Apartment Demand Turns Out Big Growth

LOS ANGELES—Apartment loan demand is fueling growth for capital markets solutions and servicing firms. Berkley Point Capital closed $573 million in Fannie Mae transactions, a combination of multi-asset credit facilities and standard DUS loans, this summer. As a result, the firm is on track to generate a 20% to 30% increase in volume this year over 2015. The summer surge was a total of eight transactions.

“As far as the entire company is concerned, I can tell you that Berkeley Point has already closed a higher dollar volume of business year to date than it closed all year in 2015,” Mitch Clarfield, senior managing director at Berkley Point Capital, tells GlobeSt.com. Four of the deals totaled more than $100 million, and included a credit facility for Simpson Housing Fund II for an three multifamily properties, a credit facility for Jackson Square Properties, a credit facility for an affiliate of Somerset Partners and refinancing on two properties for K/UDR.

The increase in volume for the firm is the result of increasing demand for apartment loans as well as the upset in the CMBS market at the beginning of the year, which turned many borrowers to alternate lending sources. “GSE lending has benefited somewhat from the dislocation in the CMBS markets, but more generally, apartment loan demand has increased and I would expect it to continue to increase in the coming years,” explains Clarfield. “Capital  continues to flow towards the multifamily sector as it provides a relatively safe asset class with stable to increasing cash flow.”

Clarfield wasn't surprised to see the increase in volume this year, especially as apartment investment has continued to grow in popularity and as the apartment market benefits from disruptions in other asset classes. “We are fortunate to have top-quality customers that recognize our execution capabilities and that value that we can add to a financing transaction,” he says. “They continue to provide us with the opportunity to help them achieve their financing objectives, which become more complex as they become larger and more successful.  We are also fortunate to have Fannie Mae and Freddie Mac as partners, as each provide a steady and predictable source of funding and both continue to come up with innovative responses and solutions to the complexities of large portfolio financing as well as more standard, one-off transactions.”

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

LOS ANGELES—Apartment loan demand is fueling growth for capital markets solutions and servicing firms. Berkley Point Capital closed $573 million in Fannie Mae transactions, a combination of multi-asset credit facilities and standard DUS loans, this summer. As a result, the firm is on track to generate a 20% to 30% increase in volume this year over 2015. The summer surge was a total of eight transactions.

“As far as the entire company is concerned, I can tell you that Berkeley Point has already closed a higher dollar volume of business year to date than it closed all year in 2015,” Mitch Clarfield, senior managing director at Berkley Point Capital, tells GlobeSt.com. Four of the deals totaled more than $100 million, and included a credit facility for Simpson Housing Fund II for an three multifamily properties, a credit facility for Jackson Square Properties, a credit facility for an affiliate of Somerset Partners and refinancing on two properties for K/UDR.

The increase in volume for the firm is the result of increasing demand for apartment loans as well as the upset in the CMBS market at the beginning of the year, which turned many borrowers to alternate lending sources. “GSE lending has benefited somewhat from the dislocation in the CMBS markets, but more generally, apartment loan demand has increased and I would expect it to continue to increase in the coming years,” explains Clarfield. “Capital  continues to flow towards the multifamily sector as it provides a relatively safe asset class with stable to increasing cash flow.”

Clarfield wasn't surprised to see the increase in volume this year, especially as apartment investment has continued to grow in popularity and as the apartment market benefits from disruptions in other asset classes. “We are fortunate to have top-quality customers that recognize our execution capabilities and that value that we can add to a financing transaction,” he says. “They continue to provide us with the opportunity to help them achieve their financing objectives, which become more complex as they become larger and more successful.  We are also fortunate to have Fannie Mae and Freddie Mac as partners, as each provide a steady and predictable source of funding and both continue to come up with innovative responses and solutions to the complexities of large portfolio financing as well as more standard, one-off transactions.”

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.