Tuesday, February 7, 2012

SPECIAL REPORT: Banks Wary About Possible Overbuilding in Apartment Markets via MHNonline

Construction lenders raised concerns about the possibility of future overbuilding in multifamily markets at the Mortgage Bankers Association’s (MBA) Commercial Real Estate Finance/Multifamily Housing Convention 2012, which opened yesterday in Atlanta. The financiers were speaking on the panel titled “Lending for Bank Portfolios—Easy Does it or Rocky Road?”

Ken Broussard, regional executive of the Income Property Group of KeyBank, said the bank has had conversations questioning whether there is “too much development or structures that can cause a bit of a bubble in multifamily.”

“No one is saying ‘yes, probably,’ but at least there is a discussion, because across the country all of our regions are seeing a lot of requests on new construction in multifamily,” he said. Broussard said 60 to 62 percent of the group’s new originations in 2011 were in the multifamily sector, primarily in permanent debt.

Raed more...SPECIAL REPORT: Banks Wary About Possible Overbuilding in Apartment Markets via MHNonline.com

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