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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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    Deal of the Week: The Pitch in Nashville, Tennessee

    This is the first Peachtree Group C-PACE deal in Tennessee and was backed by a strong senior lender. The property, called The Pitch, is strategically located in an opportunity zone — presenting substantial potential for growth and development. The four-story, 75,000-s.f. office building is situated between Nashville’s CBD and the Wedgewood-Houston district. The office boasts an accessible location, just a short 15-minute drive from Nashville International Airport and within walking distance of numerous restaurants and bars. More

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    Multifamily bridge lending volumes will increase

    Count on a continued slow improvement in the multifamily bridge market through 2025. This is based on higher investment sales activity and what appears to be increased engagement by sellers and buyers. Loan spreads for multifamily bridge will remain flat to slightly tighter as market conditions continue to improve. There will be plenty of demand for bridge loans going forward. Watch for more volume and spread compression throughout the rest of the year. Look for the debt funds to be active moving forward, as mid-size transactions pick up in the next 12 months. More

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    Construction lending will pick up steam in Q4

    Look for construction lending to increase during the fourth quarter as many funds get new allocations. Construction lending will be strong going forward as there is a need for housing and lenders feel safe with floating-rate debt and not constrained by fixed-rate deals where they can be caught on the wrong side of interest rates. The banks are holding back because of their limited liquidity, which leaves a large vacuum for the private lenders and debt funds to step in. Banks are seeking deals with experienced sponsors. They will prefer low leverage and the location must be strong with good density. More

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