(2022 projected origination volume and preferences) RomspenVolume: $350M-$450MWill fund $445M total this year, $267M funded YTD and $178M in the pipeline; $8M-$50M loans for entitled land, infrastructure and land servicing deals; rates typically 10%-12%, 2% lender fee; up to 60%-65% LTV; recourse/guarantees frequently required; primary and secondary urban markets with regional populations of around one More
Regional and local banks will be aggressive for multifamily deals, although watch for them to start requesting a depository relationship. Look for banks to provide lower pricing and higher proceeds in order to compete.
Properties in the Southeast will see lots of bank dollars, as those markets are still hot. As for the rest of the U.S., banks will start targeting affordable deals.
While many hurdles have come our way since the beginning of the year, the rise in rates has caused the biggest frenzy in commercial real estate lending and equity. The Fed announced its second consecutive 0.75% increase in July, its fourth bump this year. Many lenders, especially major banks such as Wells Fargo and Bank More
CMBS lenders will have a tougher time getting money out the door going forward. The total CMBS origination for 2022 will most likely be less than originally expected. With CMBS bond spreads widening, CMBS pricing has not been competitive with banks and other lenders. This has resulted in less volume across the board. Deals that More
Self-storage space has remained an attractive investment as housing markets continue to experience tight conditions, according to Marcus & Millichap’s third quarter Self-Storage National Report. The self-storage sector started second quarter 2022 in a strong position, having increased rental demand during the most challenging period of the pandemic. Currently, more than half of the millennial More
(2022 projected origination volume and preferences) Morgan StanleyVolume: $9BOriginated $6B so far this year; $5M-$1B+ loans for office, multifamily, MHC, self-storage, industrial, retail, hotels; up to 75% LTV; five- to 10-year terms; interest only available depending on the leverage and asset; global markets Wells FargoVolume: $8BOriginated $6.25B so far this year; $1M+ loans for office, retail, industrial, More
Monument Capital Management bought Talus, a 192-unit multifamily community in Plymouth, Minn., just west of Minneapolis. The purchase price was not disclosed. The property is the first acquisition for MCM’s newly launched Monument Opportunity Fund V. Ted Abramson, senior vice president of CBRE, represented the seller, Curtis Capital Group, in the transaction. Monument represented itself in More
Borrowers will see plenty of available bridge capital throughout the rest of the year and into 2023. However, terms will be a bit more conservative than seen in the past because of rising rates. Bridge lenders will use lower rent growth assumptions, higher CapEx costs, higher cap rates and higher debt yield assumptions going forward. More
Self-storage lending will be robust going into 2023. Keep an eye out for increasingly more lenders looking to enter the space due to competition in the other asset classes. There will be increased demand for self-storage since families will be downsizing and relocating as housing costs rise. Lenders like the fact that there has not More
While the market has started to slow slightly, multifamily fundamentals remain strong. According to Freddie Mac’s Mid-Year Multi Family Report, the Florida market and Southwest U.S. markets were expected to outperform the rest of the country in 2022. And despite tightening money regulations driven by persistent inflation and higher interest rates, at least two multimillion-dollar loans More
Aries Capital80 S.W. Eighth St., Suite 2000Miami, FL 33131(954) 806-9378Brandon Perdeck, Director, Capital Marketsbperdeck@ariescapital.com Aries Capital closed a $19.5M construction loan for Allure on Enterprise, a 130-unit ground-up multifamily development in Orange City, Fla. The bank loan is interest only for 18 months during construction and contains an option to be converted into a mini More
Rent control, long regarded by many in the homebuilding and multifamily industry as misguided government interference, is edging back into official conversations as interest rates – and rents – continue to rise. The nation is already facing a shortage of rental housing. Some 4.3 million new units are needed by 2035 to accommodate the nation’s More
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