LOS ANGELES-Due to the boom in multifamily development and capital pouring into multifamily investments, some are concerned that a new multifamily bubble is forming, according to panel moderator Gary M. Tenzer, principal and managing director at George Smith Partners, during RealShare Apartments 2013 in Los Angeles. Other panelists, however, didn't necessarily share his concerns.

“It depends on the region,” said Alexia Mizrahi, Loan Originator at Loan Oak Fund. “Densely populated markets have appropriate cap rates. There is not a bubble in coastal communities.” Demand in these more populated markets continues to be strong, she continues, and lenders are staying aggressive.

In second a tertiary markets, there is increased activity with investors looking for cap rates and yield, but that can be hard to find. Panelist Ed Zimbler, SVP of Berkadia, adds that conduits are filling the void while agencies are showing a lot of discipline.

Tenzer also questioned whether panelists would lend to clients who have had past financial troubles, like bankruptcy. Most of the panelists, including Scot Cunningham, VP of national sales manager of income property lending at B of I Federal Bank, said they would lend to clients with a spotty financial history. Michael Derk, VP of Capital Markets at Marcus and Millichap, agreed, as long as the incident was a one time occurrence.

Other panelists at RealShare Apartments 2013 discussed the future of agency lending, explaining that conduits, life companies and agencies are staying aggressive and keeping the multifamily market competitive.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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