MULTIFAMILY MONDAY: Lending Fever
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|Multifamily has been the most active in terms of lending (particularly under $30M), and 2013 brings even stronger projections. Lenders are motivated to close loans, according to Eastern Union Funding prez Ira Zlotowitz: “It’s been very competitive.” His firm saw a tremendous increase in activity this year, with $1.2B in closings, and he anticipates that will double by the end of 2013. (He may need more than just that phone and iPad.) In the short term, expect multifamily lending rates to potentially drop even lower come January, due to increased competition among lenders.|
|Most banks are only lending today on rental construction projects, he says, because rents are sky high and the cost of land is priced to build rentals versus condos. Eastern Union recently arranged a $21.3M construction loan for a 66-unit multifamily property with ground-floor retail on Montague Street in Brooklyn Heights, and he says that several banks report more construction loan commitments in the pipeline than at any time over the past 18 months.|