Rising interest rates are already making a difference for apartment properties. Borrowers can no longer secure the large permanent loans that have become used to.
“Delivering full-leverage loans has become a challenge,” says Dustin Dulin, managing director in the capital markets platform of real estate services firm JLL. “It is not as easy to underwrite the deals… Back in 2015, almost every deal underwrote cleanly.”
The change is carving a hole in the budgets of borrowers who need to buy or refinance apartment properties.
Read more...Multifamily Investors Face a Cutback in Loan Size | National Real Estate Investor