This morning I had the opportunity to attend the Greater Cincinnati-Northern Kentucky Apartment Association Multi-Family Finance Forum.
My three major takeaways from the event are these:
1. The fed drop in interest rate has spiked demand for new, lower interest rate debt to nearly three times the average. Owners are considering eating the prepayment penalties they face to lock in that debt.
2. Lenders - Fannie Mae, Freddie Mac & Life Companies - are cautious, but still have a healthy appetite. They are stress testing the loans for exit assumptions to make sure the loans can be refinanced at the end of the term, and are rejecting some that do not meet that criteria.
3. Demand from lenders remains strong, workforce housing is still a priority, as is green renovations, however the latter is no longer emphasized as much. Stabilized assets are king, however value-add is still ever en vogue.