SAN DIEGO—There is a contraction of overall loan to values on both acquisition and development deals, according to Jeff Erxleben, EVP and regional manager at NorthMarq Capital. The contraction is what is called an equity or capital stack gap, and it has created a need for an investor to bridge that gap from the senior debt to the traditional equity component. This issue has caused a pull back in financing, especially for development projects
At MBA CREF Multifamily conference earlier this week, we sat down with Erxleben to discuss the equity gap and the solutions for borrowers. There was good news. Investors have been providing gap equity for these transactions, and it is a new trend that Erxleben is seeing in the market today. Watch the video to find out more about the equity gap and creative financing solutions.
SAN DIEGO—There is a contraction of overall loan to values on both acquisition and development deals, according to Jeff Erxleben, EVP and regional manager at NorthMarq Capital. The contraction is what is called an equity or capital stack gap, and it has created a need for an investor to bridge that gap from the senior debt to the traditional equity component. This issue has caused a pull back in financing, especially for development projects
At MBA CREF Multifamily conference earlier this week, we sat down with Erxleben to discuss the equity gap and the solutions for borrowers. There was good news. Investors have been providing gap equity for these transactions, and it is a new trend that Erxleben is seeing in the market today. Watch the video to find out more about the equity gap and creative financing solutions.
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Kelsi Maree Borland
