While rent hikes in 2013 probably won’t match the robust rates seen the past couple years, rock-bottom debt pricing should continue unabated in 2013.
Given the Fed’s commitment to prevailing monetary policies, the low-rate environment won’t retreat any time soon–the federal budget’s looming fiscal cliff notwithstanding. Meanwhile the budding re-emergence of Wall Street conduits should help keep other conventional apartment lenders quoting tight spreads, multifamily finance pros agree.
“Any concern we may have about higher (interest) rates or wider (apartment) spreads would be beyond 2013,” relates Matthew Rocco, national production manager with Grandbridge Real Estate Capital. “So we may see one of the best years ever in terms of debt costs and availability.”
Indeed, 2013 promises a continuing borrower bonanza with permanent, bridge and construction quotes usually coming in below 4 percent.
Rocco and others do caution that… Read More…