Philadelphia Investors — Important Market Update

[Quinton Brown]

Heads up for anyone doing deals in Philly:

There’s been a noticeable uptick in valuation-related fraud in a few Philadelphia submarkets, and it’s created a squeeze on liquidity. Because of that, many capital sources are temporarily stepping back from new originations in the city. In most cases, Philadelphia zip codes aren’t getting priced at all right now.

This looks like a temporary pause while the secondary market reassesses risk and recalibrates. Once liquidity normalizes, access to financing should open back up.

If you’ve got a deal in the pipeline or you’re trying to structure something new in Philly, feel free to drop a comment. Have you experienced any volatility recently.. This hasn't impacted all lenders.. so alternatives are available,. there are always ways to navigate short-term volatility. Interested to know what investors are experiencing versus our discussion in meetings with investors/lenders.