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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

Multifamily development will be highly sought after as demand across the country continues to increase and evolve.  Construction debt and equity will be readily available, although very market-specific.  Lenders are also becoming more conservative with underwriting and looking closer at sponsor experience and financial wherewithal.  As multifamily supply continues to grow, lenders will become more More

Lenders are cautiously optimistic about hotel lending, and there will be an abundance of capital available for the right sponsor and strong properties.  Hoteliers will see 60% to 70% leverage.  Deals with subordinated debt will reach 85% to 90%.  Fixed rates will be in the 3.5% to 4.5% range, while floating rates will be 6% 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, supply/demand, More

Industrial is the darling of the commercial real estate world, and borrowers will see lots of competition as lenders compete for the few deals that hit the market.  There will be plenty of debt and equity available for all types of deals including new construction and bridge.  The rise of e-commerce and changes in how More

There will be growth in bank lending as balance sheets remain healthy with very low default rates in commercial real estate.  Banks will have more opportunities throughout the rest of the year as life companies and agencies both become full on allocations.  However, given the cyclical nature of real estate, expect caution around development and More

Count on smaller multifamily companies to ease off the gas for value-add by looking in multifamily-related areas such as development and student/senior housing. While buyers fight for value-add properties, many firms will spend their time and capital on different projects. Development, on the other hand, is less crowded and offers a better return for deals More

More and more equity players are aiming to place money in the multifamily space. Investors who need to fulfill their 2019 quota will be scrambling until the end of the year to get money out. The caveat is they are keeping their downside in mind, so watch for more pref equity terms with JV players More

Value-add competition will push investors out of their comfort zones in order to compete. This means more players will be on the lookout for off-market deals and/or paying all cash in order to close quickly. Speed of execution is ultimately winning the day. Firms have large subscription lines of credit to buy properties with all More

Look for banks, debt fund and private money lenders to tentatively finance condo deals.  Lending volume will be down because of fewer transactions overall in the condo market.  The lateness of the cycle will lead to lenders being very location- and developer-specific and pickier about which deals they will finance.  Leverage will drop to around More

There will be plenty of capital available for retail loans, but lenders may be more selective going forward.  After dealing with the fallout of online sales, the retail-lending environment seems to have stabilized to its new normal over the past 12 to 18 months.  Count on CMBS lenders to be the most active as some More