Investor-driven lenders are continuing to be aggressive in a period of rising interest rates, helping multifamily investors top off their capital stacks.

Lenders tend to be cautious on such projects and most investors might be looking for returns that are higher than office building prices right now would support.

Fortress Investment Group and Metro Loft Management are nearing a deal to acquire a stake in the 30-story Financial District building, with plans to redevelop it into housing, according to people familiar with the matter.

Firms are still investing in co-living units. But the sector has gone through a transformation in the past few years.

The measure, known as Proposition ULA, boosts the one-time transfer tax to 4 percent for property deals between $5 million and $10 million, and 5.5 percent for transactions of $10 million and above. The current rate on all sales is 0.45 percent.

The firm is exploring acquisitions of Manhattan office buildings that are facing growing vacancies or debt burdens. The effort could potentially expand to other areas of the US, such as Washington, D.C., Boston and the West Coast.

Developers are still building plenty of units in New York City, but the rental market remains tight with thousands of rent stabilized units held off the market.

Voters in the midterms in a handful of states enacted new rent stabilization measures. What does that mean for multifamily investors?