Fee Transparency Is The Future of Apartment Search

Friday, April 25, 2025

• Truth in renting: Multifamily operators are under growing pressure from regulators and renters to adopt full fee transparency, shifting the industry toward clear, all-in pricing.

• High low: The $227 million sale of 99 High Street signals a reset in Boston’s downtown office market, with steep discounts reflecting new pricing norms and broader implications for the city’s tax base.

• Cash flow: Flow, Adam Neumann’s apartment startup, raised $100 million at a $2.5 billion valuation amid unclear expansion plans and a quiet exit from a prior apartment deal now owned by Cortland.

• Multifamily outlook webinar: Learn how data and tech are helping multifamily leaders adapt to tighter margins and rising renter demands in 2025. Sign up

• Investment tech webinar: Discover how leading firms are using AI and data analytics to make smarter, faster commercial real estate investment decisions in this insight-packed webinar. Sign up

Perspectives

Fee Transparency Is The Future of Apartment Search

The Small Business Administration was established in 1953 to promote small business growth through financing, advocacy, training, and emergency relief. Its primary tool is the 7(a) loan program, which guarantees a portion of qualifying loans, allowing lenders to offer more favorable terms. The agency also provides tools to streamline loan origination and servicing for lenders. This week, the Trump administration introduced changes to the SBA loan application requirements. Since small businesses are the primary tenants in many retail real estate locations, these changes could soon affect retail leasing.

Several key changes were made to the SBA loan program—some expanding access and others adding restrictions. The most significant change is that borrowers must now verify their citizenship or permanent residency. While data is limited on how many foreign citizens apply for these loans, this requirement could reduce the number of eligible companies.

Another notable change aims to speed up the loan vetting process. Borrowers are no longer required to submit tax returns and may instead use CPA-reviewed financial statements. Additionally, franchise owners will no longer need to submit franchise documentation for review, as franchises will now be treated like any other business. For partial business sales involving an SBA loan, the transaction must now be structured as a stock purchase, and sellers must personally guarantee the loan for at least two years. Minority owners are also now required to sign personal guarantees to ensure repayment, even if business ownership changes over time.

The SBA loan program is vital to the country’s small businesses. Any adjustments to it will inevitably impact the retail real estate industry that depends on them.

Overheard

Boston Office Tower Sells for $100M Below Assessed Value

Boston-based real estate firm Synergy has finalized the $227 million purchase of the 32-story tower at 99 High Street, a deal widely seen as a key indicator for Boston's struggling downtown office market. The sale price reflects a 17% drop from what the previous owner, Nuveen, paid in 2005, and comes in nearly $100 million below the property’s assessed value. With 730,000 square feet and 78% occupancy, the building hosts major tenants such as AIG and Marsh McLennan. Analysts say the $311-per-square-foot rate reflects a new market norm for quality, non-new construction downtown office space.

This marks Synergy’s fourth major office acquisition since late 2023, each secured at steep discounts compared to prior valuations. The firm is taking advantage of falling property prices and a renewed, if cautious, interest from institutional investors in urban office assets. CEO Dave Greaney acknowledged the difficulty of securing financing in today’s market but noted growing confidence in the sector's long-term value. With Boston’s property taxes heavily reliant on commercial real estate, continued sales like this one could have broader fiscal implications for the city’s $4.8 billion budget.

Fast Take

Adam Neumann’s Flow Raises More Money

Adam Neumann has been able to raise another round of funding for his "lifestyle apartment brand" Flow. With this $100 million raise, the company is now valued at $2.5 billion and has the continued backing of influential VC firm a16z. The company hopes to be cash flow positive this year but there is little know about its expansion plans and the role of the company's office-sharing brand Workflow.

A day before the funding news came out, another article was published claiming that an affiliate company of Flow had sold its share in an apartment that it acquired in 2021. The complex is now owned by Cortland but neither Cortland or Flow agreed to comment on exactly why the building changed hands and what the terms of the deal were.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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