchased a 29-unit multifamily building in Columbia, South Carolina, for $1.65 million in June 2023.

It has been a challenging deal for a host of reasons. The 1970s property had aluminum wiring, required a Phase 2 environmental analysis, and was purchased under financial distress with just a 60% economic occupancy. Then, in January, the property caught fire, costing Rachael and her partners eight units. Seven months later, they’re still going through the insurance process to get the eight units rebuilt, all while continuing to operate and stabilize the rest of the complex, which is still occupied.

Rachael joined us?on the Best Ever Show this week to discuss the property, the fire, and how she dealt with the aftermath, highlighting a few key lessons she learned through the process...