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    Life companies will be more appetite driven in 2024

    Life company lending will be in high demand for the rest of the year. Although, many LCs will soon run out of allocations for 2023, so some borrowers might have to wait until Q1 to get deals funded. Anticipate life companies to be the most competitive capital source next year, especially as banks reserve their dry powder for existing borrowers. Life company money will be the most attractive option for many borrowers due to their scale and flexibility of capital. More

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    Industrial remains the darling of CRE

    Industrial will continue to be in high demand from lenders and one of the preferred asset classes due to the positive fundamentals in the space. Competitive terms will be available for quality assets in gateway markets, operated by strong sponsors. However, look for higher rates and lower leverage. Movement in the underlying indices will impact all-in borrowing costs and total leverage. Most deals will also be debt service coverage ratio constrained. More

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    Deal of the Week: Tru by Hilton in Norco, Calif.

    The pandemic and initial supply chain issues made it difficult to reign in the cost of the project. The timing was also tough coming out of the pandemic and financing for hotels was tighter. This is a higher leverage deal where AVANA offered a construction loan that converted to an SBA 504 perm loan. The upper midscale property will have 109 keys. The borrower was getting into a new hotel segment relative to his portfolio. More

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    Single-family rentals and build-for-rent projects show favorable fundamentals

    Look for plenty of available capital for single-family rentals (SFR) and build-for-rent (BFR) projects, as builders continue to shift toward these models in the face of declining home sales and while interest rates remain high. The market will remain robust, and projections show plenty of interested renters. Expensive debt will make development more difficult going forward. Debt service will be higher since rates have risen and rent growth is slowing. More

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    Multifamily lending is down but not out

    Although there has been some cooling, multifamily borrowers will still see plenty of available lender dollars. Capital will be plentiful for permanent loans, while construction financing will likely remain tight in the short term. Elective refinances will be very limited, and the focus will be on trying to find permanent loan options to take out construction or interim financing. More

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