Multi-Family Belle of the Commercial Lending Ball

Commercial and multifamily mortgagernoriginations jumped 36 percent in the second quarter of 2013 compared to thernfirst quarter and were up 7 percent from the same period in 2012.   The Mortgage Bankers Association said that originationsrnwere strong for most property types with the multifamily sector up 22 percent, originationsrnfor office properties increasing 75 percent, retail lending up 48 percent,rnindustrial 44 percent and hotel originations surging by 89 percent.  Only the health care sector lagged; it wasrnunchanged from a lackluster first quarter.</p

On a year-over-year basis however, multifamilyrnlending was the star of the show, increasing 31 percent from the second quarterrnof 2012.  Office and Industrial lendingrnwere unchanged over this period, retail was down 14 percent and health carernoriginations dropped 36 percent.  Hotelrnproperties was the only other sector in positive territory with an increase inrnlending year-over-year of 3 percent.  </p

“Commercial and multifamilyrnmortgage lending and borrowing continued to grow during the second quarter,”rnsaid Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.rn”The apartment market continues to be the belle of the ball, with multifamilyrnmortgage originations running 31 percent ahead of last year’s first half total.rnAnd after a slow start to the year, lending by life insurance companies surgedrnin the second quarter to record the highest quarterly volume on record for thatrnsector.”</p

As Woodwell said, liferninsurance companies made the strongest showing of the various investorrntypes.  Lending there was up by 16rnpercent compared to the same quarter in 2012 and doubled between Q1 and Q2rn2013. There was a 13 percent annual increase for commercial bank portfoliornloans, an 8 percent increase for Government Sponsored Enterprise (or GSE -rnFannie Mae and Freddie Mac) loans, and lending by Commercial Mortgage BackedrnSecurities (CMBS) Conduits fell 14 percent. <br /<br /On a year-to-date basis commercial and multifamily mortgage originations wererneight percent higher than originations during the same time period of 2012.  Originations for multifamily properties werernup 31 percent, hotel properties 13 percent, and industrial and officernproperties rose 1 and 2 percent respectively. rnSo far this year retail properties are down 19 percent and health carernproperties 27 percent from 2012 figures. rn </p

Among investor types,rnyear-to-date (through the second quarter) 2013 versus the same time period inrn2012, loans for conduits for CMBS saw an increase in loan volume of 22 percent,rnloans for GSEs saw an increase in loan volume of 20 percent, originations forrncommercial bank portfolios increased 11 percent and loans for life insurancerncompanies were even year-to-date 2013 versus year-to-date 2012.

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