While lenders are being conservative in their underwriting, many are actively funding new loans.
At the onset of the pandemic more than three months ago, the capital markets instantly froze amid extreme market uncertainty. Today, some of the dust has settled—although uncertainty remains the primary market characteristic—and the is pent up capital and many lenders actively lending on new deals.
“One of the major misconceptions about the capital markets right now is that there is a lack of available capital,” Stephen Stein, managing partner at Tauro Capital Advisors, tells GlobeSt.com. “In reality, there is pent-up capital and lenders interested in providing loans right now. The capital markets have certainly not been shielded by the impacts of COVID-19 and some lenders are being a bit more conservative in their underwriting. That said, there are still a tremendous number of capital sources available with lenders who are currently underwriting deals across all property types with the exception of hospitality.”