Bridge lenders are seeing increased demand from multifamily borrowers amid rising FHFA regulations. Cade Vander Broek, managing director, West Coast at Money360, is talking about trends in the multifamily lending market ahead of his appearance at GlobeSt.com Apartments on October 26 and 27.

"With the extreme interest in, and demand for multifamily debt and further considering the high priority FHFA has put on affordable housing, we see increased requests for multifamily bridge loans seeking time to stabilize or reposition themselves before they are ready for an optimal permanent loan," Vander Broek tells GlobeSt.com.

While there is increased demand, volatility in the apartment market—from low rent collections to double digit rent fluctuations in some markets—has made it challenging to underwrite apartment deals. Vander Broek says that a realistic business plan is the key to securing capital in the bridge space. "While the market is hot now and rents seem to escalate in most markets, the tide can change quickly.  Not all markets and all assets even in multifamily are created equal," he says. "We must have experienced sponsors in the multifamily space with the value add or repositioning success in those markets."