Barry Saywitz Barry Saywitz

Banks are showing the first signs of concern about the Southern California multifamily market—which has been the darling of this cycle. With prices hitting record numbers, cap rates continuing to compress and rents increasing at a rapid pace, bank lenders are beginning to pull back on multifamily lending. While there is still demand for the right deals, multifamily borrowers may start to find higher leverage requirements and more scrutiny of the deal—especially as compared to the last few years.