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Chicago Multifamily Lending Holds Surprisingly Steady
Chicago multifamily lenders have seen fewer significant changes to lending conditions than might be expected during the COVID-19 pandemic and resulting downturn. That’s among the topline conclusions to be drawn from a newly released survey of lenders conducted by Essex Realty Group.
For example, just 24% of respondents reported a “significant decrease” in volume, compared to 47% who reported a slight decrease. Twenty-nine percent have experienced a slight increase.
Essex Realty principal Kate Varde said, “Even though many large lending institutions are requiring additional escrows, the majority of community banks are not.”
She added that it was no surprise to see that interest rates have come down since the start of the crisis. More surprising, though, is that the majority of respondents are lending at 75% loan to value, with the caveat that 87% of respondents have seen a decrease in appraised values which result in decreased loan proceeds.
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- ◦Financing
