“We are continuing to stay at the forefront of the Non-Prime/Non-QM space because we are reading the market and listening to what our customers are saying. This is a great loan product or residential property with commercial influence,” Fisher added. Up until recently, demand for funds in the multifamily space have been increasing. Thanks to heavy competition in the multifamily space, it is becoming difficult for smaller operators to compete in the space. In response to that competition, interest from non-institutional investors has migrated to smaller projects (i.e. 35-unit properties) that traditional banks have little interest in financing. Citadel’s move to offer a product that enables investment in smaller projects with a higher than normal LTV appears to be part of this growing market division.“Basically, if it has a bed or living residence attached to it, we can fund it,” Citadel Founder and CEO Daniel Perl said in a statement.
Citadel Servicing rolls out financing product for small multifamily properties
By Jeremiah Jensen 26 October 2018