You might not think of commercial banks as a prime source for longer-term loans—but seven-year terms have become common for commercial mortgages provided from the balance sheets of banks eager to lend, especially on multifamily properties.
Apartment managers should not rush to cut rents, even if a flood of new apartments are expected and the construction cranes loom over their properties. If vacancies are still low, there still may be time to raise rents before competition for tenants force existing apartments to trim their rental rates.
Investors are seeking higher yielding investments, looking far beyond conventional, class-A apartment properties in prime markets. A growing number are bidding for government subsidized affordable housing properties.
Lending to commercial and multifamily properties made another strong showing in the third quarter of 2013, according to the latest Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations released last week by the Mortgage Bankers Association.
Despite declining stock prices for student housing REITs, the fundamentals of the student housing business are still strong, according to Jim Arbury, Vice President for Student Housing with the National Multi-Housing Council.