Small Balance Multifamily Investment Snapshot — Q2 2019

Following soft lending figures to begin 2019, lower-than-expected long-term interest rates have ignited a frenzy of refinancing activity. Annualized figures through Q2 2019 totaled $58.5 billion in lending volume, representing a 7.9% gain from 2018.

National average cap rates for multifamily properties backed by small balance loans dropped to their lowest post-crisis level following a steep drop in Treasury yields. In the second quarter of 2019, small multifamily cap rates dropped to 5.8%, a decline of 9 basis points (bps) from the preceding quarter and down 11 bps from a year earlier.

Here’s a quick look at the small balance multifamily finance and investment benchmarks for Q2 2019.

For more insights on the small balance multifamily market, view our recent webinars on the topic and read the full Q2 2019 Small Balance Multifamily Investment Trends Report.