Latest Finance Trends

Look for plenty of available capital for single-family rentals (SFR) and build-for-rent (BFR) projects, as builders continue to shift toward these models in the face of declining home sales and while interest rates remain high. The market will remain robust, and projections show plenty of interested renters. Expensive debt will make development more difficult going forward. Debt service will be higher since rates have risen and rent growth is slowing. More

Mezz loans will be in high demand as first mortgage lenders are providing lower leverage levels and owners/operators are having a harder time raising equity. There is a wall of maturities coming next year and mezz will help fill the gap left behind by bridge lenders. Count on a strong need for mezz to help fit those gap financing needs, especially for refinancing and construction capital. Many traditional mezz lenders are pulling back their last dollar exposure, so keep an eye out for lenders requiring more equity going forward. More

Student housing will continue to be a favored asset class. The sector performed better than expected throughout the pandemic and is proving to be recession-proof. More lenders, including additional life insurance companies, will consider offering loans on student housing assets going forward. Five to 10 years ago, many lenders considered student housing a niche asset class. More

Count on more appetite for pref equity versus JV equity, based on today’s attainable yields. JV equity has slowed and is a tighter market because many investors have decided pref equity is more attractive. High, short-term rates are creating negative leverage on value-add or construction transactions; overall rate uncertainty and the increasing desire to wait for distress has caused many investors to pivot. More

While hotel construction continues to be tough to finance, certain deals will be able to grab lender dollars. In unstable markets, hotel construction generally is one of the first buckets to see lending dry up. It will take some time after the market stabilizes and interest rates move down for lenders to fully jump back into construction lending. More

Banks will be cautious as the market remains uncertain. They will continue to build up liquidity reserves through borrower deposits and many will be sitting on the sidelines. Over the past year, the banks have really dialed back — something that will most likely continue over the next year. Bank lending will return to more More

After being hit particularly hard by COVID-19, this sector appears poised for some well-deserved growth. A possible recession. Rising interest rates. A continuing labor shortage. These are just some of the challenges facing the senior housing market. But most experts see the industry’s fundamentals continuing to improve. That’s because that nasty miniscule spiked ball we all More

Once the black sheep of the real estate market, golf courses are rapidly coming back into favor with investors. The beleaguered asset class has posted record numbers in the last few years, both in terms of per-course earnings and sale prices. Coming in just as hot is the marina business, which has also posted some More

Self-storage borrowers will see plenty of available capital over the next few months as lenders view this as a viable asset class. The lack of recent new construction in most markets has led to increased demand and the sector is showing favorable demographics. Self storage is quickly becoming one of the top asset classes. Many More

Senior housing lending should return to more normal levels in 2024. Demographics remain favorable with many forecasts indicating a shortage of supply in the long term, leading to a wave of demand. Fundamentals in the operations of assets are slowly improving. A lot of states have stepped up with improved Medicaid rates, and in many More