The small-loan market heated up in a big way last year, and that momentum has carried over into 2012.
Fannie Mae’s small-loan program continues to dominate the market, offering some of the best rates available for deals of $5 million or less. But more balance-sheet lenders, mainly national, regional, and community banks, are pecking away at Fannie’s market share.
Chase Commercial Term Lending continues to be one of the most active small-loan lenders, especially in major markets on the West Coast and Chicago. And though most life insurance companies favor large loans, there are a few, including Symetra, StanCorp, and Protective Life, that have an appetite for deals below $5 million.
“A lot of multifamily bank lenders got back into the game last year,” says Rick Warren, a managing director who runs the small-loan business line for New York–based Fannie Mae lender Centerline Capital Group. “We saw competition come back very strong in the small-loan space—a lot more competition than I think anybody had anticipated.”
Read more...Small-Loan Market Heats Up - Debt - Multifamily Executive Magazine