Sara Havlena

Construction borrowers/developers will see plenty of capital from diverse sources as lenders seek to grab better returns.  Banks have pulled back on leverage, but non-banks and debt funds have backfilled the market.  Non-bank lenders will continue to snag market share from traditional lenders, including an increase in life company executions on larger projects and family More

Count on ample mezz capital to be deployed this year, especially as leverage levels drop and mezzanine loans strengthen capital stacks.  There will plenty of demand as sponsors want more leverage and are willing to pay a premium to push higher up the capital stack.  Mezz loans will make more sense to borrowers than equity More

Watch for a plethora of competition in the bridge lending space leading to an overflow of capital that needs to be deployed.  Anticipate more investors turning toward bridge lending as debt makes more sense than equity at this point in the cycle.  This continued increase in competition means better pricing and more flexibility/creativity with terms.  More

Watch for lenders to become more open-minded about retail lending this year.  The market is coming out of an era when people were extremely worried about online retail sales.  Many have come to the realization that there is still a need for brick-and-motor stores. Therefore, lenders will be more inclined to provide capital than the More

Count on banks to be extremely active during the first half of the year and expand their boxes in order to compete.  Banks are under pressure to grow their balance sheets by 5% to 6% this year.  They will want to re-enter the construction lending space and strive to win deals back from debt funds.  More

Count on aggressive underwriting for multifamily loans during the first half of the year as lenders compete for clients.  There is a ton of capital available in the market, especially as Fannie Mae and Freddie Mac start the year swinging.  This increased competition is forcing lenders to reach outside of their usual boxes in order More

Expect accessible hotel capital from banks, conduits, life companies, bridge lenders and debt funds this year.  However, borrowers will see stricter underwriting.  The current low-rate environment and the fact that lenders are all trying to get money out the door will lead to plenty of available capital during the first two quarters of the year.  More

Look for robust demand for CMBS loans this year as borrowers strive to lock in 10-year terms whilerates remain low.  Borrowers will be attracted to the longer interest-only periods, lower leverage and favorable pricing offered by the conduits.  Although, new rating agency guidelines that went into effectthis month will keep leverage levels in check as More

Borrowers will see plenty of liquidity in the construction lending market from banks, debt funds and life companies this year.  The debt funds and private money lenders will be more aggressive, while banks are expected to originate around the same construction volume as 2019.  Some banks have been over-regulated out of the construction lending business, More

Land lending will become more challenging this year.  Many lenders are pulling back from the land space as the economy starts to turn and development slows.  However, there will be a slew of bridge lenders entering the land lending game.  This is a byproduct of the massive competition in the cash-flowing bridge space, which has More

Life company lenders will begin the New Year with empty buckets, which will lead to a busy Q1 and more aggressive underwriting.  The last quarter of 2019 saw life companies push back on production and become more conservative with underwriting as they met their allocations for the year.  Look for them to offer new programs, More

Count on self storage to be a favored asset class next year, as capital will be robust.  Lenders view this as a strong property type targeted after multifamily and industrial.  They are attracted to its high value and recession-proof nature.  Even with added competition from new supply, same-store sales continue to grow.  Baby boomers are More