March 25, 2025

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

39 minutes

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.

Want To Learn More?

PassivePockets.com

Disclaimer

The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.

...more