RCA in the commercial property press:

Do Wells Fargo's Recent DC Loans Mark the Return of National Banks to the Commercial Lending Scene?

Globe St reports: Earlier in the year, nationally-operating Wells Fargo bank provided a joint venture between the Rockpoint Group, Jefferson Apartment Group, and Perseus Realty with a $53 million construction loan to build a mixed-use development called 14W, which will be located on the former-YMCA site on 14th Street in Washington, DC. Erika Morphy of GlobeSt.com stated of the origination that, “The financing, of course, is yet another indication of the growing confidence lenders have in the DC area construction market. It also highlights, at least anecdotally, a growing role that Wells Fargo has been taking in local deals.”

Ms Morphy was quick to acknowledge, however, that according to Ari Firoozabadi, director of Marcus & Millichap’s National Multi-Housing Group, “…national banks only accounted for approximately 8% of total multifamily originations in 2010, one of which is Wells Fargo.” Mr Firoozabadi was citing data aggregated by Real Capital Analytics, and also reiterated that government-backed Fannie Mae and Freddie Mac together dominated multifamily lending in 2010, with a 70% market share.

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Posted by: Nina Turner

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