With constantly changing market conditions, investors sometimes need access to capital with flexible terms to improve or secure an asset. Commercial bridge loans are a popular financing tool that provides borrowers with short-term capital for renovations and purchases. They are often the perfect first step in the door to the beginning of a long-term financial partnership.
Small Balance Lending Surges Through First Half of 2019
Small balance multifamily lending volume in the first half of 2019 totaled $58.5 billion on an annualized basis, representing a 7.9% gain from 2018’s total.
Whether the macroeconomic and real estate cycle continues to lengthen or we begin to see signs of a market correction, we can expect the small balance market to hold steady as lenders continue to maintain conservative underwriting. In the interim, favorable interest rates will elevate refinancing activity, and the sector’s continued maturation and increased agency support will continue to promote liquidity in the space.
For more insights on the small balance multifamily sector, read Arbor Chatter’s “Q2 2019 Small Balance Multifamily Investment Trends Report.”
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- Lending Volume
- Cap Rates & Spreads
- Interest Rates
- Leverage & Debt Yields