Lenders Competitive But Not Overreaching
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Sagiv Rosano: “We believe core fundamentals are still being weighed heavily by lenders.”
LOS ANGELES—While some lenders have been flexible on terms and leverage to stay competitive, most lenders are still adhering to core fundamentals, according to Sagiv Rosano, founder and president of Rosano Partners. The firm recently secured acquisition and refinance funding for three different borrowers on apartment complexes. These more commonly sized transactions illustrate that lenders are being flexible but careful.
“The ‘loosening of the reins’ is happening only on a deal by deal basis, so it’s not rampant. Naturally, we’ve seen more of this activity in class-A properties,” Rosano tells GlobeSt.com. “In smaller, urban markets, we often work with bridge lenders who are actively competing for market share, and as a result, they are often willing to reduce rates to make a deal sweeter for a borrower. We believe core fundamentals are still being weighed heavily by lenders. That said, many of the bridge lenders are comfortable owning a property if needed, and for this reason, they are often willing to stretch the fundamentals a bit more than others.”…
