Lending Barometer: Private credit providers gaining multifamily market share

The Real Estate Capital USA Lending Barometer tracks non-securitized senior mortgage and mezzanine and preferred equity financings across markets and sectors.

The pullback of select regional and national banks is opening refinancing opportunities for US and international private credit managers, as seen in a series of high-profile loans over the past two months.

Research from the Real Estate Capital USA Lending Barometer snapshot shows some of the largest multifamily and mixed-use multifamily asset refinancings in 2023 have been made possible by non-US lenders and US-based private credit lenders.

These financings include a $312 million refinancing package originated by Paris-based bank Societe Generale and New York-based manager Rockwood Capital in October on behalf of Philadelphia-based developer and investment firm Post Brothers. Additionally, MF1 Capital, a joint venture between Boston-based Berkshire Residential Investments and New York-based Limekiln Real Estate, in October originated a $101 million loan on behalf of Akara Partners on a class A Nashville apartment property.

Despite the activity in the multifamily space, loan originations were down substantially in September and October from the peak of about $7.2 billion seen in June. By comparison, there were about $4.1 billion of new loan originations in September, with approximately $3.7 billion of financings completed in October.

The Real Estate Capital USA Lending Barometer tracks senior mortgage and mezzanine and preferred equity financings across markets and sectors.

To submit your deal, email Samantha Rowan at s.rowan@pei.group.