Marcus & Millichap

Where CMBS Lenders Currently Fit in the Multifamily Financing Space

September 11, 2018

After years of instability, many apartment owners and investors have once again come to depend on conduit lenders to finance deals that other lenders can’t or won’t.

“Conduit lenders do more ‘story’ deals,” says Richard Katzenstein, senior vice president and national director at Marcus & Millichap Capital Corp. In particular, many borrowers depend on conduit lenders to cash out, by borrowing against properties where the income from rents has recently increased.

Conduit lenders offer "maximum proceeds, maximum interest-only periods, quick execution, cash out re-financings," says James Millon, executive vice president in debt and structured finance for CBRE.

Read the Full Article