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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

Smaller players fleeing from the stock market will keep demand high for smaller multifamily properties. Returns for assets under 50 units will be relatively conservative around 6% to 9.5% cap rates or IRRs ranging from 8% to 20%. Pricing is expected to remain fierce due to less institutional money dominating the space and lower asking More

Expect more developers to turn toward stretch senior loans, mezz debt and pref equity in 2019 as ground-up returns tighten further, and institutional equity providers sit on the sidelines. The debt markets are saturated, so developers can creatively finance projects with stretch senior construction loans and minimize the amount of sponsor equity required. Multifamily fundamentals 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