New Loan Programs Fill Void in Market

NEWARK-Relatively speaking, multifamily has been one of the most stable and sought-after properties over the past few years. Hence, it of little surprise that lenders–at least, those that are still active–have rolled out a variety of products geared toward the sector in an effort to generate more business and fill a void in the shrunken market. And due to the dominance of Fannie Mae and Freddie Mac, many of these products are geared toward assets and situations that would qualify for traditionally financing.

Among the most notable are small loan products for apartments. Firms such as Chicago-based Aries Capital, through subsidiary Aries Multifamily; Alliant Capital in Anaheim, CA; and New York City-based Centerline Capital, through its agency lending group, have all launched small lending programs over the past year. The debt typically is up to $5 million, and is sometimes obtained through the agencies’ small lending products.

Recently, Prudential Mortgage Capital Co. unveiled a new program that attempts to meet another need in the market: debt for unstabilized properties. Dubbed the Agency Gateway program, it caters to apartment owners who need to refinance or buy assets that currently don’t qualify for Fannie Mae or Freddie Mac financing. Those include well-located, completed or renovated properties that have not yet reached stabilized occupancy levels.