BOSTON: Red Sox And Borrowers Win
There's pressure on underwriting criteria because of the abundant capital out there and a "crowd" mentality, Prudential Mortgage Capital's Melissa Farrell said at Bisnow's Boston Capital Markets Summit. When one lender starts extending interest-only loans, everyone considers following suit. (Peer pressure doesn't end after high school, folks.) For lenders, multifamily is still the darling. Since Fannie and Freddie pulled back in mid-year, Prudential increased its participation in that sector. Year to date, more than 30% of its business has been in rental apartment buildings, an anomaly, followed by industrial and retail. But the properties tend to be in major markets, while leverage is a modest 60% to 65% LTV. Prudential is aiming to do $9B this year in real estate deals, she says.
