Havlena is the editor-in-chief of Crittenden Real Estate magazine and The Crittenden Report: Real Estate Financing, Retail Tenants Report and the Multifamily Report and their respective websites. She has been an editor with Crittenden since 2007 and worked on a variety of real estate publications during her time at the company covering a wide range of topics from restaurant expansion to real estate developers. She has been the lead reporter and editor of Crittenden’s flagship publication, The Crittenden Report, since 2011. She has a degree in Print Journalism from Cal State Fullerton, and resides in Orange County, Calif.
Land deals have always been tough to finance, but borrowers will see even stricter terms as we enter the new year. Rising rates and the decline in overall liquidity are pushing lenders that had traditionally been in the space to the sidelines. Bank lenders have completely pulled out of the sector. Debt fund lenders — More
With fewer lenders in the bridge lending space and rates continuing to rise, 2023 will likely be a slow year for bridge lending, with sponsors turning to other products. Expect more conservative underwriting and a major shift toward cash-flowing deals. Exit caps are hurting bridge lending. Lenders will have to focus on markets where values More
Bernard Financial Group20700 Civic Center Drive, Suite 240Southfield, MI 48076Joshua Bernard, Principal(248) 799-9200jbernard@bernardfinancial.com Bernard Financial secured a $5.2M perm loan for a 213-unit multifamily property in Sterling Heights, Mich. Bernard also closed a $6.6M perm loan for a 227-unit multifamily property in Brownstown Township, Mich., and $3.7M for a 192-unit multifamily property in Greenville, S.C. More
(2023 projected origination volume and preferences) StonehillVolume:$1B-$2BWill fund $1B total this year, ~$600M funded YTD; $10M-$100M loans for limited- and select-service premium-branded hotels; 70% leverage; one- to five-year terms; non-recourse unless the deal requires it, nationwide with a focus on Sunbelt states Access Point FinancialVolume:$1.5BWill fund $850M total this year, $500M funded YTD; $5M-$75M loans More
Multifamily borrowers will continue to see aggressive lending, although with much stricter terms. There has been a slowdown in both acquisition and refinance loans, a trend that is anticipated to continue for the first part of 2023. Expect more conservative underwriting for the next 12 to 18 months, especially increased caution when underwriting the exit. More
(2022 projected origination volume and preferences) RomspenVolume: $350M-$450MWill fund $445M total this year, $267M funded YTD and $178M in the pipeline; $8M-$50M loans for entitled land, infrastructure and land servicing deals; rates typically 10%-12%, 2% lender fee; up to 60%-65% LTV; recourse/guarantees frequently required; primary and secondary urban markets with regional populations of around one More
Regional and local banks will be aggressive for multifamily deals, although watch for them to start requesting a depository relationship. Look for banks to provide lower pricing and higher proceeds in order to compete.
Properties in the Southeast will see lots of bank dollars, as those markets are still hot. As for the rest of the U.S., banks will start targeting affordable deals.
While many hurdles have come our way since the beginning of the year, the rise in rates has caused the biggest frenzy in commercial real estate lending and equity. The Fed announced its second consecutive 0.75% increase in July, its fourth bump this year. Many lenders, especially major banks such as Wells Fargo and Bank More
CMBS lenders will have a tougher time getting money out the door going forward. The total CMBS origination for 2022 will most likely be less than originally expected. With CMBS bond spreads widening, CMBS pricing has not been competitive with banks and other lenders. This has resulted in less volume across the board. Deals that More
(2022 projected origination volume and preferences) Morgan StanleyVolume: $9BOriginated $6B so far this year; $5M-$1B+ loans for office, multifamily, MHC, self-storage, industrial, retail, hotels; up to 75% LTV; five- to 10-year terms; interest only available depending on the leverage and asset; global markets Wells FargoVolume: $8BOriginated $6.25B so far this year; $1M+ loans for office, retail, industrial, More
Borrowers will see plenty of available bridge capital throughout the rest of the year and into 2023. However, terms will be a bit more conservative than seen in the past because of rising rates. Bridge lenders will use lower rent growth assumptions, higher CapEx costs, higher cap rates and higher debt yield assumptions going forward. More
Self-storage lending will be robust going into 2023. Keep an eye out for increasingly more lenders looking to enter the space due to competition in the other asset classes. There will be increased demand for self-storage since families will be downsizing and relocating as housing costs rise. Lenders like the fact that there has not More
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