Welcome to this month's edition of our Multifamily Financing Updates! In this edition, we'll provide a recap of important takeaways from multifamily conferences, including the NMHC and MBA, along with recent transaction summaries.
- The majority of outlooks were optimistic, but pessimism is still lingering. It seems that 2024 will see an improvement in overall transaction volume, but it will be challenging finding deals that meet credit criteria. This suggests that while there may be increased activity in the market, the quality and suitability of available deals could pose hurdles for some lenders.
- A wave of bridge-to-bridge requests appears to be coming in a big way.
- Borrowers, particularly those with private equity capital, are currently holding significant dry powder and appear eager to deploy this capital throughout 2024.
- Supply is expected to taper off by the end of 2025 and into 2026/2027.
- Debt markets show overall optimism compared to the previous year, with tightening CMBS/agency spreads.
- The prevailing belief that the first half of this year will see a sluggish pace in terms of deals starting to sell, but activity will likely pick up in the second half of the year. However, the one wildcard that could influence market dynamics is the election. There's speculation on whether buyers and sellers will wait until after the election to transact, as uncertainty may lead some to exercise patience.?
- Class-A Mid-Rise, Refinance, New Construction
- TCO / 10% Leased
- Good Location, Strong Market, Financially Strong Sponsor
- Proceeds: $28,500,000 / $1,350,000 Interest Reserve
- 80% LTC / 65% As-Stabilized LTV
- 8.0% As-Stabilized DY
- 24 Months, Two 6-month Extension Options
- SOFR + 400bps
- Prepay: 6 Months Minimum Interest
