Here are 3 Quick things that you may find helpful regarding the current multifamily lending cycle.
1. Investors are heading back into the treasury market for safety, keeping it well below 3.0%. If you are close to locking a rate on any commercial real estate loan, you may find yourself benefiting from the drops in the treasuries. Current 10 Year Note is 2.82%
2. Small balance multifamily loans defined generally under $7.5 million, are priced ranging from 4.60% to 5.25%. Depending on Market. To give you an idea, we have a 32 Unit property locking today, at 4.61% for 12 years fixed.
3. Rising Interest Rates and Compressed Cap rates are causing some loans to not reach max proceeds due to Debt Service Constraints. Be mindful of this if you plan on using debt as part of your capital stack.
Other mortgage rate levels for Multifamily are as follows.
FHA: 4.15% (Max 85% LTV)
Life Cos: 4.10%- 4.70% (Max LTV 70%)
CMBS: 4.75-4.95% (Max LTV 75%)
As always if you need updated rates or any market information feel free to give me a call.
Thanks
Scott Taccati
President
Trillium Capital Resources
706-615-3030
www.trillium-capital.com
www.smallbalanceapartmentloans.com
www.hudapartmentloans.com
