Freddie Mac Multifamily has named Peter Lillestolen VP, Production & Sales of Targeted Affordable Housing (TAH), where he will oversee the TAH retail business, Low-Income Housing Tax Credit (LIHTC) Equity, Structured Transactions for both Conventional and TAH, as well as Senior Housing.
“Peter is a strong, innovative leader, ready to meet the challenges of Multifamily’s mission-critical businesses,” said Steve Johnson, Freddie Mac’s SVP of Multifamily Production & Sales. “Peter has a proven ability to make strategic, forward-looking decisions and to meet and anticipate the evolving needs of the affordable market. We are grateful for his steady leadership and his drive and passion for Multifamily.”
In his 12 years with Freddie Mac, Lillestolen has built a depth and breadth of experience across the Multifamily Division, starting as an analyst in Capital Markets, and later, in various leadership roles on the production team.
Lillestolen most recently led the LIHTC Equity and Seniors Housing businesses for Freddie Mac, while serving as a co-lead for TAH. His leadership was instrumental in helping the GSE exceed its affordable housing goals in 2022, both in the core retail business and low-income housing areas.
Lillestolen holds a Master of Professional Studies in Real Estate Finance from Georgetown University, and a Master of Science in Finance from Johns Hopkins University. He received a bachelor’s degree in finance from James Madison University.
As multifamily rental demand slowly returned in the first half of 2023, Freddie Mac recently projected in its Multifamily 2023 Midyear Outlook that the market will continue to stabilize, but see below-average growth throughout the rest of the year. Macroeconomic headwinds, including the elevated 10-Year Treasury rate, will lead to a contraction in multifamily origination volume to $370 billion. However, the economy is maintaining positive momentum, propelled by a strong labor market helping to maintain multifamily fundamentals.
“Midway through the year, we are starting to see a return to more normal patterns although performance is a bit weaker,” said Sara Hoffmann, Director of Multifamily Research at Freddie Mac. “We expect multifamily fundamentals to perform slightly below long-term averages this year, which will feel particularly slow compared with the pandemic boom years, and even the years leading up to it. But positive demand and modest rent growth indicate the multifamily market is stabilizing.”
Freddie Mac explains that the multifamily construction pipeline remains robust, with approximately one million units currently under construction, with a vast majority of those units expected to complete at the top-end of the market.
The markets expected to experience the highest gross income growth in 2023 are concentrated in Florida, and parts of the West Coast, as well as the Mid-South, while the weakest performing markets are forecast to be a mix of small and large markets, primarily in the eastern half of the county, many of which have high levels of new supply expected.