Commercial and multifamily mortgage bankers closed $358.5 billion of loans in 2013 – about a 47% increase compared to 2012 – according to the Mortgage Bankers Association's (MBA) Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.
Of the $358.5 billion closed, about $100.5 billion was for commercial bank and savings institutions. Commercial mortgage-backed securities issuers saw the second highest volume, at $79.8 billion, followed by life insurance companies and pension funds; Fannie Mae; REITS, mortgage Real Estate Investment Trusts and investment funds; and Freddie Mac, according to the report.
In terms of property type, multifamily properties saw the highest origination volume, at $136.9 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. First liens accounted for 97% of the total dollar volume closed.
‘Improving property markets and a strong appetite among lenders led to a very active year in commercial real estate finance,’ says Jamie Woodwell, vice president of commercial real estate research for the MBA, in a release. ‘Multifamily rental properties drew the most financing, and banks and thrifts were the largest source of commercial real estate lending. Despite the fact there are fewer maturing loans in need of refinancing this year, originations should continue to be buoyed by higher property values, rising property incomes and still low interest rates.’
Among repeat participants in the survey, the dollar volume of closed loans rose by 22%.
To access a copy of the full report, click here.