LOS ANGELES—Dominion Mortgage Corp. has expanded its multifamily financing services with the launch a new multifamily portfolio lending program. The program will fund multifamily acquisitions and refinances in metropolitan markets throughout the US, and illustrates a shift in the company’s focus to multifamily lending opportunities.
“We have been making loans to apartment owners for over 30 years, so this is more of an expansion of our existing program,” Loren Thall, VP of Dominion Mortgage Corp., tells GlobeSt.com. “This program will appeal to more people with different situations. Now, we will be able to make loans to foreign nationals and investigate borrowers with credit issues rather than reject the loan. We are focusing more on multifamily because we think it is a good investment for both investors and lenders. There are a lot of people who are having trouble qualifying for loans because the requirements are so stringent right now.”
Dominion is targeting smaller, private investors funding acquisitions and refinances. The multifamily platform will offer loans up to $30 million with 10-year terms and amortization of up to 30 years. “When you get up to $30 million, you start to see more institutional players. For our program, we expect to see more in the $2 million to $15 million range,” Thall explains. Dominion can secure flexible financing and competitive rates, especially for smaller investors. Thall says that they are able to get rates in the high 3% to low 4% range, depending on the terms of the loan.
The multifamily market has been leading the commercial real estate sector, and several smaller investors are looking for opportunities. In a recent interview about financing in the multifamily market, George Smith Partners‘ Steve Bram agreed that demand for multifamily is high, explaining that rents are reaching peak levels. According to Bram, multifamily financing tends to be most available near employment centers, where demand is highest.