Over the first half of this year, we have seen a dramatic shift in multifamily capital markets from what we had become accustomed to from 2019 – 2021. This shift can be explained by a variety of factors but our thesis, supported by the data in this report, is that the continual compression of cap rates combined with a looming interest rate surge has led more and more multifamily investors to CLO and private debt loan products that feature less stringent underwriting requirements and serve as a “bridge to stabilization.”
In this report, we explore:
- How and why lending patterns in commercial real estate have shifted over the past 36 months.
- Alternative lending options and whether we can expect private debt to maintain its current market share.
- Whether cap rates will remain compressed in today’s rising interest rate environment.
- Notable shifts in LTV requirements broken down by type of lender.
- Other key trends multifamily investors and lenders should watch throughout the rest of 2022.
Download Franklin Street’s full Q2-22 Capital Advisory Report below: