MIAMI—With multifamily interest rates rising, will lender appetite for construction loans change? And how do adaptive re-use strategies fit into the shifting market? We caught up with Walt Mercer, executive vice president and head of the Commercial Real Estate Line of Business for SunTrust Banks, to get his thoughts on lender appetite for multifamily construction loans and his take on the opportunities adaptive reuse projects are offering developers.

GlobeSt.com: Do you see any major changes occurring in multifamily development with interest rates rising?

Mercer: Historically speaking, interest rates remain relatively attractive. While the recent rise in rates certainly puts pressure on proceeds, we at SunTrust continue to anticipate a significant amount of capital deployment for multifamily deals across the country.