Coleman: Life Cos. Will Go Beyond Multifamily in 2013

BETHESDA, MD-A life insurance company‘s construction-to-permanent loan secured earlier this summer for a mixed-use project in Arlington, VA, could well augur similar, and perhaps grander, transactions in 2013. The loan, arranged by Walker & Dunlop for 2001 Clarendon Blvd., was unusual in that it had a 13-year term with the first three-years as interest-only, followed by a 30-year amortization schedule.It was also non recourse.

But while that might have been eyebrow-raising in August, by first quarter of 2013 it could well be common for life insurance companies, speculates Walker & Dunlop SVP of Capital Markets Andrew Coleman, who arranged the deal. “I expect to see construction perm loans in play for other asset classes next year, not just multifamily” which has been the favored asset class for life companies this year, he tells GlobeSt.com.