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Developers will see plenty of capital come their way, however banks will be more cautious on LTC, while private money and debt fund lenders will push leverage higher.  There will be a strong appetite for construction loans with proven sponsors, especially multifamily projects.  Lenders will become more conservative with underwriting, while sponsors will be heavily More

NRP Group expects 2020 to be explosive for new starts. It already has 20 projects closing in 2020 with another handful pending committee review that are anticipated to boost expectations to 24 or 25 developments. Of the 20 confirmed projects, eight are market rate, three are workforce housing and nine are affordable, for a combined More

Count on more developers to scour the suburbs for deals, play with unit sizes and even look at single-family rental (SFR) models. These tweaks to their strategies stem from a battle against costs as developers attempt to keep their construction pipelines flowing. Merchant builders especially need to keep pipelines full, even if deals aren’t the More

Office lending will be brisk going into 2020 with banks, life companies and CMBS lenders all funding deals.  There will be continued demand for office as long as the economy is strong and rents remain steady.  Vacancy rates are low, with some markets enjoying single-digits.  Rental rates continue to increase, though slightly slower than in More

Hoteliers will see available capital for construction, especially from debt fund lenders that are filling the void left behind by banks.  Non-recourse capital will be available from non-bank lenders at higher rates.   Projects in strong locations with multiple demand generators will be desired.  Borrowers need to show a story that ties together the location, More

Expect cap rates for student housing to see some widening. Sellers are still trading at low cap rates after the last two years had a tidal wave of capital flood the space, driving prices up. The student housing industry, as a whole, should continue to benefit from strong investor interest and attractive investment trends such More

Both Freddie Mac and Fannie Mae’s lending cap has grown to $100B until the end of 2020. This has given the multifamily industry a second wind. The FHFA closed green loan loopholes, but the greater focus on affordability will be a boon for value-add buyers. Spreads have started to drop because each agency has to More

JRK Property Holdings stays disciplined with plans to acquire $600M of properties in need of renovations by the end of 2019. The company closed a fund in June and raised $800M to target core-plus ’90s or newer product in the top 25 markets. The firm is also deploying a value-add fund in the same markets More