Sara Havlena

After taking a pause at the start of the pandemic, CMBS lenders have returned to the market and will be active through the end of the year and into 2021.  The demand for CMBS bonds has remained strong, which has allowed CMBS lenders to offer attractive rates.  Borrowers will see lower leverage and more reserves More

Lenders perceive multifamily as the strongest and safest real estate asset class going forward.  The agency lenders have been extremely aggressive on pricing with no changes in sight.  Count on banks, life companies and CMBS lenders to become more aggressive on terms, specifically debt service coverage ratios and cash-out restrictions, in order to compete with More

When it comes to financing, retail is a story of the haves and the have-nots.  Expect a barbell shaped market with high-quality opportunities on one side and challenged properties on the other side.  Grocery-anchored centers in strong markets are doing well and even thriving, while vintage mom-and-pop centers without essential retail are having a tough More

Condominium borrowers will see available capital from banks, debt funds, bridge and private money lenders.  Watch for condo lending to be more location and borrower specific than in the past.  Lenders will be extremely conservative and require additional borrower equity.  Borrowers will see 5% to 10% lower leverage and an increased focus on pre-sales.  Lenders More

Bridge lending is picking back up and should become even more abundant going into 2021.  Look for many bridge lenders who had been on the sidelines to return to the space, although seeking less risky deals with more conservative terms.  Plenty of opportunities await active bridge lenders, especially on higher quality properties in favorable locations More

Count on many lenders, especially the agencies and banks, to be active in the small-balance multifamily space going forward.  Small-balance properties will continue to be sought after as they include a big component of workforce housing, which is in high demand.  Lenders will especially target small properties with an affordability component.  Rates will remain low More

The life company lending market will be strong as these lenders look to put capital out and grab favorable yield in 2021.  Many banks, CMBS and debt funds have experienced disruptions in their pipelines and life companies will step in to cherry pick the best deals next year.  Production for 2020 is expected to be More

Most conventional lenders are currently on hold for hotels until they can see stabilization in occupancy and rate performance.  Over the next twelve months, liquidity will return to the space.  The key will be the return of the CMBS market, which should start after the first of the year.  Lenders will shy away from construction More

Construction lenders are slowly re-entering the market, especially for projects located in growing or high-demand cities with experienced development teams.  Borrowers will see lower leverage and tighter underwriting standards than before the pandemic.  Rates will be about the same as they were pre-pandemic; the concern will be around proceeds and property values.  Most banks continue More

Lenders will start to trickle back into the office lending market over the next few months and into 2021, especially as competition increases for multifamily and industrial loans.  Watch for a major shift toward suburban office deals, while CBD office space in major urban markets such as New York City will be challenging for the More

Count on increased demand and interest in multifamily bridge loans as lenders seek ways to provide capital in the space.  As long as the agencies are providing take-out financing, the multifamily bridge market will continue to flourish.  Bridge lenders are looking for higher quality assets, stronger sponsors and lower leverage than seen pre-pandemic.  Anticipate lenders More

Banks are slowing dipping their toes back into the market and rumor has it that Wells Fargo, BofA and other major money center banks are looking for opportunities once again.  Expect all size banks to seek new relationship lending again in 2021, while many will focus on existing clients with strong track records throughout the More