Another Top-10 List — Largest Multifamily Lenders in 2013

Real estate works well as an investment given the leverage benefits on owner returns that lending can offer (as long as it is positive leverage).

The average total property return on apartments reported by the National Council of Real Estate Investment Fiduciaries (NCREIF) in 2013 was 8.78 percent. The typical 2013 multifamily loan interest rate was hovering at 4.5 percent. If an apartment buyer, for example, put 40 percent down, their effective pretax return on equity (including cash flow and property appreciation) was an impressive 15.2 percent. Now you know why I maintain the theme that it remains a good time to overweight in real estate investments.

If you are in the business of investing in apartments, then a list of the largest lenders is of value. Apartment Finance Today reported the top 10 multifamily lenders for 2013 earlier this month.

So who were the largest multifamily lenders in 2013? The following list is ranked by the total dollar volume of multifamily lending.

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As you can see, the lender making the greatest amount of loans is not the same lender making the largest loans. For major projects, this is a target rich list for investors seeking loans.

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