Small Balance Multifamily on Track for Record Year
Download your free copy of the Summer 2016 Small Balance Multifamily Investment Trends Report.
Produced by Chandan Economics and ALEX Chatter, the Summer report found that the Q1 2016 origination volume of new multifamily loans with original balances between $1 million and $5 million increased 8.4 percent from 2015’s volume on an annualized basis. Activity in 2015 was the highest on record in our post-financial crisis tracking of the market, meaning that 2016 is poised to be another banner year for the SBL multifamily market.
The report also found that after several quarters of compression, cap rates for multifamily properties — both large and small — have begun to plateau in the 5.5% to 6.0% range.
Interested in learning more? The full report goes on to examine detailed trends in cap rate spreads between small balance and all multifamily properties; DSCRs; debt per dollar of NOI; and LTVs.