Multifamily growth remains steady and upward, but one area that has evolved over the past few years is the financing of these projects, says Greystone Servicing Corp portfolio lending group managing director Jef Elm (one of the featured speakers at our DFW Multifamily Summit). Previously, all that was available was a bank construction loan or a permanent loan through one of the agencies (FHA, Fannie Mae, or Freddie Mac). Because of the strength of the overall economy and multifamily sector, new loan products have popped up. (That’s Jeff at the Old Head Golf Links in Ireland.)

Today, borrowers have access to bridge programs, which basically provide a good additive to a value-add acquisition, he says. This could be an ideal tool for a buyer looking to acquire a Class-B or C apartment complex with plans to renovate it by spending about $5k to $10k per unit, so they can generate higher rents, he says. Using a two- to three-year bridge loan, the buyer has time to do renovations and raise rents, and then get a permanent loan on the property, which could allow a quicker payoff of the equity in the project. While some are worried about the new supply coming online in the DFW market, Jef thinks the units will be absorbed fairly quickly because they're being built in desirable submarkets (Uptown, Richardson, Plano). On his agenda this summer: Boy Scout camp with his son on Catalina Island near LA. Bless his heart, they’ll be camping out on the beach for a week.