Competition Cuts into Fannie Mae’s Business

Fannie Mae and Freddie Mac lenders are fighting hard to compete with banks to make loans on apartment properties. “We absolutely see the competition from banks continuing and heating up,” says Hilary Provinse, Fannie Mae’s vice president for multifamily customer engagement. Banks are willing to make permanent loans to… Full Article

Secondary Markets Win Multifamily Investors

Bendix Anderson –

Multifamily investors are finding lower prices and higher yields in secondary markets. “Markets that people gave up on are now markets that people are going back to,” says Walter Page, director of research for Property and Portfolio Research, a division of the CoStar Group. “In most primary markets the average price per sq.ft. is twice what it is secondary markets.”

CoStar now expects to see the lowest average returns on real estate investments in prime markets like New York City and Washington, D.C. The highest average returns will come from investments in secondary markets, including … [Full Article]

Life Companies Look to Gain Multifamily Market Share

Bendix Anderson –

Life companies are in a strong position to lend in 2013–especially to the high-quality apartment properties they often target.

“We expect life companies will pick up business–they all have increased allocations this year,” says Faron Thompson, international director for Jones Lang LaSalle.

Life companies have built a reputation for competing very hard for high-quality multifamily properties and offering flexibility that few other lenders can match. This year, life companies appears to be growing their apartment lending into new areas as… Full Article