Life Company Lenders
3yr – 30yr fixed rate options with IO available and varying prepay flex structures.
Max LTV constrained by achieving at least a 1.30x DSCR on a 30yr am, except for deals with significant upside to rents.
3yr fixed rate bridge and floating rate bridge offered for multifamily, industrial & retail.
Construction and construction to perm for multifamily, industrial, and grocery-anchored retail.
Life Co perm spreads for loans greater than $10MM (over corresponding UST):
Industrial (Distribution/Logistics) | 1.35% - 1.90% | Single-tenant Retail | 2.40% - 2.75% |
Flex/Light Industrial | 1.65% - 2.10% | Self-storage | 1.65% - 2.10% |
Grocery or IG Credit-anchored Retail | 1.35% - 1.90% | Office | 2.75% - 3.25% |
Strip/Shadow-anchored Retail | 1.90% - 2.50% | Multifamily | 1.20% - 1.80% |
Big Box Retail | 2.20% - 2.50% | MHC | 1.65% - 2.10% |
Debt Funds
Debt funds are winning bridge and construction business from banks due to their strong lending appetite and availability of no-strings-attached liquidity.
18–36-month terms with extensions.
Multifamily | 2.25% - 3.25% | Grocery or IG Credit-anchored Retail | 3.00% - 4.25% |
Industrial | 2.50% - 3.75% | Other Retail | 3.75% - 5.00% |
Self-Storage | 3.25% - 4.75% | Office | 5.50%+ |
Banks & Credit Unions
Banks are generally risk-off on real estate lending and mostly focused on deposits.
Most banks exclusively offer floating-rate debt to mitigate fixed rate balance sheet risk.
Banks are still not competing on perm debt. The lowest perm bank spread starts at 2.25% over USTs
or Swaps
Banks are competitive on floating rate construction and bridge debt in exchange for a sizeable deposit
relationship. The best pricing starts at SOFR+2.00%.
Credit Unions remain active with a wide range of spreads between 2.50% - 3.50% over the corresponding UST.
CMBS
CMBS’ rate buy-down features are being used as a tool to enhance loan proceeds on rolling bridge loan
originated in 2021-2022.
Spreads have widened in recent weeks and generally remain greater than 2.50% over USTs (or Swaps) unless a rate buy-down is purchased by borrower.
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