Home > Financing and interest rates, multifamily, Uncategorized > The 2013 MBA-CREF Conference

The 2013 MBA-CREF Conference

BMC Capital staff attended the 2013 MBA-CREF Conference in San Diego, CA. 

This was the most optimistic conference since 2007.  As a whole, lenders expect to increase their funding volumes in 2013 between 15%-65%.  CMBS lenders are projecting 2013 volumes between $60-$75B (2012 volume=$45-50B). 

Further, CMBS lenders indicated we could see LTV’s to 80%, 10 years interest only and debt yields as low as 8.25%. 

It will be interesting to see how much of this actually comes to fruition.  Life Cos continue to be a steady player in the market with most indicating funding volumes will increase 5-15% in 2013. 

FNMA lenders will continue to play a major role in multi family financing.  Look for many FNMA lenders to aggresively grow their bridge loan programs in 2013. 

Banks continue to grow and we met with many new players that intend to enter the market  this year.  

A $3B bank we met with indicated they plan to fund $500M of CRE loans during the next 12 months. 

In addition, there are several new capital sources offering bridge loans with rates in the 6-7% range, 75% LTV-LTC, recourse or non recourse. 

In general, underwriting will continue to be based upon historical operating results and DCR’s in the 1.25X range. 

Even with rates increasing slightly, it is still a great time to be seeking debt in the commercial real estate financing market.

By Keith Van Arsdale


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