What's Hot In Refi

The capital markets have been focused on Carolina multifamily. No more.Retail, for one, is gaining fast in refi volume. (People need to buy things to fill all those apartments they rented.)

Lenders are now very interested in financing retail properties, especially grocery-anchored centers and well-located, unanchored centers, Capital Advisors prez Cooper Willis tells us.Given the resurgence of small business owners and entrepreneurs, demand for local space is strong as ever. This demand should drive occupancies higher. As a result, retail should continue to be a preferred asset class among lenders. Recently Capital Advisors arranged a $5M refi for the 42k SF 5700 University Pointe Shopping Center through a correspondent lender, Genworth Life.

Retail refi might be gaining momentum, but multifamily refi is still king of the hill in the Carolinas. KeyBank Real Estate Capital SVP Todd Goulet tells us that the volume of multifamily refi is equal to or greater than last year. Chalk it up to healthy multifamily fundamentals, for one thing, but also low interest rates andincreasingly importantthe fear of rising interest rates. (Rising interest rates are like boogie men for adults.) Moreover, conduits and life companies are ramping up to compete with the agencies. Recently KeyBank closed a $16M loan for Certus Parters to refi Raeford Crossing Apartments, a 291-unit property in Fayetteville. Bank VPs Kathy Anderson and Jeff Hunkele oversaw the deal.