The volume of new multifamily loans with original balances from $1M to $5M declined to an annualized rate of $47.0B in the first half of 2018. However, activity picked up in the third quarter, bringing the annualized rate up to $49.2B.
The U.S. metros have seen a shift toward large multifamily lending over the past year, with investors showing a preference for non-gateway markets offering higher-yield opportunities. This new annual report will identify the U.S. markets poised for growth in large multifamily lending activity, and will analyze the differences in origination volume across top markets.
Reversing the trend of consolidation from the previous year, occupied small asset multifamily inventory expanded in 2017, according to new data from the U.S. Census Bureau 2017 American Community Survey (ACS).
FANNIE MAE DUS® MBS as Tax-Exempt Bond Collateral (M.TEB) – Fixed Rate Arbor’s MBS as Tax-Exempt Bond Collateral (M.TEB) – Fixed Rate issues MBS that can be used as collateral for either (i) existing fixed-rate bond refundings, or (ii) new fixed-rate bond issues in conjunction with 4% Low-Income Housing Tax Credits (LIHTC). Benefits Faster closings with our unique delegated model. Declining prepayment options or yield maintenance. Interest-only is available. Guaranteed direct pass-through of principal and interest is more attractive to bond buyers. Eligibility Multifamily Affordable Housing properties. Loans underwritten to Fannie Mae Guide Requirements for tax-exempt bonds. Refundings or new issues with in-place rehab. Immediate delivery or standby forward commitment. Loan Term 10-30 years. Amortization Up to 35 years. Maximum LTV 90% for 4% LIHTC properties with at least 90% of the units meeting affordability requirements. 85% for 4% LIHTC properties with fewer than 90% of the units meeting affordability requirements. 80% for refundings. Minimum DSCR 1.15x for 4% LIHTC properties with at least 90% of the units meeting affordability requirements 1.20x for 4% LIHTC properties with fewer than Read the full article…
Los Angeles has been a standout market for small balance multifamily investment throughout the current economic cycle. Cap rates have remained below national trends and investor confidence in the sector remains strong. Despite higher risk appetites among borrowers, lenders remain cautious as loan-to-value ratios (LTVs) have moderated. Read our 2018 Los Angeles Small Balance Multifamily Investment Trends Report for more insights on the region’s multifamily market.
Here’s a quick look at Los Angeles’ multifamily benchmarks for the third quarter of 2018. For more on the multifamily finance and investment opportunities in the L.A. market, view our recent webinar.
Los Angeles Remains a Top Destination for Small Balance Multifamily Investment The L.A. market for small balance multifamily has been a standout throughout the current economic expansion. Cap rates have remained below national trends for both the rest of the small balance market and the average set by all multifamily properties. Despite higher risk appetites among borrowers, lenders remain cautious as loan-to-value ratios (LTVs) have moderated. Looking ahead, a disciplined lending environment will reduce L.A. small balance multifamily’s sensitivity to any market corrections. Produced in conjunction with Chandan Economics and tailored for the small multifamily investors, this report will explore recent changes in: Cap Rates & Spreads LTVs Debt Yields
Single-family rentals (SFR) are anything but a passive investment. Much more goes into net operating income (NOI) or, more accurately, detracts from it than just gross rents. Investors must also consider rehab, taxes, concessions, vacancies, and a myriad of other expenses. And like any other investment, higher returns are generally associated with higher investment risk.
