In spite of all the news out there about frozen credit markets, lending for apartments is still available. In an article by Bendix Anderson in Apartment Finance Today, (Nov/Dec 2008), sources for these smaller loans (I’m hearing under $5 million) are still lending. These sources include governments-sponsored enterprises, banks, thrifts and private lenders.

Rates continue to be favorable and underwriting is relatively similar to pre-financial crisis days.  Why would this lending still be happening even in this climate of uncertainty and banking industry troubles? The answer lies in the balance sheets. The article quotes MBA’s Woodwell saying “If you look at multifamily loans, they’ve generally been performing really darn well.”

While the road ahead is uncertain for much commercial real estate, apartments continue to be a bright spot in a bleak horizon.

Read the full article here.

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