Latest Finance Trends

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

Capital providers will look more favorably at self-storage this year. Count on additional lenders trickling into the space, as the sector outperforms some of the more traditional property types. Lenders like the fact that self-storage has shown to be recession-proof, that most properties are cash flowing and that LTVs have not been constrained. Lenders expect More

Although lending will be a bit slower, look for plenty of available capital in the manufactured housing community (MHC) space this year. It will be a fluid market with the agencies, life companies, banks, CMBS, bridge and private money lenders all considering deals. However, underwriting will be more challenging, and borrowers will need to bring More

Manufactured housing community (MHC) lending is slowing because of increased interest rates and existing cap rates remaining low. However, the space continues to offer one of the most affordable housing options available. Financing will be strong as demand for affordable housing continues to grow, although underwriting criteria will tighten up with many lenders requiring experienced More

Office financing will be difficult this year and even deals with the strongest sponsors in favorable locations will be tough. Many lenders and borrowers expected office to bounce back, which has not happened yet, and it is affecting the lending environment. More

Total multifamily loan volume is projected to decline this year; however, multifamily bridge lending will be robust for well-capitalized sponsors and those owning properties that have significant equity. There is expected to be a sizable volume of loan maturities on land acquisition, A&D and construction financings, which should keep bridge activity strong despite the recent More