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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

Small-balance multifamily lending will be robust in 2019.  There is plenty of capital chasing deals, which will lead lenders to become more aggressive.  More lenders will enter the space, and underwriting standards will loosen.  Demand for small-balance multifamily lending has increased considerably over the past few years and is expected to see continued growth in More

There will be plenty of capital available for both stabilized and value-add office assets, as increased opportunities to finance office deals will result in additional lenders entering the space.  Borrowers will see 60% to 75% leverage.  Loans with maximum leverage will be priced in the 4.75% to 5.5% range.  Stabilized properties with five- to 10-year More

CMBS lenders will be competing for market share this year.  Watch for them to pick up riskier transactions as concerns about the economy will lead to more conservative life company and bank lending.  There has been some consolidation in the total number of conduit lenders as many firms have exited the space.  Expect Wells Fargo, More

Hotel financing will be readily available in 2019, although borrowers will see higher rates and stricter underwriting standards.  Hoteliers will need to obtain more equity and/or subordinate debt than years past as leverage levels drop.  Leverage will max at 65% to 70% for the most favorable permanent deals.  Hotel construction loans will be in the More

Borrowers will see plenty of available bank financing in 2019, especially for perm and bridge deals.  Major players such as Chase, BofA and Wells Fargo will be aggressively trying to grab a piece of the nearly $1T of debt maturing over the next three years.  U.S. Bank, Bank OZK, CapitalSource and Centennial Bank will pick More

Lenders will tread lightly with retail loans next year, but strong sponsors with quality assets in favorable locations and dominant tenants will see attractive financing terms, particularly at moderate leverage levels.  Expect lenders to be more interested in retail next year if sales continue on a healthy upward trend.  Borrowers will see higher DSC ratios More

The multifamily construction lending market will be more competitive as non-bank lenders such as debt funds, mortgage REITs, pension funds, etc., have entered the space in their search for yield.  This has resulted in terms that are more favorable for borrowers including more leverage, lower pricing and limited covenants.  However, concerns over rising construction costs More

Count on life company lenders to dip their toes into new programs, property types and markets in 2019.  Next year will be another competitive one with sporadic deal flow and aggressive competition for any deals with cash-flow potential.  There will also be tougher competition from non-institutional lenders.  Many life companies will provide different buckets of More

The bridge lending space will be flushed with capital and new players are expected to come in left and right.  Bridge lending will continue to grow as non-bank sources of capital rush to fill the funding gap created by banking regulations and increasingly conservative bank underwriting.  Expect the bridge market to be highly competitive throughout More