Latest Finance Trends

The single-family rental (SFR) and build-for-rent (BFR) space continues to be very liquid as lenders seek alternative lending channels to deploy capital into a relatively safe space. Lenders are well-capitalized but are being extremely cautious and scrutinizing deals more heavily than in the past. More

Single-family rental (SFR) and build-for-rent (BFR) properties have both been super-hot the last few years. The pandemic especially pushed demand for these property types as people left the big cities and high-rise apartments in search of their own space. Expect plenty of available capital, albeit at more conservative terms. However, recent hurdles in the market have moved some lenders to the sidelines.  More

JV equity and pref equity will still be available but will heavily favor industrial and residential transactions. Some investors are on the sidelines given the uncertainty with cap rates, interest rates and inflation. Therefore, those that are active are more disciplined and conservative. Pref equity will be available from the usual suspects such as the debt funds, mortgage REITs and private equity funds. More

Borrowers will see available bridge capital, although many previously active players are now on the sidelines. The illiquidity in the market, particularly amongst the banks, will continue to apply pressure to bridge lending. Credit funds/debt funds that truly rely on their banks for financing to support that business, which has dried up significantly over the past 12 months, along with a significant widening in the cost of borrowing within a very short period of time, has pulled some lenders out of the market. More

The last several weeks have been anything but boring in the lending world. The failures of SVB Bank and Signature Bank left many real estate borrowers wondering what exactly the future holds. UBS also took over rival bank Credit Suisse after it imploded during the recent banking crisis last month. Many feared a nationwide bank More

The recent bank failures put the market into a tailspin and left many borrowers wondering if bank lending would come to a complete halt. Despite the news, the smaller, mid-sized and regional banks have plenty of liquidity and are eager to lend. This will buoy the market as the major money-center banks sit on the sidelines. More

Despite market volatility, including rising rates, the threat of a recession and the recent bank failures, affordable housing is one sector that should still be sought after by capital sources. The agencies are expected to lead the charge and look for a push toward affordable properties with deeper rent and income discounting, which should make More

Affordable housing lending for construction and rehabilitation deals using low-income housing tax credits will be one area that remains less impacted by the volatility in the overall capital markets. The recent bank failures demonstrate the importance of the agency lending programs, therefore, watch for developers and borrowers to look more favorably at agency debt as More

Watch for capitalization rates to continue expanding for at least the next few months, according to a recent CBRE survey. The survey notes that cap rates could start to peak later this year and should decrease in 2024 as the end of the Federal Reserve’s rate-hiking cycle is anticipated. Capitalization rates —also known as cap More

Hotel financing will be available — especially for hotels with strong operating histories — but will be challenging for the balance of 2023. Lenders are eager to lend on hotels but have decided to dial back leverage due to uncertain pricing conditions. There will be plenty of fixed- and floating-rate financing, but indices have resulted More

There will be available capital for construction projects this year, although count on much tighter underwriting and more cautious lenders. Recent shockwaves in the banking market could also hamper available capital for construction going forward.   Construction lending will definitely see a slowdown compared to the last few years. With the increase in rates, it’s harder More

The construction lending market will continue to be limited by concerns over take-out financing. However, lenders are eager to put out construction dollars, although borrowers will see tighter terms. Value is more difficult to underwrite, so expect construction lenders to be far more focused on cash flow and coverage constraints. Construction lending will be all More