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    Lenders are moving back toward SFR/BTR deals

    Look for more competition and increased flexibility for single-family rental (SFR) and build-to-rent (BTR) deals going forward. Expect overall deal volume to ramp up later this year into a strong 2025. Next year should be robust as the Federal Reserve will have begun cutting short-term rates and there will not be any election uncertainty. Rates could even start coming down as early as next month. Lenders will become less selective given the amount of dry powder raised that still needs to be deployed. More

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    C-PACE will pick up the pace next year

    Count on 2025 to be a record year for C-PACE financing. There will be increased demand, especially because of the disruption in the marketplace, as C-PACE can help fill the gap left behind by senior lenders. This can be used to fund new construction developments, substantial rehabilitation projects and to recapitalize recently completed projects. More More

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    Land lending will pick up by the end of the year as rates drop

    Keep an eye out for land lending to increase by year’s end as rates decline. More lenders — especially debt funds — will be entering the market with the new year and new allocations. Banks should slowly start to re-enter the space as well. Land lending should grow around 20% in 2025. Acquisition-to-development bridge loans will be the easiest to get done going forward. Demand drivers will be key. More

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    Hoteliers will see more available capital in late 2024

    There will be an increase in hotel transaction volume during the second half of 2024 and into 2025. With treasuries dipping well below 4%, all-in rates are back in the mid- to high 6% range for hotels. As long as treasuries continue to stabilize — lowering the overall cost of debt — more deals will pencil. There could be even more restrictions on the bank side due to increased regulations already set to roll out. Count on that void to be partially filled by debt fund, private money and CMBS lenders. Keep an eye out for an increase in alternative hotel lending sources in the next year, many of which are very competitive and flexible. This is due to the transition away from office loans and certain types of retail deals into hotel lending as a lot of banks were light on hotel exposure and are rethinking allocations. More

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