Commercial and Multifamily Originations Set a Record by Rising to New Levels

In 2018 Multifamily and Commercial mortgage bankers closed a record $573.9 billion of loans, as stated by MBA’s 2018 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

And all of these factors below combined led to an eight percent increase in recorded Multifamily Lending compared to last year.

  • Growing property values
  • Low interest rates
  • Solid fundamentals
  • Strong appetites from both lenders and borrowers

Let’s Break Down the Numbers

  1. Commercial Bank portfolios led the capital source with responsibility of $174 billion loans.
  2. Then GSEs, Government Sponsored Enterprises; Freddie Mac and Fannie Mae witnessed the second highest amount of $142.3 billion.
  3. Followed by Life Insurance companies and pension funds, Commercial Mortgage-Backed Securities (CMBS) issuers, investment funds, Real Estate Investment Trust (REITS), and mortgage REITS.

In terms of Property Types…

  • Multifamily Properties at $266.4 billion had the highest of mortgage bankers’ origination volume.
  • Followed by retail properties, industrial, health care, office buildings, and hotel/motel.

First liens accounted for 96 percent of the total dollar volume closed. The reported dollar volume of commercial and multifamily mortgages closed last year was eight percent higher than the volume reported in 2017. Among repeat participants in the survey, the dollar volume of closed loans increased by four percent.”

Jamie Woodwell Vice President, Mortgage Bankers Association

With loan originations on the rise, the need for site assessments has never been more important. UES Consulting and our team of inspectors are well-versed in the demands of commercial and multi-family transactions and how thorough, time-sensitive Phase I Environmental Site Assessments and Property Condition Assessments can help the process run smoothly and close on time. If you are looking for a company to partner with on your Commercial Real Estate transactions of any kind, turn to our in-house engineers and environmental consultants to alleviate the burden of environmental issues and mitigate risks. 

 

Information by MBA, Click here to purchase the complete report.

Qualified Opportunity Zones in Kansas City

Did you know that 52 million Americans (1 in 6) live in economically distressed communities? This is a major problem that Congress recently took a step to fix. Thus, Opportunity Zones were created in the Tax Cuts and Jobs Act of 2017.

Opportunity Zones are an innovative, flexible, and bipartisan solution for catalyzing private sector-led economic growth. In addition, they aim to connect low-income communities with much-needed capital.

In exchange, investors get a graduated series of federal tax incentives tied to long-term holdings.

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Lastly, information provided by Ruben Alonso President of AltCap and Korb Maxwell with Polsinelli. 

UES Consulting and our team are experts in Phase I Environmental Site Assessments and Property Condition Assessments and can help your projects run smoothly and close on time. If you are looking for a company to join together with on your commercial real estate transactions of any type, look to our in-house engineers and environmental consultants.