For a while, one of the biggest questions in commercial real estate was whether lenders were willing to finance multifamily properties.
Now, the conversation is changing.
According to recent GlobeSt coverage, debt capital is widely available, but a different challenge is emerging: finding enough equity to make certain deals work.
And that could have major implications for multifamily investors heading into 2027.
What’s Actually Happening?
Willy Walker, chairman and CEO of Walker & Dunlop, recently highlighted an important distinction.
Lenders have capital available through banks, private debt funds, life insurance companies, and agency financing programs.
But having lenders ready to provide debt doesn’t automatically mean investors have enough equity to complete acquisitions, refinance existing properties, or move forward with new developments.
Here’s why that matters:
- Refinancing challenges: Some owners may need to contribute additional equity if their property no longer supports the same loan amount.
- New acquisitions: Investors may need larger equity contributions to make a purchase financially viable.
- Development delays: Even when construction financing is available, projects can stall without sufficient equity commitments.
- Investment partnerships: Bringing in new equity partners may become an important option for owners looking to move forward.
Why This Matters for Investors
Imagine owning a multifamily property that has performed reasonably well over the past few years.
Your loan is approaching maturity, and you’re preparing to refinance.
But the new financing doesn’t cover the entire amount needed to repay your existing debt.
What happens next?
You may need to bring additional capital to the table, find an equity partner, or reconsider your strategy.
That’s why understanding the full capital structure matters just as much as finding a lender.
Krystle’s Take
Getting financing is only part of the equation. Having the right combination of debt and equity is what makes a deal work.
Investors sometimes focus heavily on how much a lender will provide without considering how much capital they may need to contribute themselves.
But the financing structure needs to make sense for the property, the investor, and the long-term business plan.
This is especially important for owners approaching a refinance or considering a new multifamily acquisition.
The earlier you understand your potential financing gap, the more time you have to evaluate your options.
The Bottom Line
Multifamily financing isn’t simply about whether lenders have money available.
It’s about whether investors can put together a capital structure that supports the entire deal.
As we move toward 2027, understanding your equity requirements could be just as important as securing the loan itself.
Before your next acquisition or refinance, make sure you know what the full financing picture looks like.
If you’re exploring a multifamily investment or preparing to refinance, let’s discuss your financing options.