On April 10th, ConnectCRE is hosting Connect Phoenix Multifamily at The Westin Kierland Resort & Spa. We caught up with one of our panelists, Thorofare’s Andrew Kim, a Director on the Originations team, to ask him a few questions about the current multifamily business environment.
Have you seen a shift in the types of loans that clients are looking for (i.e. more acquisition loans vs. refinancing)?
Andrew— Majority of our recent apartment loans that we’ve closed have been refinances towards newer built product. We are seeing a plethora of loan requests to retire higher levered construction debt that were originated in 2021-2022 that are now maturing.
When it comes to the types of multifamily deals you’re closing in Phoenix, are there patterns that you don’t necessarily see as frequently in other markets where Thorofare is active?
Andrew—The Phoenix multifamily market has been hit with a lot of supply and seeing assets in the PHX MSA still struggling to stabilize from an occupancy perspective. This isn’t always the case with other apartment markets we are actively lending in.
At the same time, are you seeing capital sources returning to multifamily lending that got out of it as the Fed’s rate increases began?
Andrew—We are seeing an increase of capital availability for multifamily, especially in the debt fund space. Lenders are underwriting more aggressively for multifamily, especially for strong markets and sponsors. We’re seeing cap rates underwritten to 25-50 bps tighter than previously, and also rent growth now being included in some analysis. A lot of capital availability means more “leaning in” to win deals.
April 10 – Rental Housing Leaders Take the Stage: The top developers, investors, owners, lenders, managers, brokers,and more will be onstage and onsite at Connect Phoenix Multifamily, SFR & BTR – will you? Register to join the industry’s power players and experts on Thursday, April 10th to find out what the top minds in Phoenix & Scottsdale rental-housing predict for the balance of 2025. www.ConnectPHXMF2025.com | April 10, 2025 | The Westin Kierland Resort & Spa, Scottsdale.
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