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Ahead of Bisnow's Second Annual Charlotte Real Estate Summit at the Ritz-Carlton on Aug. 3, we asked Grandbridge Real Estate Capital SVP Michael Ortlip (also one of our expert panelists) for insight about the lending environment going forward.
Michael Ortlip
1) So far so good, despite the bumpy macroeconomic recovery. Michael, pictured at a Charlotte event earlier this year, tells us that insurance companies, Freddie Mac, Fannie Mae, and FHA have had robust lending results thus far in 2012, and conduits and a variety of non-traditional lenders have also been active. Banks have been selectively lending for new construction—primarily multifamily—and construction mezz loans have been more prevalent as well.
Reznick (Investor) MCHAR
apartment construction
2) As for longer-term debt, the outlook is also reasonably good. Michael says that he expects long-term multifamily and CRE debt to continue to be  available for the remainder of 2012 (until the Mayan apocalypse wipes out all lending), although some lenders have expressed concern over the low absolute yields that they're booking for long-duration assets.
apartments for rent
3) But there's a caveat (there's always a caveat or two in the world of finance). "The only cautionary note that I have heard is market-specific, with respect to new multifamily construction," he tells us. "Some anticipate a brief spell of over-supply to occur once deals under construction have delivered in some Southeastern markets."
Related Topics: Michael Ortlip