LOS ANGELES—“I think the agencies are better than the banks right now,” Gary Tenzer, managing director and principal at George Smith Partners, tells GlobeSt.com about the tremendous activity in agency lending. The agencies have become ideal for multifamily borrowers, thanks to competitive pricing and a lack of competition from other capital sources. “The agencies are really going gangbusters,” says Tenzer. “They are putting out money and are very active, and they have very aggressive pricing. Clearly, they beat CMBS, and for multifamily, it is really the way to go.”
Tenzer adds that the agencies really don't have a lot of competition at the moment, especially following the collapse of CMBS and banking that occurred at the beginning of the year. That volatility left the agencies as an appealing choice for borrowers. “The real competition that they have are commercial banks, and for really big loans, commercial banks can't do them,” says Tenzer. “If you are talking about the $1 million to $50 million price range, then commercial banks can do those. If they are priced competitively, they are either floaters over LIBOR with a cap or some banks will write a fixed-rate loan. But, I think the agencies are better than the banks right now.” Overall, Tenzer says that the agencies want A and B product, but may even take C+ in the right situation.
Tenzer is sharpening his agency acumen to serve as moderator on the Agencies of Change panel at the upcoming RealShare Apartments conference next week. The panel includes Jeff Burns, managing director at Walker & Dunlop; Laurie Morfin, SVP at Bellwether Enterprise; Greg Reed, SVP of originations at Capital One Multifamily Finance; and Jeff Weidell, president of NorthMarq Capital.
“They are truly the agency experts,” says Tenzer, who is going to use his time with the panelists to discuss market trends and agency programs. “One of the things that I am really looking to bring up is the caps,” Tenzer adds. “Last year there were $30 billion caps at each agency, and there are certain types of properties that were not subject to the caps, like the green program, affordable and low-income were not subject to the cap. I don't know what the cap situation is this year and if the caps have increased.” Additionally, he plans to discuss everything from green financing programs with the agencies to pre-stabilization programs, new products, changing bank regulations and how each agency rate locks with the panelists.
Join us on October 20 at the Westin Bonaventure in Downtown Los Angeles to hear more about agency trends and other multifamily market trends at RealShare Apartments.
LOS ANGELES—“I think the agencies are better than the banks right now,” Gary Tenzer, managing director and principal at George Smith Partners, tells GlobeSt.com about the tremendous activity in agency lending. The agencies have become ideal for multifamily borrowers, thanks to competitive pricing and a lack of competition from other capital sources. “The agencies are really going gangbusters,” says Tenzer. “They are putting out money and are very active, and they have very aggressive pricing. Clearly, they beat CMBS, and for multifamily, it is really the way to go.”
Tenzer adds that the agencies really don't have a lot of competition at the moment, especially following the collapse of CMBS and banking that occurred at the beginning of the year. That volatility left the agencies as an appealing choice for borrowers. “The real competition that they have are commercial banks, and for really big loans, commercial banks can't do them,” says Tenzer. “If you are talking about the $1 million to $50 million price range, then commercial banks can do those. If they are priced competitively, they are either floaters over LIBOR with a cap or some banks will write a fixed-rate loan. But, I think the agencies are better than the banks right now.” Overall, Tenzer says that the agencies want A and B product, but may even take C+ in the right situation.
Tenzer is sharpening his agency acumen to serve as moderator on the Agencies of Change panel at the upcoming RealShare Apartments conference next week. The panel includes Jeff Burns, managing director at Walker & Dunlop; Laurie Morfin, SVP at Bellwether Enterprise; Greg Reed, SVP of originations at
“They are truly the agency experts,” says Tenzer, who is going to use his time with the panelists to discuss market trends and agency programs. “One of the things that I am really looking to bring up is the caps,” Tenzer adds. “Last year there were $30 billion caps at each agency, and there are certain types of properties that were not subject to the caps, like the green program, affordable and low-income were not subject to the cap. I don't know what the cap situation is this year and if the caps have increased.” Additionally, he plans to discuss everything from green financing programs with the agencies to pre-stabilization programs, new products, changing bank regulations and how each agency rate locks with the panelists.
Join us on October 20 at the Westin Bonaventure in Downtown Los Angeles to hear more about agency trends and other multifamily market trends at RealShare Apartments.
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