Multifamily

Diversity and metropolitan focus could provide resiliency in economic downturns

Eagle + West is Brookfield's premier luxury building at Greenpoint Landing.

Multifamily debt held by all capital sources continues to grow at a faster pace than the overall commercial market, the Mortgage Bankers Association said.

Fannie Mae set aside $752 million for credit losses in its apartment complex lending business in part because of fraud or suspected fraud, denting profits amid an industrywide scrutiny of borrowers. 

The multifamily property securities market is expected to stay resilient, despite weaknesses in certain markets due to cooling rent growth, higher vacancy, or oversupply.

Classes A through E, do not allow for payment-in-kind, which allows borrowers to use assets other than cash—such as equity or shares—to make interest payments.

The Seattle-based company's deal with Bank of America comes five weeks after the termination of its planned sale to FirstSun Capital Bancorp in Denver.

Origination volumes grew across nearly all sectors of commercial real estate on both a quarterly and yearly basis, according to the Mortgage Bankers Association.

Apartment buildings, which make up about 40% of the looming maturities, are at the center of the refinancing wave. Many U.S. owners bought their properties using three-year floating rate loans during the easy money era.

While the total dollar volume of apartment originations fell last year, the number of companies making loans increased from 2022, the Mortgage Bankers Association said.