Lenders Still Eager for Seattle Deals
Berkadia SVP Louis Weisman tells us that following a strong year in 2014, Seattle will continue to be a magnet for mortgage lenders. In the multifamily realm, Seattle is a Tier 1 market—the highest rating—for both Fannie Mae and Freddie Mac, and both will continue to be “smart aggressive” when it comes to the financing of recently completed projects or those acquired for value-add opportunities, he says. Life companies will also be active—although not as aggressive on loan terms and dollars—and regional banks will continue to compete for their share of opportunities.
“As for new construction, we expect construction lenders to be selective considering the delivery pipeline, working with the most experienced and well-capitalized development companies,” Louis says. “By the look of the development pipeline, Seattle is fortunate to have a big list of experienced firms.” Finally, Seattle’s such a hot market that lenders are eager to do deals involving some kinds of under-the-radar properties. For example, Berkadia’s Seattle office recently originated over $21M in loans to refi three self-storage facilities in the Puget Sound region. Louis repped the borrower, Ray Moore Construction, to close the 10-year, interest-only loans through a major Wall Street lender.
