(Read more on the debt and equity markets and the multifamily market.)

WASHINGTON, DC-Condo reversions, once rare endeavors in the DC market as little as one year ago, are now downright commonplace. Fortunately, financing to revert condo buildings back to multifamily assets is still available, especially for close-in DC assets, according to one broker.

“There is still plenty of debt available,” Ted Hermes, VP of Walker & Dunlop tells GlobeSt.com. “Yes, the rates are a little higher and there are fewer lenders out there. And the capital markets have almost shut down. But the agencies and portfolio lenders are still active.” Hermes reports he is working on several condo reversions at the moment and is confident he can place the debt.

Still, though, it will be hard to beat the financing Palisades Apartments located on 4540 MacArthur Blvd., in Washington, DC, received in May to fund its reversion. Owned by Palisades LLC, the 62-unit building received a $6.5-million refinance loan that was structured as a 10-year, IO with a rate of 5.5%. Walker & Dunlop negotiated the deal with Green Park Financial, a national multifamily finance provider that loans through Fannie Mae.

Three months later, Hermes reports, Green Park Financial still has very competitive spreads, but agrees this particular deal would be difficult to replicate. “The timing was perfect for the borrower. It was able to lock rate right before the volatility started.”

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