In past construction downturns, debt was often a problem. Apartment developers had trouble finding lenders for new projects.
However, many developers say finding loans isn’t an issue as starts have plummeted in the past year. “The debt markets are still very liquid,” Greg Bonifield, founding partner at Charleston, South Carolina-based apartment developer Woodfield Development, told Multifamily Dive.
Bonifield said that traditional banks, life insurance companies and other institutional players are active. “You have seen numerous funds put together that are actively deploying debt, especially in the bridge loan area,” Bonifield said.
But, as the declining construction start numbers have shown, it takes more than the availability of debt to make a development deal work.
