Sara Havlena
There will be plenty of capital available for new construction projects this year. Lenders will especially target residential construction deals as demand for housing soars in many markets. Borrowers and developers will see higher loan-to-cost (LTC) and slightly lower rates as lenders aim to compete for the best deals. Look for a push throughout the year toward secondary and lower cost of living markets where there is space to build.
2022 projected lending volume and preferences
Madison Realty Capital
2022 Volume: $3.5B
$20M-$500M+ loans for multifamily, condos, hotels, build-for-rent SFRs, build-for-sale SFRs, industrial, retail and office; up to 80% LTC; rates from 4.5%-9% depending on leverage, sub-65% LTC deals will see 4%-6.5% rates, 1-2 point fees; 12- to 36-month terms with extension options; non recourse; all major markets
Romspen
2022 Volume: $1.4B
Will fund $1B this year; $10M-$200M loans for all properties including industrial, multifamily, mixed-use, commercial, entitled land, lot development loans; low 9% to high 12% rates, 2-3 point fees; six- to 36-month terms with extension options; up to 80% LTC; non recourse available; all major markets with populations over one million, select smaller tertiary cities and towns
Associated Bank
2022 Volume: $1.24B
$10M+ loans for all the main property types; 75% leverage, markets in the bank’s historic footprint
Parkview Financial
2022 Volume: $1.2B
$5M-$200M loans for multifamily, industrial, office, retail, residential, mixed-use; up to 75% LTC; recourse and non-recourse options available; up to 36-month terms; rates starting at 8.49%, 1 point fees; no prepayment penalty; nationwide
Dwight Capital
2022 Volume: $1B
$10M-$200M loans for garden-style and midrise multifamily in areas with strong barriers to entry; 85% LTC; 1.176x DSC; non recourse; 3.10% rates; 40-year term/amortization plus up to a two-year construction period; focused on secondary markets such as Phoenix, Austin, Orlando, Fla.
HALL Structured Finance
2022 Volume: $750M
$20M-$100M loans for multifamily and hotel construction; up to 80% LTC for multifamily, up to 75% LTC for hotels; 30-day Libor+ 7%+ rates; three-year terms with up to two one-year extensions; non recourse with completion guarantees
3650 REIT
2022 Volume: $500M-$750M
$25M-$250M loans for all property types; up to 85% LTC; 7.5%+ rates; non recourse; three- to five-years terms; customary carve-outs, completion, carry, environmental guarantees; domestic markets
ORIX
2022 Volume: $500M
$15M-$50M loans primarily for multifamily and self storage; up to 75% LTC; Libor-based rates; three-year terms with two one-year extension options; non recourse except for completion guarantees and carve-outs; all primary and secondary markets
Pangea Mortgage Capital
2022 Volume: $500M
$5M-$50M loans for industrial, mixed-use and condos; 80% LTC; two-year terms; non recourse; 8% rates; top 20 metros
