Florida Market Update: March 4, 2025

Florida Market Update: March 4, 2025

Written by Ryan Maddaluna , Originator

With the midpoint of Q1 now behind us, investors have settled into the new political environment, gaining more confidence in the understanding of the playing field ahead. At the same time, the Federal Reserve has set the tone for where they intend to carry rates for the remainder of the year. This more defined economic outlook, along with the 10-year treasury dropping by over 30 basis points from the start of the year, has resulted in an influx of lending requests in recent weeks.

Now is the time to move if you have maturing debt approaching - Earlier this month, Largo Capital met with over 50 lenders at the MBA Conference in San Diego, the largest lending centric conference of the year. Throughout each meeting, it was heard repeatedly that lenders have increased their allocation for 2025. This is driven by the substantial volume of loans maturing throughout the year, creating the need for lenders to replace assets. This mass amount of capital being deployed into the debt market pushes lenders to become competitive as they battle to win deals. As a result of this, spreads have significantly compressed to some of the tightest seen in recent times.

Life Insurance Company lenders face a heavier pressure than most lenders to place funds each year as they must match the maturity liability of their policy holders. These Life Co. lenders have made it clear they will be providing the most competitive pricing and have now begun offering more flexible terms, with some offering 3-year debt options to align with Borrowers’ financing strategies to navigate this time of rate volatility. As a Mortgage Banking firm, Largo Capital provides correspondent access to 27-Life Insurance Company debt programs that cannot be reached by the public. Leveraging these relationships, Largo Capital has secured the most competitive terms for retail, multifamily, and industrial debt - all assets which these Life Companies seek to lend against.

Once lenders begin to deploy a significant portion of their 2025 allocation, pressure to compete aggressively will likely ease. If facing a maturity in the next 6-months, now is ideal timing to take advantage of the opportunity present in the market.