Top 10 Multifamily Lenders of 2023
While the best multifamily lender for you depends on a wide range of factors, find out more about the 10 most active from last year.
The multifamily finance landscape has changed dramatically from the start of last year. Rapidly increasing interest rates, combined with fears over an impending recession, have caused many borrowers to delay refinancing or hold off on new acquisitions.
As a result, originations slowed toward the end of 2022. A slowdown in originations is very different from a stop, however. If anything, the increase in the cost of capital has made borrowers more aware than ever of the importance of competitive financing terms — and it’s now more important than ever before to find the right lender for your deal.
Using data sourced from public records, we looked at 10 of the largest originators from 2022. These include a number of major financial institutions, brokerages, and other originators that were extremely active throughout the course of the year.
Bigger isn’t always better, though. If you need financing for your next multifamily deal, fill in the form below, and we’ll shop your loan around to hundreds of lenders and originators to get you the absolute best terms possible from your best multifamily lender of 2023.
The Top Lenders of 2023
Our top lenders are listed below. For our methodology, we used public records from across the country, with special emphasis placed on lenders involved with financing packages of under $25 million. Our list was compiled balancing loan originations within these parameters with the amount of financing options offered.
Walker & Dunlop
Arbor Realty Trust
CBRE Capital Markets
#10 Wells Fargo
Wells Fargo is a large financial institution based in San Francisco that offers a range of financial products and services. The bank has been involved in numerous major financing deals in the real estate sector, particularly in the multifamily sector.
Wells Fargo offers various financing options, such as construction loans, permanent loans, and refinancing options, with flexible terms and competitive rates. The bank holds most of its loans, but close to 20% of the loans it extended last year were insured by either Fannie Mae or Freddie Mac.
Jones Lang LaSalle is a real estate services firm, and also one of the top multifamily lenders of 2022. The firm originated a strong portfolio of multifamily financing alongside a larger collection of loans on other commercial real estate assets, from industrial properties to shopping centers.
While the firm was formed in 1999 by the merger of two other brokerages, JLL can trace its roots back more than two centuries to its founding in 1783 in London. The company’s present-day headquarters is in Chicago.
#8 Capital One
Capital One was one of the top 10 multifamily lenders of the past year, with a strong multifamily financing book. The bank offers a wide range of Fannie, Freddie, and HUD financing for multifamily properties, and it has regularly been named among the agencies’ top lenders in recent years.
Founded in 1994, the bank started as a spinoff of a larger financial institution. At first, Capital One only offered credit cards, eventually moving into auto loans and later retail banking and real estate finance.
KeyBank was the seventh-ranked lender by multifamily origination volume in 2022. While multifamily lending makes up the vast majority of its portfolio, the regional bank does, upon occasion, finance other commercial real estate asset types.
Headquartered in Cleveland, the bank operates branches in 15 states but finances multifamily properties across the country. KeyBank typically does not provide construction loans, but the firm is heavily involved in providing agency debt and bridge loans for new builds.
If you don’t know this name, don’t worry — ORIX Real Estate Capital rebranded itself as Lument in late 2020. The company includes a number of other brands that may be more familiar, from Hunt Real Estate Capital to RED Capital Group.
Lument has a strong focus on multifamily properties, offering agency and HUD debt for apartment buildings, senior housing communities, and healthcare facilities.
Boston-based Greystone comes in fifth place on our list, owing to its significant origination volume and diversity of multifamily assets financed. Of its 2022 originations, more than one-third of the dollar volume was through HUD multifamily vehicles, with Fannie and Freddie loans also comprising a significant portion.
In addition to multifamily communities, Greystone finances everything across the commercial real estate spectrum, from self storage assets to office parks. The lender offers a wide range of financing options, including CMBS, bridge, and mezzanine loans.
#4 CBRE Capital Markets
CBRE comes in fourth on our list. The brokerage has closed major multifamily financing deals over the past 12 months, and they are active in every primary and secondary market nationwide.
CBRE Capital Markets provided significant Fannie, Freddie, and CMBS financing during the past year, though it was only involved in a handful of HUD deals, according to public records. The Dallas-based brokerage offers everything from small balance loans to conduit financing and life company debt.
Arbor takes third place on our list, owing to its exclusive focus on multifamily and its high volume of financing activity in 2022. The Long Island-based REIT offers a broad range of financing options, from agency debt to FHA multifamily and CMBS debt. The firm has also expanded its single-family rental portfolio financing options in recent years.
#2 Walker & Dunlop
Walker & Dunlop ranked second in multifamily loan origination volume. Though active in other commercial real estate sectors, the firm heavily focuses on the multifamily sector, especially with loans insured by the Department of Housing and Urban Development. Walker & Dunlop, founded in 1937, has been led by Willy Walker since 2007.
