Sara Havlena

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

While capital will be available in the retail sector, lenders will be extremely cautious. The pandemic has forced many lenders to leave the retail space altogether, and those that remain will be more conservative with higher pricing and leverage. Some lenders will want to wait at least another three to six months before re-entering the More

All lender types strive to compete for industrial deals and look for them to provide cheaper pricing in order to win business.  Lenders are hungry for this product and will underwrite as aggressively as their internal policies permit.  Industrial is expected to come out of the pandemic stronger, as it has accelerated the shift away More

While capital will be available in the retail sector, lenders will be extremely cautious.  The pandemic has forced many lenders to leave the retail space altogether, and those that remain will be more conservative with higher pricing and leverage.  Some lenders will want to wait at least another three to six months before re-entering the More

JV and pref equity investors are starting to tip-toe back into the market after putting things on pause the for last few months.  Equity providers have capital they need to deploy but they do not want to be the first to close a deal.  Expect more investors to re-enter the game once a few transactions More

Look for a surge in multifamily construction lending throughout the third and fourth quarter.  Multifamily projects in the best locations with strong sponsors will see available capital, although with more conservative occupancy and rent growth underwriting.  Projects are taking longer to get through the entitlement and planning process and there are concerns about the availability More

There will be more demand for land loans as many lenders exit the space.  Borrowers will see lower leverage, higher pricing and more recourse requirements.  Look for active lenders to price and underwrite risk as if they will step into the sponsor role upon default.  Count on debt funds, private money and hard money lenders More

The pandemic has increased opportunities for active bridge lenders since many players are out of the market.  An abundance of capital still needs to be deployed in the bridge space, but some lenders are holding back until the third quarter or longer.  Many bridge lenders are in asset mode because of existing hotel and retail More

Multifamily continues to be the top choice for lenders as property performance has been stronger than expected. There has also not been much turnover since residents are staying put and many are working from home. So far April, May and June collections seem promising. All eyes will be on August, September and October rents, as More

Self-storage has risen to the top as one of the most attractive asset classes for lending.  While lenders have tightened their lending parameters overall, they will be bullish on self storage.  Count on new lenders to enter the space as they move away from retail and hotel loans.  Self storage works well for social distancing More

CMBS lenders are starting to quote deals once again.  Larger CMBS lenders that have their own balance sheets and major financial institutions that are not reliant on other capital providers will initially lead the pack.  Expect Wells Fargo, BofA, Morgan Stanley, Citi, JP Morgan Chase, Goldman Sachs, Deutsche Bank, Barclays, Starwood Mortgage Capital, Natixis Real More

Watch for regional and local banks to be active lenders, while the major money-center banks remain in the dugout.  Bank lending will be slow and gradually increase through Q3 and Q4 as the economy revives.  Count on banks to be more selective with property type, location and borrowers.  Underwriting will change drastically with less aggressive More