WASHINGTON, DC-With Congress continuing to target GSEs with various measures, it is little wonder the industry is speculating about what it will all mean for financing. However there are other factors to consider besides the availability, or not, of GSE multifamily finance. One is the burgeoning supply pipeline that can now be found in almost all markets. "I would say that is the biggest concern right now for developers seeking financing—the immense supply," says Paul Norman from Cushman & Wakefield's Multifamily Advisory Group. In the DC market, he tells GlobeSt.com, there are some 27,000 units anticipated to deliver in the next two years, which is five times the normal supply. "That is a big concern for a lot of folks," Norman says.

Norman is throwing his weight in with the growing school of thought that while multifamily development--and conversely financing--hasn't necessarily peaked, it is becoming more cautious. "A lot of projects done in the past were stand alone multifamily and those are becoming increasingly difficult to finance now. Going forward, we will see a greater emphasis on transit-related access as well as retail amenities with multifamily projects," he predicts.

Urban in-fill is also high on lenders' list of criteria.

One recent example is provided by MAC Realty Advisers, which recently reported placing a senior construction loan for the development of Kalorama West, a 117-unit apartment building in Adams Morgan.

MAC Realty secured a $28.6 million non-recourse loan from a national bank for the venture, which developed and owns the adjacent 394-unit Dorchester House. Kalorama West is an expansion of the existing apartment building, which will be built on Dorchester House's surface parking lot. Construction of the five-story wood-frame building is expected to begin in April 2013 and it will be delivered in the first quarter of 2015. A number of lenders competed for the in-fill project and the loan required virtually no new cash equity, according to MAC executives.