Berkadia tops our list of best lenders in 2023, based on its significant multifamily origination volume from 2022, not to mention its wide range of loan products. Founded in 2009 as a joint venture between Berkshire Hathaway and Leucadia National Corp., the firm offers debt and equity placement services and doesn’t only focus on multifamily, extending financing for everything from office buildings to hotels.
Any of the lenders mentioned above are great choices for your next multifamily deal, as long as your needs are aligned with what your lender is willing to offer you — think loan size, interest rates, even amortization and term.
Do you know how much money you need, but you’re not sure who the best multifamily lenders for your unique situation are? That’s what we’re here to help you with. We’ll take a look at your financing needs, and get competitive quotes from a wide range of lenders — not just those on the list above — getting you 10 soft quotes in 24 hours.
Fill in your details below, and find your best multifamily lender of 2023.
What are the best multifamily lenders of 2023?
The best multifamily lenders of 2023 are Berkadia, Walker & Dunlop, Arbor Realty Trust, CBRE Capital Markets, Greystone, Lument, KeyBank, Capital One, JLL, and Wells Fargo, according to Multifamily.loans. The list was compiled based on loan originations within parameters of under $25 million and the amount of financing options offered.
What are the most competitive multifamily loan rates?
Fannie Mae Fixed-Rate Multifamily Loans offer very competitive interest rates, up to 80% LTV, and most loans are non-recourse. According to Multifamily Mortgage Rates, today's rate ranges are approximate and fluctuate by the moment with indexes such as the 10-year Treasury, SOFR, and others. Furthermore, there is extensive underwriting that goes into each loan with considerations such as NOI, DSCR, sponsorship, market, property class, and more. The following are an approximation of where today's multifamily and commercial mortgage rates are:
- 5-Year Fixed: 3.00% - 4.50%
- 7-Year Fixed: 3.50% - 5.00%
- 10-Year Fixed: 4.00% - 5.50%
- 15-Year Fixed: 4.50% - 6.00%
- 20-Year Fixed: 5.00% - 6.50%
- 25-Year Fixed: 5.50% - 7.00%
- 30-Year Fixed: 6.00% - 7.50%
What are the advantages of working with a multifamily lender?
The advantages of working with a multifamily lender include better interest rates, longer terms, flexible terms, and higher leverage.
Better interest rates are due to lower risk in the multifamily property sector, and loans typically come with lower interest rates than similarly valued properties in other commercial real estate sectors.
Longer terms are available, with many multifamily loans limited to between five and 10 years, and some financing types, like HUD loans, offering fully amortizing, long-term options.
Flexible terms are available due to the wide range of options available, allowing borrowers to often find the terms they’re looking for by shopping around.
Higher leverage is available with multifamily financing typically allowing for higher LTV ratios than loans for other commercial real estate assets, like office and industrial buildings.
For more information, please visit Multifamily Bank Loans and What Is Multifamily Finance? A Beginner's Guide.
What are the qualifications for a multifamily loan?
To qualify for a multifamily loan, borrowers must typically meet certain qualifications, including:
- A good credit score
- A minimum of two years of experience in real estate
- A minimum of two years of experience in the same type of property
- A minimum of two years of experience in the same geographic area
- A minimum of two years of experience in the same type of financing
- A minimum of two years of experience in the same type of loan product
- A minimum of two years of experience in the same type of loan structure
- A minimum of two years of experience in the same type of loan terms
- A minimum of two years of experience in the same type of loan amount
- A minimum of two years of experience in the same type of loan repayment terms
- A minimum of two years of experience in the same type of loan interest rate
- A minimum of two years of experience in the same type of loan collateral
- A minimum of two years of experience in the same type of loan documentation
- A minimum of two years of experience in the same type of loan closing costs
For more information, please refer to this guide and this beginner's guide.
What are the different types of multifamily loans available?
There are many types of multifamily loans available, and these loans can be categorized by type or by the specific purpose for the loan. Depending on your situation, some of the financing types listed below may be a good fit, but many will not be.
The most common type of multifamily financing is conventional loans, which are typically offered by banks and other financial institutions, and are often used to purchase or refinance existing properties. Conventional loans may be offered at a fixed or floating interest rate, and they often require a substantial down payment and a good credit score.
Other types of multifamily loans include FHA loans, bridge loans, mezzanine loans, and CMBS loans. FHA loans are insured by the Federal Housing Administration and are typically used to finance the purchase of multifamily properties. Bridge loans are short-term loans used to bridge the gap between the purchase of a property and the permanent financing. Mezzanine loans are a type of financing that is secured by the equity in a property, and CMBS loans are commercial mortgage-backed securities that are used to finance the purchase of multifamily properties.
What are the benefits of investing in multifamily real estate?
Investing in multifamily real estate can provide a number of benefits, including potential for high investment returns, the ability to take advantage of compounding returns, and the ability to diversify your investment portfolio. Additionally, multifamily properties provide reliable monthly cash flow from renters due to reduced risk of vacancies.
For more information, please see the following sources: