Is Now The Time To Consider Green Financing?
With Treasuries up about 50 basis points after the surprising election of Donald Trump, most borrowers—and lenders for that matter—are in "wait-and-see mode." But those that are active should consider green financing, according to experts at Bisnow's 2016 Multifamily Surge last week.
Borrowers can gain up to 30 bps points back with green financing, KeyBank SVP Charlie Williams said.
Freddie Mac and Fannie Mae do green financing a little differently, Prudential Mortgage Capital principal Anthony Tarter says. With Fannie, you could get back up to 40 bps with energy and water savings improvements. With Freddie, you could get back about 15 bps, but the improvements are less substantial, Anthony says.
Lean on your agencies to determine if green financing is a good fit for your multifamily deals, Hunt Mortgage Group managing director Vic Clark says. Many agencies will pay for reports that show ROI—and usually significant savings to the client.
Vic says most owners do not test the cost savings a year or two later, and that could be a real opportunity to prove ROI to tenants.
Here are Vic, Milestone Apartments CFO Ryan Newberry, Anthony, Greystone managing director Jef Elm, Charlie, Berkadia senior managing director John Koeijmans and IPA Texas director Drew Kile at our event.
