The dynamic duo of tamped down vacancies and negative absorption are signs of the stabilization of the U.S. multifamily sector. What’s more, these trends are expected to stay on course this year. By comparison, in Q1 2023, there was an uptick of 30 basis points quarter-over-quarter in the overall multifamily vacancy rate. It fell short of the pace of the 70-basis-point jump in Q4 2022 or the spike of 90 basis points in Q2 2022. More
As the rollercoaster year 2022 came to an end, many investors approached 2023 with hesitation due to high list prices, uncertain cap and interest rates, and inflation driving up operating costs. Market conditions have not been ideal, both for buyers and sellers. In fact, Tyler Bynum, vice president of multifamily investment sales at Worldwide Commercial, More
Lenders are still targeting multifamily deals, especially in markets with high barriers for new development. This will continue as long as high residential mortgage rates continue to force people to stay in rental housing versus buying a home. Multifamily lending will be more about sponsorship and location than seen in the past few years. More
(2023 projected origination volume and preferences) Axos Bank Volume: $2B $500K+ loans for high-end SFRs and one- to four-unit properties; investment properties only; 70% leverage; 3%-3.30% over AMERIBOR 30T or SOFR rates; nationwide First Bridge Lending Volume: $450M Funded $100M so far this year; $500K-$10M loans for owner-occupied bridge, rentals, flips; 65% LTV; 9.5% rates; More
Count on the total commercial real estate lending and borrowing to fall to $654B in 2023, which is a 20% drop from the $816B total in 2022, according to an updated baseline forecast recently released by the Mortgage Bankers Association. More
Colliers 1717 McKinney Ave., Suite 900 Dallas, TX 75202 Shawn Givens, Vice Chairman (214) 217-4868 shawn.givens@colliers.com Colliers closed a $3.25M loan for a Walgreens in Georgia, as well as a $5.25M loan for a multifamily property in Bloomington, Ind. The firm also closed a $1.58M loan for a multitenant retail property in Allen, Texas. Draper More
This credit tenant lease (CTL) single-tenant deal is a Walgreens that was built in 1996 and encompasses 16,187 s.f. located on Constitution Avenue in Colorado Springs. The main hurdle of this deal was that the borrower had to execute a 1031 exchange acquisition. More
Life companies will be some of the most active players for the next few months, as many banks continue to stay on the sidelines and the CMBS market remains tough because of high pricing. Watch for life companies to be pickier on what deals they will choose going forward based on their perceived risk. More
29th Street Capital (29SC) acquired Dwell Apartment Homes, a 193-unit property located in Scottsdale. The property is the firm’s 20th multifamily acquisition in the greater Phoenix metropolitan area. Haven Residential, 29SC’s property management company, will oversee management and leasing. More
(2023 projected origination volume and preferences) Greystone Volume: $3.5B-$4B ~$766M closed and signed up so far this year; Healthcare bridge: $10M-$250M+ loans; up to 80% LTV; SOFR+ low 400 to high 500 basis point rates; 24- to 36-month terms; negotiable recourse; nationwide; Multifamily bridge: $10M-$100M loans; 65%-75% LTV; SOFR+ 300-400 basis point rates; non-recourse; two- More
The senior housing segment is gearing up to face a tough second half of 2023, with the lending environment serving as one of the roughest pain points for the asset class and new development all but non-existent. Dekel Capital expects the general fundamentals of the market to improve, as the segment’s labor market begins to More
Watch for life companies to be some of the most active players for the next few months. Turmoil in the banking market has led to a pickup of life company lending. Even with this increase in activity, most life company lenders themselves expect overall volumes to be down. More
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