Alex Mundy, of the multifamily investment team led by Dylan Simon and Jerrid Anderson of Kidder Mathews, released a one-of-a-kind report this week tracking multifamily lending in Seattle and the Puget Sound region. The report concludes that, in this time of uncertainty, reviewing this granular data is the most effective way to understand which lenders can offer the best terms for investors.
The Multifamily Lending Market Update, now available for download, provides data and analysis of 2018, 2019, and Q1 2020 multifamily loan originations in the Puget Sound region, as well as 2019 national multifamily debt statistics and an overview of the impact that the global pandemic had on interest rates from March to June 2020.
“Following sharp drops after the Federal Reserve slashed rates in March, key interest rate benchmarks have remained mostly stable,” Mundy summarizes. “While historically low benchmarks do not necessarily translate to historically low rates for apartment owners in all situations, there has never been a better time to refinance a conservative loan. When it comes to acquisitions and construction loans, they are more challenging.”
Mundy is in close contact with lenders on a daily basis, providing insight into how loan volume and terms may have adjusted in the last few months and how lenders are looking at the current landscape.
“Although there are fewer active lenders in the market than there were six months ago, in some cases rates are available in the 2.5% to 3.0% range, and for those investors, it’s the right time to take advantage,” explains Mundy.
The Puget Sound region benefits from a robust lending ecosystem—the number and variety of competitive options available for apartment owners are extraordinary. While the market may have lost some ground in Q2 this year, the Puget Sound market’s resilience makes it a prime location for debt and equity investment now and as the economic recovery continues.
A digital copy of the full 2020 Multifamily Lending Market Update is available for download at DylanSimon.com/Research.
About the Dylan Simon and Jerrid Anderson multifamily investment team
The multifamily investment team led by Dylan Simon and Jerrid Anderson of Kidder Mathews represents apartment investors and developers in the sale, purchase, and financing of apartment buildings and development land ranging from $1 million to more than $100 million in value. As leading apartment and mortgage brokers, the team releases quarterly market research reports covering sales, development, employment, rent, vacancy, and lending to provide clients with relevant and actionable data to make profitable investment decisions. For more information, visit dylansimon.com.
About Kidder Mathews
Kidder Mathews is the largest independently owned commercial real estate firm on the West Coast, with 900 real estate professionals and staff in 22 offices in Washington, Oregon, California, Nevada, and Arizona. Kidder Mathews offers a complete range of brokerage, appraisal, property management, consulting, project & construction management, and debt & equity finance services for all property types. The firm performs $9.6 billion in transactions, manages over 70 million square feet of space, and conducts over 1,680 appraisals annually. For more information, visit kidder.com.