Reflecting on the Multifamily Finance Environment

2019-12-03T17:22:21+00:00By |Financing|

Reflecting on the multifamily finance environment for 2019 -- it’s been fairly smooth sailing. Earlier this year, 10 year full-leverage multifamily interest rates were heading annoyingly close to 4.50% with capitalization rates in strong markets dipping below debt constants. Later in the year, as there was some indication of U.S. economic weakness, the Treasury yield curve inverted, reducing long-term Treasury yields. As we reached the 4th quarter, Fannie Mae and Freddie Mac loan originations earmarked for 2020 were no longer competing with 2019 volume cap constraints, and multifamily agency spreads dropped, bringing 10 year fixed rates back below 4.00%. As

Is the Inverted Yield Curve Your Ticket to Lower Prepayment Premiums?

2019-12-03T17:00:16+00:00By |Financing|

On October 8th of this year, the Treasury yield curve switched gears and went back to its normal, albeit ever so slight, positive upward slope.   And since the spread between the 1 and 10 year Treasury yields is currently minimal, the same principal regarding yield maintenance penalties on your multifamily loans still applies – double-check everything in your portfolio.    Contact your lenders and ask them to provide payoff calculations for those yield maintenance loans which mature from 2020 to 2023.    If your 2020 goals include looking for hidden gems of equity in your portfolio, selling a property, or refinancing

Rate Locking a Multifamily Agency Loan

2019-06-17T16:13:14+00:00By |Financing|

As a result of continued strong demand for multifamily acquisitions in the U.S., capitalization rates being paid by investors can easily be equal to or less than debt constants on multifamily agency loans. For example, if you are purchasing a property in a high demand market you might need to acquire the property at a capitalization rate at or below 5%. In today’s interest rate environment (June 2019), your debt constant for a market rate non-green certified property could easily exceed the purchase capitalization rate by 1% (5.75% to 6.00%). If interest rates increase as the loan application is

Contact Information

Kathryn Cassidy
2000 Auburn Drive, Suite 200
Beachwood, OH 44122

Phone: 216.765.9000

Fax: 440.919.0270