Multifamily Financing is Shifting: James Eng on Capital Markets in 2025

Jim Pfeifer and Paul Shannon chat with James Eng of Old Capital Lending to unpack today’s multifamily financing landscape. A 20-year commercial lending veteran in both institutional and private markets, James explains how surging interest rates, higher scrutiny on sponsors, and renewed competition in bridge loans are reshaping apartment deals. He also shares why LPs should treat debt as a top priority – from understanding agency vs. bridge terms to watching out for “race-to-the-bottom” lending and tricky rate caps. If you’re looking for clearer insight on the capital stack and how lenders view multifamily risk in 2025, this conversation offers a valuable blueprint.

Today's Takeaways:

• The Fed's rate cuts have created uncertainty in capital markets.
• Bridge loans are returning as a viable financing option.
• Rate caps have become more expensive and complex.
• Lenders are now more critical in their evaluations of borrowers.
• Limited partners should prioritize understanding debt structures.
• Transaction volumes are significantly lower than previous years.
• Cap rates need to align with interest rates for positive leverage.
• Potential recession risks are impacting lender confidence.
• Diversification of tenant demographics is essential for stability.
• LPs should actively seek updates on loan terms and conditions.

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