Sara Havlena

There will be no shortage of hotel construction capital, as 2019 allocations exceed 2018 across the board with a strong lender desire to place money.  Expect certain lenders to be more open to non-primary markets and independent properties in order to grab yield.  However, construction lending will be selective and focused on borrowers with strong More

Retail borrowers will have plenty of financing options this year, especially assets in strong locations and those with experienced sponsors.  There were fewer retail deals funded in the last 12 to 24 months, so quality retail assets will be on all lenders’ lists.  However, lenders will continue to be cautious and dig deeper into tenant More

Multifamily borrowers will see plenty of bank lending activity this year including big players such asJP Morgan Chase, Wells Fargo, U.S. Bank, KeyBank, Citi and BofA.  Also watch for Capital One, Citizens Bank, Union Bank, Investors Bank, TD Bank, Axos Bank, Spencer Savings Bank, Umpqua Bank, Luther Burbank Savings, Banner Bank, First Republic, First Foundation More

Count on an active life company lending market this year, as lenders have fresh buckets of available money.  With so much capital in the market for the best deals, spreads have been very low, and life companies will have to be more creative in underwriting.  Look for a push toward “bridge light” lending from life More

Debt fund and private money lenders will lead the charge toward condo loans this year, while banks continue to be active but cautious.  Condo lending overall will be slightly more difficult going forward.  Sale price assumptions will be flat or decreasing, due in part to the increase of interest rates on underlying mortgages.  Count on More

Small-balance multifamily lending will be robust in 2019.  There is plenty of capital chasing deals, which will lead lenders to become more aggressive.  More lenders will enter the space, and underwriting standards will loosen.  Demand for small-balance multifamily lending has increased considerably over the past few years and is expected to see continued growth in More

Construction lending will be healthy this year.  Lenders will turn toward development due to the factthat properties are trading for such high dollar amounts, while cap rates stay down.  Experienced,well-capitalized borrowers will be key.  As the interest rates creep up, watch for the equity requirement to also increase.  Borrowers will see 60% to 70% LTC More

There will be plenty of capital available for both stabilized and value-add office assets, as increased opportunities to finance office deals will result in additional lenders entering the space.  Borrowers will see 60% to 75% leverage.  Loans with maximum leverage will be priced in the 4.75% to 5.5% range.  Stabilized properties with five- to 10-year More

CMBS lenders will be competing for market share this year.  Watch for them to pick up riskier transactions as concerns about the economy will lead to more conservative life company and bank lending.  There has been some consolidation in the total number of conduit lenders as many firms have exited the space.  Expect Wells Fargo, More

Hotel financing will be readily available in 2019, although borrowers will see higher rates and stricter underwriting standards.  Hoteliers will need to obtain more equity and/or subordinate debt than years past as leverage levels drop.  Leverage will max at 65% to 70% for the most favorable permanent deals.  Hotel construction loans will be in the More

Borrowers will see plenty of available bank financing in 2019, especially for perm and bridge deals.  Major players such as Chase, BofA and Wells Fargo will be aggressively trying to grab a piece of the nearly $1T of debt maturing over the next three years.  U.S. Bank, Bank OZK, CapitalSource and Centennial Bank will pick More

Lenders will tread lightly with retail loans next year, but strong sponsors with quality assets in favorable locations and dominant tenants will see attractive financing terms, particularly at moderate leverage levels.  Expect lenders to be more interested in retail next year if sales continue on a healthy upward trend.  Borrowers will see higher DSC ratios More